EU Court of Justice declares Malta golden passport program illegal

Key Takeaways

• EU Court of Justice ruled Malta’s golden passport scheme illegal, ending citizenship-for-investment in the EU.
• Applicants needed at least €600,000, property, donation, and three years’ residence to qualify for Malta’s program.
• Malta risks large fines if it does not fully shut down the golden passport program immediately.

The system of granting citizenship in exchange for investment, known as the “golden passport” scheme, has long been a subject of debate in Europe. Recently, this debate reached its breaking point with a firm ruling from the EU Court of Justice (ECJ). The court declared that Malta 🇲🇹’s golden passport program is illegal under the laws of the European Union. This decision closes the chapter on such schemes within the EU, bringing big changes for how countries handle citizenship and for those looking to get EU passports through investments.

The ECJ’s decision comes after years of warnings and legal challenges about the risks that golden passport schemes pose for the European community. Many see this as a move to keep the value of EU citizenship high, to protect security, and to ensure that new citizens have a genuine connection to the country.

Let’s walk through what happened, what the court decided, why this matters, and what the future might hold.

EU Court of Justice Declares Malta’s Golden Passport Scheme Illegal

On a key day for EU law, the EU Court of Justice gave a clear answer to a question that had been troubling many: can a country like Malta 🇲🇹 sell its citizenship, and with it, access to the EU, in exchange for money alone? The answer from the court was a strong “no.”

Key Points from the Decision

• Malta 🇲🇹 operated an investor-citizenship program, often called a golden passport scheme, that allowed people from outside the EU to get a Maltese passport. By getting this passport, they also got all the rights of EU citizenship—for themselves and their families.
• The main requirement was a financial investment—at least €600,000 ($684,000)—plus requirements to own or rent a property, make a donation to charity, and spend a minimum of three years living in Malta 🇲🇹.
• The ECJ found this program amounted to the sale, or “commercialisation,” of citizenship. The court said this was not allowed under EU law.
• It explained that, while each EU country has the right to decide who can become a citizen, this must follow the rules of the EU as a whole. Selling citizenship with almost no real tie to the country is not in line with EU values.
• The decision says such schemes harm core principles such as trust between countries, working together honestly, and holding all member states to a high standard. It also can damage mutual trust across the EU.

Why Did Malta Have This Program?

Malta’s government saw the golden passport program as a way to bring in money and investment. Like the earlier schemes in Cyprus 🇨🇾 and Bulgaria 🇧🇬, people who had enough wealth could buy their way into citizenship. Malta 🇲🇹 set the basic price at €600,000. Applicants also had to either buy or rent a home and make a donation.

The idea was to attract wealthy people, who might invest in the local economy, buy property, and create jobs. But it also made it possible for those with enough money to skip normal paths to citizenship, like living in the country for many years or showing deep ties to the community.

Over time, this idea spread across several EU member states, leading to a small but important market for these passports.

Trouble and Criticism:

But with more and more people gaining citizenship this way, the problems grew louder:

• The scheme let people become citizens, with access to all parts of the EU, without really living or being a part of the country.
• The European Commission, the main body in charge of making sure EU rules are followed, became very worried. They thought the program could put European security at risk, especially by letting those who should be banned from travel enter the EU.
• At least seven people who got Maltese passports through this program were later put under EU sanctions or banned from travel, mostly because of connections to Russia’s 🇷🇺 actions in Ukraine 🇺🇦.
• Experts and critics said the scheme made it too easy for wealthy people, including those who might be involved in crime or corruption, to get deep access to the EU.
• There were signs that schemes like these made it easier for people to hide their backgrounds or use their money to avoid proper checks.

Details of the ECJ Ruling

The EU Court of Justice gave a very detailed explanation of why Malta 🇲🇹’s golden passport scheme broke the rules. The court made these points:

• EU countries decide who gets their citizenship, but this must fit with EU law. Citizenship is not just a passport—it’s a connection to Europe as a whole.
• By giving citizenship only for money, Malta 🇲🇹 turned citizenship into a product to be sold. This breaks the idea that a citizen should be linked by real ties, not just a payment.
• The practice put other EU countries at risk. This is because someone who becomes a citizen of Malta 🇲🇹 could then live, work, vote, and travel anywhere in the EU.
• The court used Article 20 of the Treaty on the Functioning of the EU to support its view. This law says all citizens of an EU country are also citizens of the EU and share certain rights, such as the freedom to move and reside across the bloc.

What Happens to Malta’s Program Now?

The court did not leave much room for debate. Malta 🇲🇹 must close its golden passport scheme fully and quickly. If the country does not listen to the court, it risks large fines. The European Commission could go back to the court and ask for these fines to be imposed.

Malta 🇲🇹’s government said in a statement that it is looking at the ruling very carefully. Officials want to study what steps must now be taken to bring their national laws into line with Europe’s binding decision. This means Malta is likely to change its passport rules soon, ending golden passports altogether.

