The EU Court of Justice has ruled that Malta’s “golden passport” scheme violates European law and ordered the country to abandon the practice.
“A Member State cannot grant its nationality — and indeed European citizenship — in exchange for pre-determined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction,” the court said.
In 2023, the European Commission took Malta to court over its programme of granting citizenship in exchange for investment. Brussels considered that the sale of passports undermined the “essence of EU citizenship,” which is based on mutual trust between member states. People who obtain Maltese citizenship are entitled to live and work in any EU country and vote in European elections.
Under pressure from Brussels, Bulgaria and Cyprus had previously cancelled their “golden passport” programmes. Malta, however, decided only to tighten its conditions, stating that citizenship would only be granted after one to three years of residency. The EU believes that such schemes create risks of corruption, money laundering and tax evasion.
Malta approved its “golden passport” programme at the end of 2013. Holders of Maltese citizenship can move freely throughout the EU. To obtain citizenship of the island state, it was necessary to contribute between €600,000 and €700,000 to the national investment fund, purchase real estate worth at least €700,000 (which can only be sold after five years) or rent accommodation for at least five years at a rate of €16,000 per year, as well as make a charitable donation of €10,000 to a non-governmental organisation.
Applicants for citizenship are not required to live in Malta: they will need to visit the country to provide biometric data, submit an application and attend a personal interview.
