The European Court of Justice (ECJ) has ruled that Malta's practice of selling citizenship to foreign investors through 'golden passports' is in violation of EU law.

As a result of the ruling, Malta is mandated to suspend its citizenship program to avoid potential financial penalties.

Under the previous scheme, foreign investors could obtain Maltese citizenship by investing at least €600,000 and purchasing property valued at €700,000 or renting an expensive apartment.

Malta's government has acknowledged the ruling and is currently reviewing its legal implications, despite having generated over €1.4 billion in revenue from the scheme since its inception.

This decision effectively ends the last citizenship-by-investment program in the EU, following similar terminations in Cyprus and Bulgaria.

Golden visa programs across Europe are facing increased scrutiny due to concerns over security and money laundering, particularly in light of geopolitical tensions.

The ruling is seen as a victory for transparency advocates, who have long criticized such programs for facilitating corruption and security risks.

As part of the ruling, Malta is ordered to cover the legal costs associated with the case due to its failure to comply with EU obligations.

The court highlighted that this scheme commercializes nationality and undermines the mutual trust essential for an internal border-free area among EU member states.

A spokesperson for the European Commission emphasized that EU citizenship should not be for sale and urged all member states to abolish similar investor citizenship schemes.

Malta had already suspended applications from Russian and Belarusian citizens prior to the court's ruling, reflecting its selective approach to citizenship.

This ruling sets a precedent that requires citizenship investment schemes within the EU to demonstrate meaningful ties between applicants and the state.