EU Ruling Finds Malta’s Golden Visa Schemes Illegal

Key Takeaways

• CJEU ruled Malta’s golden passport scheme illegal, requiring immediate termination.
• Golden passport schemes banned EU-wide; golden visa schemes face stricter scrutiny and possible reforms.
• Applicants now face longer processes, more requirements, and stricter checks across all EU investment migration programs.

The Court of Justice of the European Union (CJEU) has ruled that Malta 🇲🇹 must end its golden passport program, saying it goes against the spirit and law of the EU. This ruling doesn’t only affect Malta—it matters for all countries in Europe that have offered ways for wealthy people to get citizenship or residency in return for money. The decision is a turning point for so-called “golden visa schemes” and the future of investment migration across the region.

What Did the EU Ruling Say?

The CJEU looked closely at Malta’s program, which allowed people to get citizenship by making a big financial investment (often called a “golden passport”). They decided that this way of selling citizenship, especially when the person has no real connection—like living or working in the country—breaks important rules of the European Union. The court said giving passports just for money turns EU citizenship into a thing that can be bought and sold, which is not allowed under EU treaties.

Malta 🇲🇹 was ordered to close its golden passport scheme right away. The government agreed and promised to follow the court’s decision. However, people who had already received their passports would not lose them. Malta 🇲🇹 said it would honor those already granted citizenship but would not give out new passports through this program.

The Bigger Picture: Types of Investment Migration

It’s important to know the difference between two types of programs:

• Golden Passport (Citizenship-by-Investment): Here, a person pays a large sum for a passport. This means they become a national of that country and, in the EU, get all the same rights as people born there.
  – Golden Visa (Residency-by-Investment): In this program, the person pays money in return for the right to live—sometimes not even permanently—in the country. Over time, they might be allowed to apply for full citizenship, but it’s not automatic.

Let’s look at how the two compare:

The court’s ruling was very clear about the golden passport schemes, but other schemes—like golden visas—are now facing more questions from lawmakers and ordinary people.

What Happens to Other Countries?

Malta 🇲🇹 is not the only country that has had a golden passport or golden visa scheme. In past years, countries such as Cyprus 🇨🇾 and Bulgaria 🇧🇬 had similar programs but stopped them due to scandals and increased pressure from the EU. Others—like Portugal 🇵🇹, Spain 🇪🇸, Ireland 🇮🇪, and the Netherlands 🇳🇱—have made their golden visa schemes stricter or shut down parts of them. The main reasons for this include worries about making housing too expensive and possible security risks.

Analysis from VisaVerge.com suggests this ruling will likely speed up changes in all countries that still have golden visa schemes. Many experts and politicians are calling for the EU to create new, stronger rules to prevent citizenship (or even residency) from being bought through investment alone. These groups want strict checks on people who apply, require real ties to the country, tax money earned from these schemes more, and watch out for companies promoting them.

As one major political group in the European Parliament, Renew Europe, put it: “The ECJ decision leaves the Maltese government no choice but to immediately scrap its problematic golden passport scheme… [It] also underlines that EU-wide rules on golden visas and passports are needed.”

Will Golden Visa Schemes Survive?

While golden passports have been shut down in Malta 🇲🇹 and other countries, golden visa schemes still exist in some places. For example:

• Greece 🇬🇷 and Hungary 🇭🇺: These countries still allow people to invest in order to live in their countries.
• Portugal 🇵🇹: The country recently removed real estate as an eligible investment, due to housing cost worries.

But these programs are now under much closer watch. Many people in politics and society believe there should be more rules—or even a total ban—on any program that allows people to get residence without truly living or being part of the community.

Here are some steps that are being talked about:
– Making people live in the country for several years before even thinking about getting citizenship.
– Doing deep checks to make sure applicants are not involved in crime or corruption.
– Ensuring countries follow money-laundering rules closely.
– Having authorities keep a close eye on companies and agents who help people apply for these programs.

Why Was This Ruling Needed?

The idea of selling citizenship—or even the right to live somewhere—has sparked fierce debate across Europe.

Some of the main complaints are:
– Public Trust: Many citizens of EU countries feel it’s unfair when someone can simply pay to get the same rights as someone born in Europe, without any effort to live there or learn the language.
– Security: Law enforcement agencies have found cases where criminals have tried to use these passport or visa schemes to hide assets or move around Europe more freely.
– Housing Problems: In some countries, investment in property by wealthy foreigners has made local housing unaffordable for normal families.

