key takeaways

• the court found that malta’s scheme, which grants eu citizenship in exchange for investment, undermines the principle of mutual trust between member states.
• malta must end its “golden passport” program by april 29, 2025 [[2]].
• the program had been criticized for potential links to crime, corruption, and sanctions evasion [[2]].

the court’s reasoning

the court stated that a member state cannot be nationality – and even european citizenship – in exchange for predetermined payments or investments as this is essentially the case that the acquisition of nationality only becomes a commercial transaction. the court added that such practices do not make it possible to establish the necesary bond of solidarity and good faith between a member state and its citizens or to ensure mutual trust between member states.

program details

the malta “golden passport” program offered foreigners the right to live and work in any european contry in exchange for a ample investment. the requirements included:

• a one-off investment of at least 600,000 euros in the country.
• buying or renting a home.
• donating 10,000 euros to a charity.
• residing in the country for three years (or one year with a 750,000 euro investment).

background

the european commission challenged malta’s “golden passport” program as early as 2022. in october 2020, the commission initiated an infringement procedure, but it did not result in significant changes. malta suspended the program for russian and belarusian nationals following the war in ukraine but continued it for other nationalities.

faq

what is a “golden passport” program?

it is a scheme where a country offers citizenship to foreign investors in exchange for a significant financial contribution.

why did the eu court rule against malta’s program?

the court found that it undermines the principle of mutual trust between eu member states and treats citizenship as a commercial commodity.

when does malta have to end the program?

by april 29, 2025 [[2]].