The European Court of Justice has ruled Malta’s citizenship-by-investment scheme, commonly known as the “golden passport” programme, violates EU law. The court found the scheme, which granted Maltese — and thereby EU — citizenship to individuals in exchange for significant financial contributions, amounted to a commercialisation of EU nationality and undermined mutual trust among member states.
The ruling followed legal action launched by the European Commission in 2020. The Commission argued that the scheme posed risks related to money laundering, corruption, and security, citing investigative findings that some applicants spent minimal time in Malta and left properties unoccupied.
While Cyprus shut down its similar programme, Malta had defended its right to grant citizenship. In response to the judgment, Malta said it would review its regulatory framework. The European Commission welcomed the ruling, stating that EU citizenship should not be for sale and called for all such schemes to be abolished.
