Malta’s controversial golden passport scheme, which allows wealthy foreigners to buy citizenship in exchange for significant financial investments, has been declared illegal by the European Union’s top court. The ruling, handed down on Tuesday, April 29, 2025, declared that the scheme violates EU law by turning the acquisition of nationality into a commercial transaction.
The scheme, which grants citizenship to individuals in exchange for a €600,000 investment, a property purchase or rental, and a €10,000 charitable donation, was challenged by the EU Commission in 2022. The EU Court of Justice ruled that this program undermines the integrity of EU citizenship and does not meet the requirements for acquiring nationality.
Malta’s government has yet to respond to the decision, though former Prime Minister Joseph Muscat dismissed the ruling as “political” and suggested that the scheme could continue with some adjustments. However, Malta now faces the risk of heavy fines if it fails to comply with the ruling.
The court’s decision echoes concerns from the EU regarding investor citizenship schemes, which have been linked to risks like money laundering, tax evasion, and security threats. Malta had previously suspended the scheme for Russian and Belarusian nationals following the invasion of Ukraine but has defended its interpretation of EU treaties.
The ruling marks a significant development in the EU’s ongoing efforts to curb such programs across member states.
