Malta violated EU law by selling citizenship to wealthy foreigners with no real ties to the country, the EU’s top court ruled Tuesday, siding with the European Commission after years of warnings. The controversial program allowed third-country nationals to effectively purchase Maltese – and therefore EU – passports through a mix of property acquisitions, investments in approved financial instruments, and a €10,000 donation to a local NGO, as detailed by Transparency International.

Though citizenship typically falls under national jurisdiction, the court found Malta’s scheme breached EU principles by “commercialising” EU citizenship and weakening the mutual trust and reciprocity expected among member states. Holders of EU passports gain broad privileges across the bloc, including the right to live and work in any member state and vote in local and regional elections.

valletta
Valletta, Malta.

The Commission took Malta to court over concerns that the program undermined the integrity of EU citizenship. “EU values are not for sale,” former Justice Commissioner Didier Reynders warned in 2022.

Although Malta suspended applications from Russian and Belarusian nationals after Russia’s full-scale invasion of Ukraine, the wider cash-for-passport scheme remained active. Following this ruling, Malta must comply immediately or face additional legal action and possible financial penalties from the European Commission.