The European Court of Justice delivered a groundbreaking verdict on Tuesday, mandating Malta to immediately cease its controversial golden passport program.
The court ruled that the scheme, which granted EU citizenship to wealthy foreigners in exchange for €1 million investments ($1.14 million), fundamentally violates European Union law.
This decisive judgment comes after the European Commission initiated legal proceedings against Malta in 2022, challenging a program that critics argue turned EU citizenship into a commodity.
EU Court Condemns “Commercial Transaction” of EU Citizenship
In its scathing ruling, the Luxembourg-based court emphasized that while member states retain sovereignty over nationality decisions, Malta’s investor citizenship program breached the foundational principle of mutual trust between EU nations.
“The sale of nationality through predetermined payments reduces citizenship acquisition to a mere commercial transaction,” the judgment stated. The court further argued that such practices undermine the essential bonds of solidarity and good faith required among member states and their citizens.
Despite Malta’s persistent claims of treaty compliance and its 2022 suspension of the scheme for Russian and Belarusian nationals following Ukraine’s invasion, the court found these adjustments insufficient.
The legal battle traces back to October 2020 when the European Commission first launched infringement procedures against Malta’s citizenship by investment program. After years of negotiations and minor revisions failed to address core concerns, the matter escalated to the EU’s highest court.
Ripple Effects Expected Across EU Citizenship Investment Programs
This landmark decision sets a powerful precedent that may force other EU members operating similar schemes to reconsider their programs.
This ruling specifically targets Malta’s Individual Investor Program, which since 2014 has approved over 2,000 main applicants, generating more than €1 billion in revenue.
Legal experts suggest the judgment could spark renewed scrutiny of residency-by-investment programs that stop short of offering full citizenship but still provide EU access.
