The European Court of Justice has ruled that Malta’s “golden passport” program, which allowed wealthy foreigners to purchase citizenship, violates EU law. The court stated that while member states have the authority to determine how they grant nationality, Malta’s scheme eroded the principle of mutual trust between EU member states.
The European Commission took Malta to court in 2022, arguing that the scheme grants citizenship without ensuring a genuine connection to the country. The court agreed, stating that granting nationality in exchange for predetermined payments or investments essentially turns the acquisition of citizenship into a commercial transaction.
Malta argued that citizenship matters fall under national competence and that a “genuine link” isn’t required by EU law. However, the court emphasized that Malta’s scheme is incompatible with the nature of Union citizenship and the principle of sincere cooperation between member states.
Transparency International criticized the “golden passport” programs, asserting that they provide a safe haven for corrupt actors and other suspicious individuals to enter the EU.
Malta’s program, which has been in place since 2015, has generated over 1.4 billion euros and funded investments in social housing, healthcare, sports, and culture. Malta suspended the program for Russian and Belarusian nationals following the start of the war in Ukraine.
In the ruling, the EU’s Court of Justice said a member state cannot grant its nationality – and by extension European citizenship – in exchange for predetermined payments or investments, “as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction.”
Although each EU member state determines how they grant nationality, the court said Malta’s scheme “jeopardises the mutual trust” between member states.
- EU Court of Justice Ruling: The court ruled that Malta’s scheme violates EU law. The court stated that while member states can determine how they grant nationality, Malta’s program eroded the principle of mutual trust between EU member states and essentially commercialized EU citizenship.
- Impact of the Ruling: This ruling means Malta can no longer operate its citizenship-by-investment scheme. It also has broader implications for other member states considering similar programs.
LexCase, French Nationality & Immigration Desk. Please contact us for any assistance in France.
Ref. : Judgment of the Court in Case C-181/23
https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-04/cp250052en.pdf
