The Court of Justice of the European Union (CJEU) has ruled that programmes granting citizenship to large investors — known as ‘golden visas’ — are illegal, as it believes that these “golden visas” violate EU law by transforming the nationality of a Member State into a marketable asset.
The decision, which is based on the citizenship-by-investment programme launched by Malta in 2020, concludes that this type of initiative does not allow for the establishment of the bond of solidarity and loyalty that must exist between a Member State and its citizens, nor does it ensure mutual trust between the countries of the Union. Therefore, they constitute a violation of the principle of sincere cooperation.
The CJEU stresses that no Member State may grant its nationality in exchange for a predetermined payment or financial investment, as this reduces citizenship to a mere commercial transaction.
While acknowledging that States have the power to define the criteria for granting or revoking nationality, the Court states that this freedom must be exercised in accordance with EU law.
The judgment also recalls that European citizenship confers the right to free movement within a common area of freedom, security and justice, the existence of which is based on mutual trust between Member States and the mutual recognition of their respective national decisions.
In this sense, the Court calls on each Member State to refrain from adopting measures that could compromise the common objectives of the European Union, as stipulated by the principle of sincere cooperation.
