EU bans Malta from selling citizenship: Court finds 'golden passport' program illegal

The European Court of Justice has made a historic ruling ordering Malta to completely end its citizenship-by-investment programme. The judges ruled that selling EU passports was contrary to the principles of European law and undermined trust between member states.

The essence of the conflict

Malta's programme, in place since 2014, allowed foreigners to obtain citizenship for investments of €600,000 or more, without the requirement for long-term residence. This gave them the right to move freely, work, and vote in elections throughout the EU. However, the court stressed that citizenship cannot be a commodity: “The state may not turn it into a commercial transaction,” the resolution reads.

Malta's response and precedents

In 2020, Malta tightened the terms of the programme, introducing mandatory residence for a period of 1 to 3 years and increasing checks. However, the court considered these measures insufficient to eliminate the fundamental conflict with EU law. Previously, under pressure from Brussels, similar programs were closed by Cyprus (2020) and Bulgaria (2022), which indicates the EU's systemic fight against the "passport business".

Consequences of the decision

The cancellation of the program puts an end to the dispute between Malta and the European Commission, which has lasted for several years. Now the country is obliged not only to stop issuing passports, but also to review already approved cases. This decision strengthens the EU's position in protecting the value of citizenship, but raises the question of the fate of thousands of investors who were counting on a European passport.

Analysts believe that pressure on countries with "golden visas" (residence permits for investment) will also increase, which could lead to a tightening of migration policy in the EU.