EU Court Rules Against Malta’s Citizenship-by-Investment Scheme

Malta’s controversial Citizenship-by-Investment program, often referred to as the "Golden Passport" scheme, has come under renewed scrutiny following a decisive ruling by the European Union Court of Justice. The court found that Malta had failed to uphold its obligations under EU law by offering citizenship in exchange for financial investments without genuine ties to the country.

Golden Passport Scheme Under Fire

The program, designed to attract wealthy foreign nationals, grants Maltese — and by extension EU — citizenship in return for substantial financial contributions and other formal requirements. However, the European Commission raised serious concerns over the integrity of such schemes, warning they could be exploited and undermine the fundamental values of the EU.

Court Sides with Commission

According to a Euronews report, the EU’s top court sided with the Commission, stating that Malta’s program violated EU treaties. The judgment obliges Malta to bear the legal costs of the proceedings. The ruling affirms that granting EU citizenship should reflect a genuine connection to the country, rather than serving as a transactional benefit.

Contradiction to Earlier Legal Opinion

This judgment runs contrary to the non-binding opinion issued in October by EU Advocate General Anthony Michael Collins. He had previously downplayed the Commission’s objections, arguing that Malta’s program did not necessarily conflict with EU law. The court’s final ruling, however, firmly supports the Commission's stance.