EU citizenship is no longer on sale

The « Golden Passport » program in the EU has now been detained by the highest court. But there may be other ways for countries to make money.

He has worked for decades for this. However, Manuel Delia could not fully believe the decision of the European Court of Justice (ECJ) on April 29. « I shouted a little, » he told Deutsche Welles. « I was expecting bad news. »

Delia, an anti-corruption blogger and executive leader of the Maltese organization of Repubblika Civil Society, has long campaigned against the Malta government’s program that provided citizenship for foreign investors. Malta was the last EU country offering these so-called « golden passports », as these schemes were closed in Bulgaria and Cyprus.

The decision, he says, justifies the work of his colleague and friend Daphne Caruana Galizia, the killed Maltese journalist who reported against corruption and was among the first to highlight the dangers of the program.

« Gold Passports » simply a « commercial transaction »

In 2022, the European Commission filed a lawsuit against Malta because of its practice of granting citizenship based largely on the investments of foreign nationals in real estate, arguing that EU citizenship recipients should show a « real connection » with the country that gives the passport, not just a financial commitment.

But Delia was expecting bad news because an opinion published by the ECJ Attorney General in October 2024 was in favor of the Maltese government’s position. The Court of Justice often follows the opinions of its general lawyers, but not this time.

The court found that Malta’s policy made citizenship a « simple trade transaction » and that « practice does not make it possible to establish the necessary link of solidarity and good confidence between a member state and its citizens, or to ensure mutual trust between the Member States. »

Delia said the support of the decision was good because it was based on a « value, a principle, solidarity » between EU member states, as everyone with a Maltese passport has access to the rest of the EU.

Where do those who get Malta’s citizenship come from?

Delia said the court’s ruling was « really based on evidence because this scheme cannot be justified by the fact that it brings money ».

« Citizenship cannot be sold, it is much more valuable than money, » Delia said.

Since the beginning of the program, Delia and other observers have asked questions about how controlled demands of stay by the Maltese authorities, as many investors were not present in the country as required. In some cases, it was not even clear whether their purchases were really for accommodation and housing in this country.

Data obtained from the Daphne Caruana Galizia Foundation revealed that Chinese investors get 9 out of 10 gold visas. But these figures were higher than the number of Chinese citizens reported as residents of Malta according to population census data. This suggested « that at least half of them are not using the golden visa to live in Malta. »

One door closes, others remain open

Malta’s Prime Minister, Robert Abela, defended the scheme in his country after the decision. In a public statement he said Malta brought over 1.4 billion euros. He said he would reaffirm the system to align the court ruling.

« As always, the Malta government respects the decisions of the courts. The legal implications of this decision are being studied in detail, so that the regulatory framework on citizenship can be adapted to the principles set out in the decision, » he said.

If you exclude purchasing passports, other ways will be found to buy them in the Schengen area, where there is great interest. « Golden visas » operate on the same principles as passport programs, allowing residence permits for purchasing wealth or other major investments.

Henley & Partners – which facilitated the Maltese Passport Program – currently lists 31 countries among its clients offering « Investment Residence » scheme. Half of them are in the EU. « This still gives access and freedom to those in the EU, » Anna Terrone by Transparency International notes.

Following the court ruling, European Commission spokesman Markus Lammert has expressed « serious concerns » with « Golden Visa » programs. « Such schemes increase insecurity, money laundering, tax evasion and the dangers of corruption, » Lammert said.

He said EU laws against money laundering « require that member states operating with these schemes to monitor the risks and impose measures. » A European Parliament resolution from 2022 states that « Residence-Investing » schemes should include « standards and procedures » at the EU level to increase proper care and rigorous data controls for applicants as well as the source of their wealth.

But their implementation is left in the hands of the Member States.

The moment for the change

Terrone hopes that now is the time for change. « The reasoning can probably extend to the gold visa program as well, » Terone said. Regarding solidarity and security among EU countries, Terrone said a joint effort was needed to keep out of « corrupt and rich individuals who have received their money in dubious ways ».

For Delian, the court’s ruling is personal and is about persons as citizens of Malta. Delia said that citizenship is a recognition of a kind of contract between individuals and the state, it is a basis where persons are obliged to live together on the basis of solidarity and recognition of laws. « And when this issue puts a price, then it reduces this principle. »/DW