The European Court of Justice (ECJ) has ruled that Malta’s controversial “golden passport” scheme breaches European Union law and must be halted immediately.
In a decision issued Tuesday, the EU’s top court stated, “A Member State cannot grant its nationality — and indeed European citizenship — in exchange for predetermined payments or investments.”
The court added that, “This essentially amounts to rendering the acquisition of nationality a mere commercial transaction.”
Malta’s scheme, which offers citizenship to foreign investors under specific financial conditions, has faced longstanding criticism from EU officials and anti-corruption groups, who argue that it enables white-collar crime and sanctions evasion.
The ECJ ruling follows a formal complaint filed by the European Commission over a 2020 legal amendment that allowed wealthy individuals to acquire citizenship after a year’s residence, provided they met certain financial thresholds.
These include owning property worth at least €700,000 or renting for a minimum of €16,000 annually, contributing significantly to the Maltese government, and donating to a non-governmental organisation.
The ECJ stressed that Malta “must comply with the Court’s judgment without delay,” warning that further legal action and financial penalties could follow if the country fails to act.
In response, the Maltese government issued a statement saying it would abide by the court’s decision while it reviews the “legal implications” of the judgement. It also defended the programme, stating it had generated €1.4 billion since its inception in 2015.
Former Prime Minister Joseph Muscat, who launched the initiative, dismissed the ruling on Facebook as “politically motivated,” arguing that the scheme should be reformed, not abolished.
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Malta is now the only EU country with an active citizenship-by-investment programme. Cyprus discontinued its version in 2020, while Bulgaria’s parliament voted to terminate its scheme in 2022.
Among those welcoming the court’s decision was Maltese journalist Matthew Caruana Galizia, who described it as “a win for the people of Malta and for all EU residents who have been unfairly exposed to the whims of money launderers and corrupt criminals buying their way into the EU.”
Galizia is the son of the late investigative journalist Daphne Caruana Galizia, who was assassinated in 2017 while investigating corruption in Malta.
Transparency International also applauded the judgement. The organisation’s chief, Maira Martini said, “Today’s judgement confirms that member states cannot commodify EU citizenship and operate reckless golden passport programmes… The ruling stops not only Malta from selling EU citizenship, but will also prevent other member states from doing the same.”
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