The European Court of Justice (ECJ) has ruled that Malta must cease its controversial golden passport scheme, deeming it a violation of European Union rules.
This scheme, which has been under examination for years, enables wealthy individuals to obtain Maltese and, thereby, EU nationality by investing approximately $1.14 million in the country.
The European Court of Justice’s ruling is a significant reversal for Malta, one of the last European Union nations to still offer this type of citizenship-by-investment program.
Table of Contents
Golden Passport Scheme
The golden passport scheme, also known as citizenship-by-investment (CBI) programs, enables international citizens to obtain a nation’s nationality in exchange for a substantial monetary investment.
In the case of Malta, successful candidates obtained not only Maltese citizenship but also EU nationality. This implied visa-free entry to more than 180 countries and the freedom to settle, work, or study anywhere in the European Union.
These schemes have been popular among wealthy individuals from nations with travel or political restrictions. Hence, they have also drawn criticism over concerns related to corruption, money laundering, and national security.
Why Malta’s Golden Passport Scheme Is Being Closed
The European Commission sued Malta in 2022, arguing that the scheme permitted individuals without a genuine connection to the nation to obtain EU citizenship primarily through financial means.
In its ruling, the European Court of Justice declared, “A member state cannot award its citizenship, and by extension European nationality, in exchange for predetermined reimbursements or investments, as this crucially leads to rendering the acquisition of citizenship a common commercial transaction.”
While EU member states have regulations over their nationality rules, the court pointed out that Malta’s program undermines confidence between member states. It highlighted that genuine citizenship requires an authentic connection between the candidates and the country, not just financial investment.
Malta Responds To The EU Ruling
Regardless of the court’s clear spot, Malta has upholded the scheme. The authority maintains that the golden passport program adheres to EU treaties and is administered as a legal instrument to attract high-value investment to the nation.
Hence, the European Court of Justice’s decision is binding; Malta will now be compelled to stop the program or face legal consequences, including prospective financial penalties or limitations on its participation in European Union programs.
If you enjoy this article, don't miss out on the valuable insights and information available in our other related posts:
- How To Get A Job In The UK With A Sponsored Visa: Step-By-Step Guide
- Procedures For Married Couples Joint Work Visa Application In Canada
- The Supreme Guide To Preparing For Your US Visa Biometric Appointment
- 12 Pathways To U.S. Citizenship In 2025 – From Easy to Hard
- Belgium Updates Work Permit Laws For Non-European Citizens
How This Will Affect Investors And EU Citizenship Seekers
This ruling highlights the end of the program for one of the European Union’s last remaining golden passport choices. Below is how it impacts stakeholders:
For Investors
People who plan to apply via Malta’s scheme will likely forfeit this route to EU nationality. They may have to consider optional choices, such as the golden visa program, which provides residency but not citizenship in exchange for investment.
For Existing Passport Holders
While the court did not rule on retroactive withdrawal, existing passport holders could face intense examinations from EU member states.
For Other Nations
The judgment clearly notifies other countries that are providing similar programs. While nations such as Bulgaria and Cyprus have already halted their own, the European Court of Justice’s stance strengthens the EU’s desire to eliminate such schemes.
EU’s Crackdown On Citizenship-For-Sale
The European Union has long expressed concerns about golden passport schemes. Critics argue they enable wealthy individuals to acquire European nationality without genuinely committing to the continent’s values, society, or economy.
With expanding safety and ethical concerns, mainly in response to geopolitical tensions and financial crime threats, the European Union is seeking robust laws or outright prohibition on such programs.
What Is Next For Citizenship Investors
While Malta’s scheme is closing down, options still exist:
- Golden visa schemes: Nations such as Portugal, Greece, and Spain offer residence permits, not nationality, through real estate or business investment. These enable long-term visits and prospective nationality after so many years of residence.
- Naturalization pathways: Investors may also consider traditional pathways to nationality through long-term residence, marriage, or employment.
Caribbean countries such as Saint Kitts and Nevis or Dominica offer fast-track nationality-by-investment for people concentrated on global mobility, even though these do not provide EU advantages.
In conclusion, the EU’s highest court has made it known that citizenship cannot be purchased. Malta is required to stop its golden passport scheme now, aligning with wider European values of solidarity and mutual honesty. While this would end the scheme’s pathway to European Union citizenship, it would also boost the prestige of the European Union’s shared identity.
