In a historic turn of events, the European Court of Justice (ECJ) declared Malta’s ‘golden passport’ initiative unlawful, effectively halting one of Europe’s last citizenship-by-investment programmes. Once valued at around €1 million, this scheme granted wealthy foreign nationals full EU citizenship rights in exchange for substantial investments.
The ECJ clarified that while each EU member state has jurisdiction over its own naturalisation processes, selling passports without authentic ties—such as residency, culture, or language—undermines the ethos of mutual trust within the European Union. The court underscored that turning nationality into a commodity conflicts with the principles of solidarity on which the EU stands.
Several reports, including from the Financial Times, revealed that some passport recipients ended up on international sanctions lists. At least 16 new citizens were politically exposed persons (PEPs) or under criminal investigation. Even members of the Saudi royal family reportedly took part, although no misconduct was substantiated in their cases.
After closing its investment-based naturalisation scheme in 2020, Cyprus remains under intense legal examination. Some observers claim that the island’s current “golden visa” programme is only a cosmetic overhaul of its previous version. Several cases related to the old scheme are still being tried in Cypriot courts.
The real estate sector in Cyprus continues to adapt to these shifts in EU policy. For additional perspectives, take a look at Auction Properties in Cyprus or explore Cheap Houses and Villas for Sale in Cyprus to keep your finger on the market’s pulse.
For further legal context, read the press release Union citizenship: the Maltese investor citizenship scheme is contrary to EU law. This milestone ruling sets a clear precedent that prevents the reinstatement of similar programmes across Europe.
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