Photo by Marta Branco
The European Court of Justice (ECJ), the highest judicial authority in the European Union, has ruled that Malta must immediately cease its controversial “golden passport” program, declaring it incompatible with EU law.
In its decision issued Tuesday, the court stated that “a Member State cannot grant its nationality — and by extension, European Union citizenship — in exchange for pre-determined payments or investments.” The ruling emphasized that monetizing citizenship effectively reduces nationality to a “commercial transaction,” undermining the foundational principles of EU citizenship.
Malta’s citizenship-by-investment program, introduced through a 2020 amendment to its citizenship law, allows foreign investors to apply for naturalization after just 12 months of residency — provided they meet several financial conditions. These include owning Maltese property worth at least €700,000 ($798,000) or paying an annual rent of €16,000, making a significant financial contribution to the Maltese government, and donating to a registered non-governmental organization.
The European Commission initiated legal action against Malta over the scheme, warning that it facilitated corruption, sanctions evasion, and other financial crimes. The ECJ has now ordered Malta to comply with the judgment “without delay,” warning that failure to do so could result in financial penalties.
In response, the Maltese government said it would abide by the court’s decision while reviewing its legal ramifications. Defending the program, it noted that the initiative has brought €1.4 billion ($1.6 billion) into the country since its inception in 2015.
Former Prime Minister Joseph Muscat, who implemented the scheme, criticized the ruling as “politically motivated” and argued that the program should be revised rather than dismantled.
Malta remains the only EU country still operating such a scheme. Cyprus terminated its citizenship-for-investment program in 2020, and Bulgaria followed suit in 2022 after similar scrutiny.
Transparency and anti-corruption advocates welcomed the court’s decision. Maltese journalist Matthew Caruana Galizia, son of slain anti-corruption reporter Daphne Caruana Galizia, called the ruling “a win for the people of Malta and all EU residents” who have been exposed to the risks of allowing wealthy individuals to buy access to the EU.
Transparency International also lauded the decision. “This ruling confirms that EU citizenship cannot be treated as a commodity,” said Maira Martini, a lead figure at the organization. “It sends a clear message that reckless passport-for-sale schemes have no place in the EU.”
The ruling coincides with a controversial announcement by U.S. presidential candidate Donald Trump, who recently proposed a “gold card” visa initiative that would grant U.S. citizenship to foreign nationals willing to invest $5 million — a move critics say mirrors the EU’s criticized schemes.
