May 1st, 2025 at 05:22 am

Malta to End Golden Passport Scheme Amid Criticism

Malta must end its golden passport scheme, according to a ruling from the European Court of Justice (ECJ). This decision comes after concerns that the program violates EU law by granting citizenship without genuine national ties.

For years, the golden passport scheme allowed wealthy individuals to gain Maltese and EU citizenship by investing around €1 million (approximately $1.14 million) in the country. This ruling marks a significant setback for Malta, one of the last EU nations still offering such citizenship-by-investment options.

Overview: Golden Passport Programme

Golden passport programmes, or citizenship-by-investment (CBI) schemes, enable foreign nationals to acquire a country’s citizenship in exchange for a considerable financial investment. In Malta’s case, successful applicants received not only Maltese nationality but also EU citizenship. This provided visa-free access to over 180 countries and the right to live, work, or study anywhere in the EU.

These programs have attracted wealthy individuals, especially from countries with travel restrictions. However, they have faced criticism for potential corruption, money laundering, and national security issues.

Why Is Malta’s Scheme Being Discontinued?

The European Commission took Malta to court in 2022. They argued that the scheme allowed individuals with no genuine ties to the country to obtain EU citizenship through financial means. The ECJ ruled that “a member state cannot grant its nationality in exchange for predetermined payments or investments.” This ruling emphasizes that true citizenship should be based on a real connection to the nation, not simply monetary transactions.

While EU member states can set their citizenship laws, the court highlighted that Malta’s scheme undermines trust among member states.

Malta’s Reaction to the Ruling

Despite this ruling, Malta has defended its golden passport programme. The government claims it complies with EU treaties and serves as a valid tool for attracting investments. However, the ECJ’s decision is binding. Malta must now dismantle the scheme or face legal repercussions, including financial penalties.

Impact on Investors and EU Citizenship Seekers

This ruling effectively ends one of the last pathways to EU citizenship through investment. Here’s how it impacts various stakeholders:

For Investors

Those hoping to apply through Malta’s programme will likely lose this option for EU citizenship. They may have to explore alternatives like golden visa programmes, which offer residency rather than citizenship in exchange for investment.

For Existing Passport Holders

While the court did not address the revocation of existing passports, current holders might face increased scrutiny from EU member states.

For Other Countries

The ruling serves as a warning to nations offering similar schemes. Countries such as Bulgaria and Cyprus have already suspended their programs. The ECJ’s stance strengthens the EU’s initiative to phase out these citizenship-for-sale options.

EU’s Crackdown on Citizenship-for-Sale

The EU has long expressed concerns over golden passport programmes. Critics argue these schemes allow wealthy individuals to purchase citizenship without a real commitment to European values. Given rising security and ethical concerns, the EU is pushing for stricter regulations or outright bans on such programmes.

Alternatives for Citizenship Investors

While Malta’s programme is closing, other options remain:

• Golden Visa Programmes: Countries like Portugal, Greece, and Spain offer residency permits through real estate or business investments. These can lead to citizenship after several years of residence.
• Naturalisation Routes: Investors might also pursue traditional citizenship routes, including long-term residence, marriage, or employment.

For those seeking global mobility, Caribbean nations like Saint Kitts and Nevis or Dominica continue to offer fast-track citizenship-by-investment options, though these do not provide EU benefits.

Conclusion

The EU’s highest court has made a firm statement: citizenship cannot be purchased. Malta must dismantle its golden passport programme, aligning with European values of solidarity and mutual trust. Although this ends a quick route to EU citizenship, it reinforces the integrity of the EU’s shared identity.