The European Court of Justice (ECJ) ruled on April 29 that Malta's program offering citizenship to foreign investors is illegal, effectively ending the last "golden passport" scheme in the European Union. The court found that Malta's policy made nationality a "mere commercial transaction" that fails to establish the necessary bond between a member state and its citizens.

Manuel Delia, anti-corruption blogger and executive officer of the Maltese civil society organization Repubblika, expressed surprise at the ruling. "I screamed a little," he told. "I was expecting bad news." Delia had campaigned against the program for years alongside his colleague Daphne Caruana Galizia, a Maltese journalist murdered while investigating corruption.

The European Commission brought action against Malta in 2022, arguing that EU citizenship recipients must show a "genuine link" with the country granting the passport, not just financial commitment. The ruling contradicted an earlier opinion by the ECJ's advocate general that had favored Malta's position.

According to data acquired by the Daphne Caruana Galizia Foundation, Chinese investors accounted for 90% of golden visas issued by Malta. However, census records showed fewer Chinese nationals living in Malta than visas granted, suggesting at least half were not using their golden visas to reside in the country.

Malta's Prime Minister Robert Abela defended the scheme, stating it had earned Malta over €1.4 billion ($1.6 billion). He said the government would study the legal implications and rework the system to align with the court's decision.

While purchased passports are now banned, "golden visas" offering residence permits for real-estate purchases or other major investments remain available in many EU countries. Henley & Partners, which facilitated the Maltese passport program, currently lists 31 countries offering "residence by investment" schemes, with almost half in the EU.

The ruling comes as the EU continues to assert regulatory authority across multiple sectors. European Commission President Ursula von der Leyen recently defended the bloc's digital regulations, stating they apply rules "fairly, proportionally, and without bias" to tech giants regardless of their country of origin.

European Commission spokesperson Markus Lammert expressed "serious concerns" with golden visa programs, citing "security, money laundering, tax evasion and corruption risks for the union as a whole." A 2022 European Parliament resolution called for increased due diligence and background checks for applicants, but enforcement remains with member states.