Broader Impact Across Europe

This decision was not just about Malta 🇲🇹. It is about how Europe 🇪🇺 as a whole treats citizenship. Before the ruling, other countries like Cyprus 🇨🇾 and Bulgaria 🇧🇬 had run similar programs. But after warnings and political pressure, those countries closed their schemes because of:

• Concerns about money laundering—when people move “dirty” money into the system by buying property or making investments.
• Risks that criminals or people with unknown backgrounds could get EU passports.
• Worries about huge spending on property by foreign investors, which pushed up prices for regular local families.
• Security fears that important EU travel rules could be sidestepped.

Now, with Malta 🇲🇹 being ordered to shut down its golden passport program, there are no similar schemes left in the EU. The court’s decision makes it very clear: EU citizenship cannot be bought. There has to be a real connection—such as living in the country, working there, or family ties.

How Does This Impact Applicants, Investors, and Other Stakeholders?

This case has big effects:

• For investors hoping to buy their way into the EU, the door is now closed. No EU country can offer a golden passport solely for a cash payment or investment.
• For EU residents, the rule is meant to increase trust that new citizens have a real connection to their adopted country and to Europe.
• For other countries around the world that have their own investor-citizenship programs, this case sends a clear warning: the EU’s approach toward golden passport schemes is strict.
• For security agencies and anti-money-laundering groups, the ending of these programs in Europe closes one big loophole.

Also, the decision can change the way global businesses and high-net-worth individuals plan for the future. Some may now seek citizenship or residence in non-EU countries as a backup plan.

Wider Legal and Political Picture

The ECJ’s decision also touches on the balance between national power and EU control. While countries keep the right to decide their citizens, the EU makes it clear that some choices affect the whole bloc and need to follow shared values.

By shutting down these schemes, the EU strengthens trust that each member will keep its citizens, and by extension EU citizens, held to honest standards. The Union aims to prevent anyone from using money to get around important checks or rules.

Possible Next Steps for Malta 🇲🇹

Maltese officials now must rewrite laws and scrap any leftover parts of their investment passports. They need to quickly align their rules with the new standard set by the EU Court of Justice. If not, the consequences may be costly in terms of large fines and further pressure from Brussels.

The Maltese government may also need to review existing citizenships that were granted through the old scheme, and possibly find ways to make sure all current citizens who gained passports this way meet stricter standards for ongoing compliance.

What About Other Kinds of Residency by Investment?

While golden passports are now banned in the EU, some countries still allow what are often called “golden visas.” These programs typically offer long-term residence, not citizenship, in exchange for an investment. Applicants must still meet other checks and are not automatically given all the rights of citizenship—such as voting or holding an EU passport.

The end of citizenship-for-investment programs may push more attention to these golden visa routes, but the rules for these visas may also get tighter in the future as scrutiny grows.

Summary Table for Malta’s Scheme and ECJ Ruling

As reported by VisaVerge.com, the message from the EU is strong and clear: “EU nationality is not for sale.” Golden passports are now a thing of the past in Europe.

Final Thoughts

The recent EU Court of Justice ruling about Malta 🇲🇹’s golden passport scheme is a turning point. It spells out that EU citizenship can only be given to those who have real ties to a member state—not just a checkbook. The decision helps safeguard the value of what it means to be an EU citizen and keeps the promise that European borders are safe for everyone.

Malta 🇲🇹 now stands as a clear case study for all EU countries—a reminder of how the rules are meant to work and the need for strong standards that put security, mutual trust, and real connection first.

For more details on Malta’s specific citizenship rules and updates to their program in the wake of this ruling, you can visit the official Government of Malta citizenship page. This site has the latest information for anyone affected by or interested in the changes to Malta 🇲🇹’s policy.

The move away from golden passports looks set to make Europe’s borders more secure and to strengthen unity between member states. For applicants and governments alike, this is a sign to look for deeper connections than simple investments. It keeps EU citizenship tied to community, history, and honest ties—not just to a bank account.

Learn Today

Golden Passport Scheme → A program that grants citizenship in exchange for financial investment, typically without requiring genuine ties to the country.
EU Court of Justice (ECJ) → Europe’s highest court, which interprets EU law and ensures its uniform application across all member states.
Article 20 TFEU → A section of the Treaty on the Functioning of the European Union that defines EU citizenship and related rights.
Mutual Trust → A principle requiring EU countries to respect each other’s laws and decisions, ensuring cooperation and integrity across the EU.
Money Laundering → The process of disguising illegally obtained money as legitimate, often by channeling it through investments or property.

This Article in a Nutshell

Malta’s golden passport scheme is over. The EU Court of Justice declared it illegal, closing all EU citizenship-for-investment paths. Malta must adapt fast or face fines. This ruling safeguards EU citizenship, emphasizes genuine ties, and signals that European nationality cannot be bought—impacting applicants, governments, and global mobility strategies.
— By VisaVerge.com

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