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Eu court rules against 'golden passport' schemes for wealthy investors

Tuesday 29 April 2025 - 17:15
Eu court rules against 'golden passport' schemes for wealthy investors
By: Dakir Madiha
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The European Union's highest court has declared that "golden passport" schemes, which allow affluent foreign investors to acquire EU citizenship, are illegal. This ruling, issued on Tuesday, follows a legal challenge brought by Brussels against Malta, asserting that such programs violate EU law.

In its decision, the EU's Court of Justice emphasized that citizenship cannot be acquired through commercial transactions. "The acquisition of Union citizenship cannot result from a commercial transaction," the court stated, reinforcing that Malta had breached EU regulations.

Brussels initiated the legal proceedings in 2022 over Malta's citizenship program, which permitted non-Europeans to essentially purchase Maltese citizenship—and subsequently EU citizenship—through specific financial contributions. The court's ruling is binding, compelling Malta to comply or face substantial fines.

The court clarified that while individual member states possess the authority to determine their nationality criteria, this freedom must align with EU law. The Maltese scheme was deemed to "infringe the principle of sincere cooperation" and undermine mutual trust among member states regarding the granting of nationality.

Notably, wealthy individuals from Russia and China had taken advantage of this scheme to secure EU citizenship. Similar initiatives had previously existed in Cyprus and Bulgaria, but both countries ultimately abandoned them.

In response to geopolitical tensions, Malta halted applications for "golden passports" from Russian and Belarusian nationals following Russia's invasion of Ukraine in 2022, as part of Europe's broader effort to restrict access for Kremlin-affiliated individuals.

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