EU Court Declares Malta’s Golden Passport Scheme Illegal, Marking End of Citizenship-for-Cash in the Bloc

The European Court of Justice has ruled that Malta’s controversial golden passport scheme breaches EU law, delivering a decisive blow to the last remaining investor citizenship program in the European Union. The judgment, released this week, determined that Malta’s practice of granting citizenship in exchange for substantial financial contributions amounted to the “commercialisation” of EU nationality and violates the principles underpinning EU citizenship.

The scheme, first launched in 2013 and expanded in 2020, allowed wealthy individuals to obtain Maltese nationality by contributing up to €750,000 to the state and maintaining a nominal one-year residency. Holding a Maltese passport confers the right to live and work throughout the EU.

The court found that the requirements for obtaining citizenship under Malta’s scheme were incompatible with EU law. “[Ìt] cannot be considered that actual residence was regarded by Malta as constituting an essential criterion for the grant of the nationality,” the ruling stated.

The European Commission, which has long opposed such schemes, welcomed the decision. A spokesperson said, “European citizenship is not for sale. Investor citizenship schemes breach EU law and as such should be abolished by all member states.” The Commission had initiated legal action against Malta over the issue years ago, citing concerns that the scheme offered a backdoor to EU citizenship for individuals with no real ties to the Union.

Critics have consistently warned that golden passport programs carry serious risks, including facilitating money laundering, enabling corruption, and posing security threats. These concerns led the Commission to launch infringement proceedings against both Malta and Cyprus in 2020. While Cyprus terminated its program shortly after, Malta continued to defend its right to confer citizenship on economic grounds.

In response to the ruling, the Maltese government stated that it is currently reviewing the court’s decision. It also highlighted the program’s financial benefits, noting that the scheme has generated more than €1.4 billion in revenue for the state since 2015.

Former Maltese Prime Minister Joseph Muscat, who implemented the scheme during his time in office, reacted on social media by accusing the EU of political bias. He wrote on Facebook that the ruling was “politically motivated.” Muscat resigned from office in 2020 amid mounting pressure over his alleged links to the investigation into the 2017 assassination of journalist Daphne Caruana Galizia.

With Malta now forced to halt its golden passport initiative, the EU’s last citizenship-for-sale program comes to an end. While several member states continue to operate so-called golden visa schemes—granting residency rather than full citizenship—these too have drawn criticism over their potential use in illicit financial activity.

By fLEXI tEAM