Malta to End Golden Passport Scheme Over Citizenship-for-Sale Concerns

The European Court of Justice (ECJ) has ruled that Malta must discontinue its controversial golden passport programme, stating it violates European Union law.

This programme, which has been under scrutiny for years, allows wealthy individuals to obtain Malta and thereby EU citizenship by investing approximately €1 million ($1.14 million) in the country.

The ECJ ruling is a significant setback for Malta, one of the last EU countries still offering this kind of citizenship-by-investment scheme.

What Is a Golden Passport Programme?

Golden passport programmes, also known as citizenship-by-investment (CBI) schemes, allow foreign nationals to obtain a country’s citizenship in exchange for a substantial financial investment.

In Malta’s case, successful applicants gained not only Maltese nationality but also EU citizenship. This meant visa-free access to 180+ countries and the right to live, work, or study anywhere in the EU.

Such programmes have been popular among wealthy individuals from countries with travel or political restrictions. However, they’ve also drawn criticism over concerns related to corruption, money laundering, and national security.

Why Is Malta’s Golden Passport Programme Being Shut Down?

The European Commission took Malta to court in 2022, arguing that the programme allowed people with no genuine connection to the country to gain EU citizenship purely through financial means.

In its ruling, the ECJ stated that: “A member state cannot grant its nationality – and indeed European citizenship – in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction.”

While EU member states have control over their citizenship laws, the court highlighted that Malta’s scheme undermines mutual trust between member states. It pointed out that true citizenship should be based on a real bond between the applicant and the nation, not simply on monetary investment.

Malta’s Response to the EU Ruling

Despite the court’s clear position, Malta has defended the programme. The government maintains that the golden passport scheme complies with EU treaties and serves as a legitimate tool to attract high-value investment to the country.

However, the ECJ’s decision is binding. Malta will now be forced to dismantle the scheme or face legal consequences, including potential financial penalties or restrictions on its participation in EU initiatives.

How Will This Impact Investors and EU Citizenship Seekers?

This ruling marks the end of the road for one of the EU’s last remaining golden passport options. Here’s how it affects stakeholders:

For Investors

Those planning to apply through Malta’s programme will likely lose this pathway to EU citizenship. They may have to look at alternative options like golden visa programmes, which offer residency (not citizenship) in exchange for investment.

For Existing Passport Holders

While the court did not rule on retroactive revocation, existing passport holders could face increased scrutiny from EU member states.

For Other Countries

The decision sends a clear warning to other nations offering similar schemes. While countries like Bulgaria and Cyprus have already suspended theirs, the ECJ’s stance reinforces the EU’s push to phase out such programmes entirely.

EU’s Crackdown on Citizenship-for-Sale

The EU has long expressed concern over golden passport programmes. Critics argue that they allow wealthy individuals to “buy” European citizenship without any real commitment to the continent’s values, economy, or society.

With growing security and ethical concerns, especially in light of geopolitical tensions and financial crime risks, the EU is pushing for stronger regulation or outright bans on such schemes.

What’s Next for Citizenship Investors?

While Malta’s programme is shutting down, alternatives still exist:

1. Golden Visa Programmes: Countries like Portugal, Greece, and Spain offer residency permits (not citizenship) through real estate or business investment. These allow long-term stay and potential citizenship after several years of residence.

2. Naturalisation Routes: Investors may also explore traditional routes to citizenship through long-term residence, marriage, or employment.

For those focused on global mobility, Caribbean nations like Saint Kitts and Nevis or Dominica continue to offer fast-track citizenship-by-investment, although these do not provide EU benefits.

Conclusion

The EU’s highest court has drawn a clear line: citizenship cannot be bought. Malta must now dismantle its golden passport programme, aligning with broader European values of solidarity and mutual trust. While this ends a quick route to EU citizenship, it also reinforces the integrity of the European Union’s shared identity.