Malta's "golden passport" program, offering citizenship in exchange for investments, has been ruled unlawful by the European Union's highest court.

Malta's "golden passport" program, offering citizenship in exchange for investments, has been ruled unlawful by the European Union's highest court.

Don't Buy Your Maltese Passport with a Load of Cash: EU Top Court Strikes Down 'Golden Passport' Scheme

There's a storm brewing in the Mediterranean sea, and it isn't about the weather. The European Union's top court has officially declared Malta's much-debated 'golden passport' scheme—a program allowing foreigners to obtain Maltese citizenship and access EU rights in exchange for a hefty investment—as a blatant violation of EU law.

The scheme demands a minimum investment of €600,000, coupled with property acquisition or rental and a charitable donation. However, the European Court of Justice (CJEU) has stated that such a program turns citizenship into a mere commercial transaction, diminishing its value to a mere financial investment without any genuine connection to the country.

Malta's response? They're taking the ruling seriously, assuring they will carefully review the implications and adjust their citizenship-by-investment program to align with the court's judgment. Though they stand firm in their belief that citizenship matters are a national competence.

Since its inception in 2015, this questionable scheme has generated over €1.4 billion for Malta's national savings and investment funds. The government admitted to the wealth it derived from the program, but the court's ruling deems granting citizenship in exchange for predetermined investments as incompatible with EU law.

The EU Commission, of course, is relieved, clearly stating that "European citizenship is not for sale." Malta now faces potential fines if it refuses to abide by the ruling and terminate the scheme. The ruling does not, however, revoke existing citizenships granted under the program.

As it stands, the separate Malta Permanent Residence Programme, a residency-by-investment scheme, remains operational. This program, unlike the scrapped citizenship-by-investment scheme, does not grant citizenship or EU-wide rights beyond residency in Malta.

Interestingly, the court's verdict contradicts an earlier opinion by Advocate General Anthony Collins, who argued that EU law does not necessitate a "genuine link." Malta, in its defense, criticized the court for ignoring this advice, pointing out that other EU states are also running similar schemes. In a bid to address growing EU concerns over security, corruption, and financial crime risks, Malta suspended applications from Russians and Belarusians in 2022.

So, if your plan was to invest your way to a Maltese passport, you better think again. The golden passport has officially lost its shine, at least within the confines of EU law.

29th April 2025 Update: Following the ECJ ruling, Malta's Citizenship-by-Investment (CBI) program has been declared unlawful and must be terminated. The court found Malta in breach of EU law for "commercialising EU citizenship" by granting it based on financial investments without requiring a genuine link to the country. [Sources: 2, 3, 4]

Key details:- Immediate impact: The ruling obligates Malta to dismantle its CBI scheme. The government stated it would study the judgment to align its citizenship framework with EU principles. [3]- Validity of past decisions: Malta clarified that citizenship granted under existing or prior rules remains legally valid. [3]- No further operations: While the ruling does not retroactively revoke citizenship, it bars Malta from continuing the program. Post-ruling, new applications under the CBI framework would violate EU law. [4]

The separate Malta Permanent Residence Programme (MPRP)—a residency-by-investment scheme— remains operational as of January 2025 updates. This program does not grant citizenship or EU-wide rights beyond residency in Malta. [1]

EU stance: The Commission emphasized that "European citizenship is not for sale," and Malta must now implement the court's decision. No legal avenue exists for Malta to continue its CBI program under current EU law. [3, 4]

• The European Union's top court declared Malta's Malta's 'golden passport' scheme, which allows foreigners to obtain Maltese citizenship in exchange for a significant investment, as a violation of EU law in 2022.
• Since theECJ ruling, Malta's Citizenship-by-Investment (CBI) program has been deemed unlawful and must be terminated, as of the 29th April 2025 update.
• The European Commission has made it clear that "European citizenship is not for sale," and Malta now faces potential fines if it continues with its CBI program.
• Despite the termination of the CBI program, the separate Malta Permanent Residence Programme (MPRP)—a residency-by-investment scheme—remains operational. This program does not grant citizenship or EU-wide rights beyond residency in Malta.

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