EU Court Orders Malta to End “Golden Passport” Scheme

The European Union High Court has ruled against Malta’s controversial “golden passport” scheme, demanding its immediate cessation. This decision, delivered Tuesday, stems from a 2020 application by the European Commission challenging the legality of Malta’s citizenship-by-investment program.

The Court determined the scheme constitutes “transactional naturalisation,” violating the principle of sincere cooperation among EU member states. While acknowledging national sovereignty in defining citizenship requirements, the Court emphasized that such powers cannot undermine the integrity and value of EU citizenship itself. Malta’s scheme, allowing citizenship acquisition through fixed payments, was deemed a “commercialisation” of EU nationality, contravening Articles 20 TFEU and 4(3) TEU.

Transparency International hailed the ruling, asserting its impact extends beyond Malta, preventing other member states from potentially exploiting similar schemes that offer haven to corrupt actors.

Malta has acknowledged the verdict and is reviewing its legal implications, pledging to revise citizenship regulations accordingly. Existing passports granted under the scheme, reportedly generating €1.4 billion for the nation, remain valid. The program previously offered residency, work, and study rights within the EU, extending citizenship to family members based on investments ranging from €600,000 to €750,000, property purchases, and philanthropic donations.