The European Court of Justice has ruled that Malta’s ‘Golden Passport’ scheme, which enables wealthy individuals to purchase Maltese citizenship, contravenes EU law and must be abolished.

Malta was initially taken to court by the European Commission in 2022 due to its use of the scheme.

The Golden Passport regime allowed foreign nationals to invest approximately €1m in exchange for a Maltese passport, and therefore the right to work and live in any EU country.

The court stated that EU citizenship cannot be obtained through a financial transaction and ordered Malta to terminate the programme or risk a fine.

"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," the court said.

"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 Maltese government said it was studying the legal implications of the judgment so it can bring its regulatory framework on citizenship in line with the judgment.

Malta was the final EU member state with an investment-for-citizenship scheme, after Cyprus and Bulgaria abolished similar regimes in 2020 and 2022 respectively.

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