The EU has pushed for years to put a stop to programs that give out passports or visas just for investment, warning of the risks to both local communities and the way democracy works in the region. The decision against Malta 🇲🇹 sends a strong message that these programs must change.

What About People Already in These Programs?

Some people have already paid a lot of money and received citizenship or residency through golden visa schemes, both in Malta 🇲🇹 and other countries. The Maltese government has said it will not take citizenship away from anyone who got it before the ruling. However, everyone should expect more detailed checks for new or even pending applications. Governments are likely to ask for more documents, proof of physical presence, and stronger background checks in the future.

People thinking about applying for such programs anywhere in the European Union 🇪🇺 should know that the process may now take longer, cost more, and demand much stricter proof that you have a real reason to live in that country.

What Comes Next? The Road to Change Across Europe

• Lawmakers’ Role: The European Parliament and European Commission are now expected to talk about and create new rules for all countries. These rules could set minimum requirements for residency, higher taxes on investments, and better supervision of application agents.
• Countries Adjust Programs: Countries that still have golden visa schemes will probably make them much tougher. At least, new rules will require physical presence (living there for years), or even language and community tests.
• Investors Face Uncertainty: People or families looking to move to the EU through investment will have more hurdles. The fast-track option to EU citizenship is gone, and even residency options are getting more difficult.

The goal is to make sure that long-term residents or citizens really feel part of and contribute to their new home country, instead of just using it as a place to store wealth or as an entry point to all of Europe.

What Does This Mean for the Future of Golden Visa Schemes?

The EU Ruling against Malta 🇲🇹 is more than a single country’s problem—it’s a wake-up call for the whole European system of investment migration. Policymakers are now working on ways to:
– Protect the meaning of citizenship, so it cannot be bought.
– Keep local people from being priced out of their own housing markets.
– Prevent criminals from using loopholes to get EU benefits.

Based on this ruling, any country that tries to introduce a new “citizenship for sale” program will quickly face legal trouble from EU courts. At the same time, golden visa schemes that only offer residency (not a passport) are now firmly in the spotlight. Countries must show these programs do not harm society, are fair, and include strict checks.

Is All Investment Migration Over in the EU?

No, not all investment migration is banned right now. Some golden visa schemes still allow people to apply if they invest money, start a business, or buy government bonds. But after the EU Ruling against Malta 🇲🇹, it is very likely that large changes are coming:

• Programs will require a real link with the country, like long physical stays.
• Governments will watch more carefully to prevent money laundering and other abuses.
• Ordinary citizens will likely get more say in what types of people and investments come into their country.

Key Takeaways and Next Steps

1. Golden passport schemes—the chance to buy EU citizenship—are now illegal, at least as per the CJEU’s case against Malta 🇲🇹.
2. Remaining golden visa schemes are under heavy review, and may soon be changed or closed.
3. New rules are coming, likely across the whole EU, that will mean more checks, longer residency periods, and better monitoring for all investor-based migration.
4. Both investors and countries should prepare for a more careful and rule-focused future.

For readers looking for more information on the rules and programs still offered by Malta 🇲🇹, the Maltese government maintains an updated page about citizenship and residency programs here.

As the European Union 🇪🇺 moves towards a system that does not allow people to simply buy their way into citizenship or residency, people interested in golden visa schemes should watch closely for new laws and decisions in the months to come. With each country adapting its policies, and new rules expected at the European level, the way people invest to live or become citizens in Europe is changing fast. Never has there been a more important time to stay informed and prepared for developments in investment migration.

Learn Today

CJEU → Court of Justice of the European Union, the highest court interpreting EU law for member countries.
Golden Passport → A program granting citizenship in exchange for significant financial investment, usually with little or no residency requirement.
Golden Visa → A scheme granting residency, not citizenship, through investment; may require some physical presence or integration.
Residency-by-Investment → Obtaining legal residency in a country by investing in its economy, often through property, business, or funds.
European Parliament → Legislative institution of the European Union that helps create and oversee EU laws and regulations.

This Article in a Nutshell

Malta must halt its golden passport program after the CJEU declared it illegal, reshaping investment migration in Europe. Golden visa schemes remain but face tighter scrutiny and probable reform. Future applicants should expect stricter requirements, longer timelines, and comprehensive background checks as the EU tightens residency and citizenship standards.
— By VisaVerge.com

Read more:

• Golden visa brokers urge fast action after Malta court ruling
• EU citizenship redefined after Court of Justice ruling on Malta
• European Court of Justice rules Malta golden passport program illegal
• EU Court of Justice declares Malta golden passport program illegal
• EU Pressure Fuels Drop in Malta’s Citizenship by Investment Sales