The European Court of Justice (ECJ) has ruled that the Malta golden passport scheme is illegal. Specifically, the April 29 judgment concluded that the program does not uphold the integrity of EU citizenship.
According to the ECJ, members cannot sell EU citizenship like a commodity without a genuine link to the issuing country. As a result, the ruling impacts Malta, the last EU country that offers citizenship for investment.
Malta Selling EU Citizenship
Since 2014, Malta has offered citizenship to foreign investors in exchange for about €1 million in contributions. In return, recipients gained full access to EU rights, including free movement and work across member states.
Although Malta gained over €1.4 billion through the program, critics argued it exploited EU citizenship rules. More importantly, the government did not require applicants to reside in Malta or establish any long-term ties. Therefore, the scheme faced constant pressure from the European Commission.
ECJ Ruling on Malta
The ECJ emphasized that citizenship must reflect a real connection to the country granting it. For that reason, the court found Malta’s scheme in breach of the principle of sincere cooperation.
Moreover, it stressed that selling citizenship weakens trust between member states. Although the court did not issue immediate penalties, Malta must now adjust its policy swiftly. In response, Maltese officials pledged to review the system in line with EU expectations.
Reactions from Officials and Experts
European officials welcomed the decision, saying it reaffirms core EU values of common responsibility and mutual trust. Meanwhile, legal experts noted the judgment creates a precedent for other EU countries considering similar programs.
Notably, the European Commission said it would monitor Malta’s compliance closely in the coming months. On the other hand, Maltese authorities insisted the program had followed due diligence procedures. Even so, they acknowledged the need to uphold the rule of law and protect the EU’s reputation.
Rush to Beat Malta Restrictions
In the aftermath, golden visa agents are urging clients to fast-track their applications before the EU enforces further restrictions. As a result, demand surged among high-net-worth individuals fearing the permanent closure of the scheme.
Some advisors warned delays could lead to higher costs and stricter vetting. At the same time, many investors began exploring alternative routes, including Portugal’s residency program. Still, Malta remains a preferred option due to its fast-track citizenship offer and low residency requirements.
Broader EU Implications
Clearly, the ECJ ruling may affect similar investment migration programs across the European Union. For instance, countries such as Bulgaria and Cyprus have already suspended their schemes under EU pressure.
Thus, the ruling could mark the beginning of a broader shift away from citizenship-by-investment in Europe. Furthermore, the decision reflects growing EU concern about transparency, security, and tax evasion.
Turning Point for EU Citizenship
In summary, the EU’s top court has drawn a firm line against monetizing citizenship. As a result, Malta now faces the challenge of reforming its system while preserving investor confidence. Ultimately, the ruling signals a new era in the regulation of citizenship and mobility within the EU.
Photo by Zoltan Tasi on Unsplash
