Malta Golden Visa | Another Golden Ticket Revoked

The European Union’s campaign against the sale of citizenship has been bolstered by a landmark ruling that deemed Malta’s “golden passports” program violates the EU’s rules on the subject.  

Courts Rule Golden Visas are a Violation of Trust

The scheme, which allowed wealthy individuals to invest at least 600,000 euros in exchange for EU citizenship, had been targeted by the European Commission over security concerns. The EU’s highest court ruled in favour of the European Commission which argued, “Investor citizenship schemes undermine the essence of EU citizenship and have implications for the Union as a whole.”  The Commission claimed that Russia’s invasion of Ukraine highlighted the issue of purchased citizenship given EU citizens have the right to free movement, access to the EU internal market, and the right to vote and be elected in European and local elections. 

The court ruling states “the commercialization of the granting of the status of national of a Member State and, by extension, Union citizenship” and is thereby unlawful as it violates “good faith and mutual trust” between EU member countries, and “is incompatible with the conception of that fundamental status that stems from the EU Treaties, as well as with the principle of sincere cooperation enshrined in Article 4(3)” of the Union treaty. 

Malta, which had already suspended its golden passport scheme for Russian and Belarusian citizens after the invasion of Ukraine, said it would respect the court’s decision on the “golden passports” program, but added that passports legally granted prior to this ruling would remain valid. 

Malta’s Golden Visa Revocation Like Others in the EU

The fall of Malta’s golden passport program is the latest in an ongoing shift that has seen Europe and its member nations move away from passive investment schemes in recent years. In 2020, Cyprus ended a similar program, while Bulgaria shuttered its golden passport offering in 2022. Malta had been the last remaining country in the bloc to offer citizenship in direct exchange for a predetermined payment or investment. 

While Europe still has several nations that run residency-by-investment schemes known as Golden Visas, these programs are under increased scrutiny from both the EU and each country’s respective citizenship. The European Commission’s greatest concerns about the programs have focused on security and money laundering risks while domestic criticism has taken aim at the effects on housing markets and culture.  

As a result, many countries have ended or significantly amended their Golden Visa programs. Ireland closed its Golden Visa program in 2023 citing ethical and transparency issues. That same year, Portugal eliminated the real estate component of its program in order to curb property speculation and rising housing prices. Most recently, Spain ended its Golden Visa program last month in direct response to a distortion in its housing market. 

Active Investment like the HQA® Program is the Future 

Though many Golden Visa proponents refute the claims of critics, the trend in Europe is very clear: individual countries and the bloc itself do not see enough financial upside to diminish the risks associated with the programs. Instead, more nations are incorporating active investor programs into their immigration portfolios.  

Portugal provides a good example of this transition. Though the country still offers a more restricted Golden Visa program, its governments have been supportive in growing the HQA® Program, which attracts highly accomplished international talent to Portugal. Not only does the HQA® Program inject immediate foreign direct investment into Portuguese research universities and startups, but it also infuses the country’s innovation sector with experienced, successful entrepreneurs. From knowledge exchange to technology transfer to opportunity creation, program participants generate sustainable benefits for Portugal that compound over time.   

As passive investment schemes like the Golden Visa continue to dwindle across Europe, expect other countries to adopt active investment approaches like Portugal’s HQA® Program to enhance their current immigration practices.  

Learn more about the HQA® Program