Malta's fast-track “golden passport” scheme violates EU law, top court rules

The European Court of Justice (ECJ), the EU's highest court in Luxembourg, has ordered Malta to end its citizenship-by-investment scheme, saying it violates European Union law.

"A Member State cannot grant its nationality — and indeed European citizenship — in exchange for predetermined payments or investments," the court wrote in a news release.

"This essentially amounts to rendering the acquisition of nationality a mere commercial transaction," it added.

Malta is the only EU country that still has a so-called "golden passport" program, which has been challenged by EU institutions for years. Cyprus ended its citizenship-by-investment scheme in 2020, while Bulgaria's parliament voted to end a similar one in 2022.

Malta’s citizenship-by-investment scheme

When Malta amended its citizenship law in 2020, to allow investors who meet a list of financial requirements to apply for Maltese citizenship after living in the country for 12 months, the European Commission lodged a complaint against the EU member.

The scheme’s requirements include owning a property worth €700,000 or paying annual rent of at least €16,000, making a substantial contribution to the Maltese government and donating to a non-governmental organisation.

More specifically, according to the Maltese official website malta-citizenship.info, the country's citizenship regulations require the following investments:

• Direct investment of €600,000 (36 months residency option) or €750,000 (12 months residency option). Dependents (if any): €50,000
• Philanthropic donation of €10,000 to a Malta-registered non-profit organisation
• Property rental or purchase: €16,000 per year if rented, or €700,000 if purchased

Additional expenses include:

• Residence Permit Fee: €5,000. Each dependent: €1,000
• Residence Card: €27.50 per card
• Citizenship Eligibility Due Diligence Fee: €15,000. Each dependent aged 12 and over: €10,000
• Citizenship Eligibility Administrative Fee: €1,000 per applicant
• Citizenship Administrative Fee: €500 per applicant 

Malta "must comply with the Court's judgement without delay," the ECJ said. If the country fails to do so, the European Commission may file another action seeking financial penalties.

Maltese government reaction

The Maltese government said in a statement that it would respect the court's decision while it studied the "legal implications" of the ruling. It defended the program, saying it had brought €1.4b to the island nation since 2015.

Joseph Muscat, the former prime minister who introduced the program, posted on Facebook that the ruling was "politically motivated" and that Malta's program should be reformed rather than scrapped.