Malta's "golden passport" initiative, which allowed individuals to obtain citizenship through significant financial contributions, has been ruled illegal by the EU's top court. The European Commission brought the case against Malta in 2022, arguing that the scheme enabled foreign nationals to secure a Maltese passport—and thus the right to live and work anywhere in the EU—in exchange for hefty investments, including a minimum of €600,000 and other financial commitments.
The court's ruling emphasized that citizenship acquisition cannot be treated as a commercial transaction. Authorities in Malta, however, have yet to issue an official response, with former Prime Minister Joseph Muscat labeling the judgment "political" and suggesting possible adjustments to the existing program.
Failure to comply with the ruling could result in significant financial penalties for Malta. The court also mentioned that while each EU country retains the authority to set its own citizenship criteria, Malta's approach threatens mutual trust among EU nations.
This decision contrasts sharply with an earlier opinion from the court's Advocate General, Anthony Collins, who had asserted that the EU had not sufficiently demonstrated a legal requirement for a "genuine link" between individuals and the country of citizenship.
The EU has previously advised member states to suspend similar investor citizenship schemes due to concerns over security, money laundering, and other corrupt practices, spotlighting potential risks inherent in such initiatives.
