The European Court of Justice (ECJ) has ruled that Malta’s “golden passport” scheme is illegal, marking a significant development in the European Union’s efforts to regulate citizenship by investment programs.
Background of Malta’s Golden Passport Scheme
Introduced in 2013, Malta’s scheme allowed non EU nationals to acquire Maltese, and thus EU, citizenship by making substantial financial contributions to the country. Applicants could pay €600,000 after three years of residency or €750,000 after one year, along with additional investments in property and donations to national funds. This program generated over €1.4 billion in revenue for Malta since its inception .
The ECJ’s Ruling
On April 29, 2025, the ECJ declared the scheme illegal, stating that it violates EU law by commodifying EU citizenship. The court emphasized that granting citizenship in exchange for payment undermines the integrity of EU citizenship, which should reflect a genuine connection between the individual and the member state. The ruling mandates Malta to terminate the program .
Implications for Malta and the EU
The decision has significant implications for Malta and other EU countries with similar programs. While Malta defended the scheme as a sovereign right to attract investment, the ECJ’s ruling underscores the EU’s stance that citizenship should not be for sale. The European Commission welcomed the decision, highlighting concerns over security risks and the potential for money laundering associated with such schemes .
The ruling also sets a precedent that may influence other member states operating or considering similar programs. Countries like Cyprus and Bulgaria have already shut down their citizenship-by-investment schemes, and this decision may prompt further scrutiny and potential discontinuation of such programs across the EU .
Conclusion
The ECJ’s ruling against Malta’s golden passport scheme reinforces the EU’s commitment to preserving the integrity of its citizenship. By declaring the scheme illegal, the court has sent a clear message that EU citizenship cannot be commodified. This decision is likely to have far reaching effects on similar programs within the EU, prompting a reevaluation of policies that allow citizenship to be acquired through financial investment alone.
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