The European Union’s top court has ruled that so-called “golden passport” schemes, which offer citizenship to wealthy foreign nationals in exchange for financial investment, violate EU law. This decision comes following a legal action initiated by the European Commission against Malta.
In its verdict, the Court of Justice of the European Union (CJEU) stated that granting citizenship through financial transactions undermines the values of EU citizenship. “EU citizenship cannot be obtained through a purely commercial arrangement,” the court said, concluding that Malta’s programme breaches EU regulations.
The ruling is legally binding, and Malta is now obligated to halt the scheme or face potential penalties. The court acknowledged that member states retain the right to grant citizenship, but emphasized that this must align with the broader framework of EU law.
The CJEU found that Malta’s scheme damages the principle of mutual trust among member states and violates the duty of sincere cooperation under EU treaties.
While Malta had previously defended the programme as a sovereign matter, it came under scrutiny for allowing affluent individuals, particularly from Russia and China, to acquire EU citizenship. Following the start of the war in Ukraine in 2022, Malta stopped accepting applications from Russian and Belarusian nationals.
Similar investment-based citizenship schemes in Cyprus and Bulgaria have since been discontinued amid growing pressure from Brussels.
