The European Union's highest court declared on Tuesday (29) that so-called “golden passports” — schemes that grant citizenship in exchange for investments — are illegal under European law.
The Court of Justice of the EU ruled following a case brought by the European Commission against Malta, which began in 2022. The country allowed the granting of citizenship to non-European foreigners upon payment or application of pre-determined amounts.
“The acquisition of Union citizenship cannot be the result of a commercial transaction,” the court said. The ruling is final and requires Malta to suspend the programme, under penalty of financial sanctions.
While member states retain the sovereign right to set criteria for granting nationality, the court stressed that this must be done in accordance with the bloc's rules. The Maltese practice, the court said, undermines mutual trust between EU countries. UE.
Most of the scheme’s beneficiaries came from Russia and China. After the invasion of Ukraine in 2022, Malta began rejecting applications from Russians and Belarusians. Countries such as Cyprus and Bulgaria have also adopted similar schemes in the past, but have since discontinued them.
Scheme weakens cooperation between countries
The court also highlighted that transforming citizenship into a commercial product violates the principle of sincere cooperation between EU countries. With the passport Maltese, foreigners gained access to the entire European area, including for residence and business purposes.
The decision represents a victory for the European Commission, which seeks to standardize and protect the bloc's values. The verdict could impact similar legislation in other countries.
Italy offers a residency by investment program, known as Investor Visa ou Italian Golden Visa. Although it does not grant immediate citizenship, this program allows foreign investors to obtain legal residency in Italy, with the possibility of applying for citizenship after a period of continuous residence.
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