Malta’s “golden passport” programme, which allows individuals to obtain citizenship through financial investment, has been found to violate European Union law, according to a ruling by the EU’s highest court.
The European Commission initiated legal proceedings against Malta in 2022 over its policy, which grants international applicants Maltese citizenship—and thus the freedom to live and work across EU member states—upon an investment of at least €600,000 (£509,619), the purchase or lease of qualifying real estate, and a minimum €10,000 donation to charity.
In its decision, the Court of Justice of the European Union declared that the scheme “reduces the acquisition of nationality to a transaction of a purely commercial nature.”
The Maltese government has yet to issue a formal response to the verdict. Former Prime Minister Joseph Muscat has described the court’s judgement as “political” and expressed confidence that the programme could persist if appropriately adjusted.
Should Malta fail to abide by the ruling, it faces the possibility of substantial financial penalties.
The Court further emphasized that “Union citizenship cannot be granted as the result of a commercial arrangement.”
According to Reuters, Malta has consistently asserted that its interpretation of EU treaties is valid.
In response to Russia’s invasion of Ukraine and subsequent EU measures against Kremlin affiliates, Malta halted the scheme’s availability for Russian and Belarusian applicants in 2022.
The court’s decision on Tuesday diverges from the non-binding advice issued last October by Advocate General Anthony Collins, who argued the Commission had not demonstrated that EU law mandates a “genuine link” between the applicant and the state for citizenship. He noted that individual states retain the authority to define their own nationality criteria and, consequently, EU citizenship.
While each EU nation determines its own citizenship requirements, the court concluded Malta’s approach “undermines mutual trust” among member states.
The European Union has consistently urged member states to discontinue such initiatives, pointing out that citizenship-by-investment programmes pose significant security risks and can facilitate money laundering, tax evasion, and corruption.
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