The European Union’s top court has upheld a European Commission complaint and ordered Malta to end its “golden passport” scheme, which allows citizens to obtain citizenship in exchange for investment.
The EU’s top court ruled on Tuesday that the country must end its “golden passport” scheme, which it says is incompatible with EU law, Reuters reported.
The scheme allowed wealthy foreigners to obtain a Maltese passport in exchange for an investment of around €1 million. Obtaining a Maltese passport automatically grants them the right to live in any EU country.
The European Commission filed a complaint against Malta in 2022 after launching an infringement procedure in 2020. Valletta insisted that it was within its rights and correctly interpreted the EU Treaties.
The Court noted that while member states have every right to determine the procedure for granting or withdrawing their citizenship, Malta’s “golden passport” program violated the principle of mutual trust between member states.
“A member state cannot grant its nationality – and indeed European citizenship – in exchange for predetermined payments or investments, as this essentially amounts to rendering the acquisition of nationality a mere commercial transaction. Such a practice does not make it possible to establish the necessary bond of solidarity and good faith between a member state and its citizens, or to ensure mutual trust between member states,” the court said.
Malta insisted its interpretation of EU treaties was correct. The country claimed it respected the courts and was studying how to bring its citizenship rules in line with the judgment.
Malta said that the scheme since 2015 had generated over 1.4 billion euros ($1.6 billion) and funded investments in social housing, healthcare, sports and culture.
Malta suspended its “golden passport” program for citizens of the Russian Federation and Belarus after Russia’s full-scale invasion of Ukraine but maintained it for citizens of other countries.
The Financial Times recently learned that a number of sanctioned Russians still obtained Maltese passports under the “golden visa” scheme.
In April 2025, Spain officially stopped issuing residence permits for real estate investments of more than €500,000.
Neighboring Portugal revised its “golden visa” scheme in 2023 to exclude real estate investments to overcome the housing crisis. Foreigners who want to get a residence permit can still invest their money in investment funds.
And the government of Cyprus has stripped 222 wealthy investors and their family members of their citizenship, part of an effort to repair a reputation tarnished by its “investment-for-passport” program.
