The “Golden Passport” program in Malta, which allowed non-EU nationals to obtain Maltese citizenship (and consequently EU citizenship), has been declared incompatible with EU law. This significant ruling was handed down by the European Court of Justice on April 29, concluding a legal dispute that began in 2020.
Malta’s citizenship-by-investment initiative was the last remaining program of its kind in the EU, following the termination of similar schemes in Cyprus and Bulgaria in 2020 and 2024 respectively, initiated by pressure from the European Commission.
The only investment-related programs left in EU member states are “Golden Visa” schemes, which are also facing heightened scrutiny from Brussels.
Golden Passport vs. Golden Visa – Key Differences and Similarities
A “Golden Passport” or Citizenship by Investment (CBI) program provides EU citizenship to non-EU nationals in exchange for a substantial financial investment. For instance, in Malta, an investment in real estate valued at €700,000 was sufficient for non-EU nationals to enjoy full EU citizenship rights. This has raised alarms regarding corruption, money laundering, and security risks, according to the European Parliament.
Conversely, a “Golden Visa” or Residence by Investment (RBI) program—currently active in several EU countries, including Greece—offers temporary or permanent residency in exchange for an investment. In countries within the Schengen Area, investors and their families can travel freely across Schengen nations, which include most EU member states (excluding Cyprus and Ireland), as well as Iceland, Norway, Switzerland, and Liechtenstein.
The Termination of Spain’s Program Could Increase Interest in Greece
Golden Visa programs originated in the early 2000s and gained traction following the 2008 financial crisis. By 2010, only four EU countries offered such programs, but by 2017, nearly half had adopted them to stimulate economic growth. However, many of these initiatives have been discontinued in recent years due to concerns about their effects on housing markets, as seen in Spain.
Spain’s government, led by Pedro Sánchez, plans to phase out its Golden Visa program within the year. Analysts suggest that this decision could pivot interest toward the remaining six EU countries with similar programs: Greece, Portugal, Italy, Hungary, Latvia, and Cyprus. However, since Cyprus is outside the Schengen Area, non-EU investors must adhere to regular entry protocols to travel freely within Schengen countries—potentially increasing demand for Greece and Portugal.
Legal experts in Cyprus informed newmoney.gr that while its residence-by-investment scheme allows legal residency, it does not permit employment or freedom of movement within the EU or Schengen Area.
€21.4 Billion Generated Over Eight Years for EU Member States
A report from the European Parliamentary Research Service (EPRS) reveals that over 132,000 individuals achieved residency or citizenship in the EU through Golden Visa or Golden Passport programs from 2011 to 2019, generating investments exceeding €21.4 billion. Both programs, particularly the Golden Passport, have faced close monitoring by the European Parliament and Commission since their inception.
The EU Parliament’s LIBE Committee (Civil Liberties, Justice, and Home Affairs) has advocated for the termination of citizenship-by-investment programs and greater regulation of residence-by-investment schemes. The Russian invasion of Ukraine on February 24, 2022, shortly after the LIBE report was approved, intensified these concerns.
The EU report noted that while Russian nationals did not dominate the global CBI market, they represented over 50% and 40% of citizenships granted through such programs in Cyprus (which ended its scheme in 2020) and Malta, respectively.
A Brussels-based legal expert well-versed in EU law told newmoney.gr that while “EU law dictates entry conditions for specific categories of third-country nationals, residence permits issued to investors are still governed at the national level.” However, the European Commission and Parliament assert that “a residence permit issued under an investor residence scheme in one member state has ramifications for others.” Consequently, the EU Parliament has proposed that countries with Golden Visa programs contribute ongoing payments to the EU budget based on the investment amounts collected.
Brussels: “We are Vigilant About Current Developments”
Although Golden Visa programs have not provoked as much debate as Golden Passports, the Commission is actively observing these initiatives. An EU official remarked to newmoney.gr:
“The Commission has consistently expressed serious concerns and taken actions to address the risks posed by investor residence schemes in the EU. In March 2022, in light of Russia’s invasion of Ukraine, we issued a recommendation for immediate action on both citizenship and residence investor programs.”
The anti-money laundering regulation and directive, passed in 2024 following a Commission proposal, require member states with such programs to assess associated risks and implement necessary mitigation measures. The Commission has also proposed amendments to the Long-Term Residents Directive to include stricter oversight against exploitation by third-country investors.
The Malta Case and the Conclusion of Golden Passports
In October 2020, the Commission initiated infringement proceedings against Malta. Although Malta halted its program for Russian and Belarusian nationals after the invasion of Ukraine, it continued to grant citizenship to others. On April 6, 2022, the Commission issued a reasoned opinion—the final step before escalation to the EU Court of Justice, which occurred in June.
Three years later, the EU Court definitively concluded that Malta’s 2020 citizenship-by-investment program contravened EU law, labeling it as the commercialization of EU citizenship. The Court underscored that while EU member states have the authority to establish nationality rules, they must remain consistent with EU principles.
EU citizenship provides access to a shared zone of freedom, security, and justice, grounded in mutual trust and acknowledgment of national decisions. Thus, commodifying EU citizenship via investments undermines the principle of loyal cooperation, reducing citizenship to a commercial transaction.
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