EU Court Orders Malta to Shut Down Its Golden Passport Scheme
The European Union’s top court has ruled that Malta must put an end to its “golden passport” program, a scheme that allowed wealthy individuals to acquire Maltese (and thus EU) citizenship in exchange for a significant financial investment.
According to Maltese citizenship law, it allows investors who meet a list of financial requirements to apply for Maltese citizenship after living in the country for 12 months.
On April 29, the European Court of Justice (ECJ) declared that Malta’s citizenship-by-investment program breaches EU law, stating that nationality and EU citizenship cannot be treated as commodities. Even after Malta introduced reforms, the court found that the scheme still violated core principles of the Union.
“The acquisition of Union citizenship cannot result from a commercial transaction,” said the judge presiding over the case in Luxembourg. “Such a practice undermines the bond of trust between Member States and their citizens.”
The court emphasised that Malta’s program failed to establish the necessary connection between the applicant and the country, a key requirement for naturalization within the EU. As a result, the ECJ concluded that Malta had not fulfilled its obligations under EU law.
Malta Responds to the Ruling
In a brief statement, the Maltese government said it would respect the court’s decision while assessing its legal implications. However, it also defended the scheme, pointing out the significant economic benefits it brought to the country.
Since its introduction in 2015, Malta’s golden passport program has generated approximately €1.4 billion (around $1.6 billion) in revenue. These funds have supported national development projects and helped boost Malta’s public finances.
Benefits That Attracted Investors to Malta’s Golden Passport Scheme
Despite its legal challenges, Malta’s program was one of the most sought-after citizenship-by-investment options in Europe.
Here’s why it gained popularity among international investors:
✅ Full EU Citizenship
Applicants gained Maltese citizenship, which includes the right to live, work, and study in any of the 27 EU countries. It also offered visa-free or visa-on-arrival access to over 180 countries worldwide.
✅ Business and Investment Access
EU citizenship opened doors to new markets across Europe, making it easier to establish businesses, invest, and access banking and financial services in the EU.
✅ Family Inclusion
Applicants could include close family members—such as spouses, children, and dependent parents—under a single application, providing security and opportunity for the whole household.
✅ Stable and Safe Environment
For high-net-worth individuals from politically or economically unstable regions, Maltese citizenship offered a safe haven in a democratic and stable EU Member State.
✅ High Quality of Life
Malta’s warm climate, English-speaking population, excellent healthcare, and beautiful Mediterranean setting made it an attractive destination for relocation and retirement.
✅ Revenue for Malta
From the government’s perspective, the scheme provided a significant boost to public finances, helping fund national infrastructure and social initiatives.
What’s Next for Malta and Citizenship Investors?
While Malta is expected to comply with the EU court’s decision, it may explore alternative ways to attract foreign investment, possibly through residency programs or restructured economic schemes that align with EU law.
It is not yet clear when Malta will implement the EU judgment on its investment scheme.
Immigration lawyers and financial advisers are now urging clients to fast-track their applications for European golden visa programs, following the EU’s top court decision to shut down Malta’s citizenship scheme.
If you’re considering citizenship or residency options in Europe, it’s more important than ever to stay informed about legal developments and shifting regulations.
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