Concerns are growing over a possible resurgence of discussions around investor citizenship schemes, following the eagerly awaited ruling on Malta’s controversial “golden passport” programme.
The outcome could reignite interest in reinstating such programmes across EU states, including Cyprus, which scrapped its scheme under international pressure.
Malta’s citizenship-by-investment programme is under intense scrutiny, with the Court of Justice of the European Union (CJEU) expected to rule this week on its legality. According to the Financial Times, a ruling in Malta’s favour could open the door to renewed debates about investor naturalisation schemes, even in countries like Cyprus that had previously abandoned them.
Malta’s golden passport programme on trial
The Financial Times (FT) reports that Russian businessmen, later subject to sanctions over links to the war in Ukraine, acquired Maltese passports through the scheme, allowing them to circumvent travel bans. One Russian businessman reportedly obtained Maltese citizenship in 2015 and has since appeared on the EU sanctions list due to his business activities, which the Union claims generate significant revenue for the Russian government.
In total, seven individuals who gained Maltese nationality via the programme later found themselves subject to EU, US, or Ukrainian sanctions. The investigation further reveals that 16 politically exposed persons (PEPs) or individuals facing criminal charges also obtained Maltese citizenship.
Among the recipients were members of the Saudi royal family, although no allegations of corruption have been levelled against them.
EU reaction
The European Commission has taken Malta to the CJEU, arguing that the sale of citizenship undermines “the essence and integrity of EU citizenship.” The Commission maintains that “EU values are not for sale” and has called for an end to such practices.
The CJEU is expected to deliver its decision on Tuesday, a ruling seen as pivotal for the future of similar initiatives across Europe.
The Cyprus connection
The Financial Times also recalls Cyprus’ investor citizenship programme, which was “definitively and irrevocably terminated” in 2020 after international backlash and revelations of widespread abuse. The scheme had drawn significant concern over potential corruption risks and had been placed under the European Commission’s microscope.
Cases related to Cyprus’ golden passport scheme are still being heard in the island’s courts, and there have been suggestions that the current “golden visa” programme is a mere rebranding rather than a substantial reform.
According to the FT, a legal victory for Malta could encourage discussions in countries like Cyprus about whether such programmes could be revived under new legal frameworks.
Experts such as Eka Rostomashvili from Transparency International warn that a favourable ruling could trigger a “race to the bottom” in terms of vetting standards and transparency.
The FT notes that other European nations, including Portugal and Spain, have limited their offerings to residency permits rather than full citizenship.
They further highlight that Malta’s scheme remains the last active golden passport programme in the European Union.
