In a landmark decision on April 29, 2025, the European Court of Justice (ECJ) declared Malta’s golden passport scheme illegal, stating that the program violated EU law by commodifying citizenship. This ruling not only mandates the termination of Malta’s citizenship-by-investment initiative but also sets a precedent that could influence similar programs across the European Union.
Background: Malta’s Golden Passport Scheme
Launched in 2013, Malta’s Individual Investor Programme (IIP) allowed foreign nationals to acquire Maltese—and by extension, EU—citizenship through significant financial contributions. Applicants were required to invest approximately €1 million, which included donations to national development funds, real estate purchases, and government bonds. The scheme attracted high-net-worth individuals seeking the benefits of EU citizenship, such as freedom of movement and access to the single market.
The European Court’s Rationale
The ECJ’s ruling emphasized that granting citizenship in exchange for predetermined payments undermines the fundamental principles of the EU. The court stated that such practices erode mutual trust among member states and violate the principle of sincere cooperation. By reducing citizenship to a commercial transaction, Malta’s scheme failed to establish a genuine link between the applicant and the country, a requirement deemed essential for the integrity of EU citizenship.
Reactions from Stakeholders
Maltese Government’s Response
The Maltese government expressed disappointment with the ruling but confirmed its intention to comply with the court’s decision. Officials highlighted the economic benefits the program had brought to the country, including over €1.4 billion in revenue since its inception.
Criticism from Transparency Advocates
Transparency International and other watchdog organizations welcomed the decision, viewing it as a victory for EU integrity. They argued that the scheme had facilitated money laundering and allowed individuals with questionable backgrounds to gain EU citizenship without sufficient scrutiny.
Industry Perspective: Yusuf Boz’s Commentary
Yusuf Boz, a renowned expert in investment migration, commented on the broader implications of the ruling:
“The ECJ’s decision underscores the need for transparency and genuine integration in citizenship programs. While investment can be a tool for economic growth, it should not compromise the values and security of the Union.”
Boz emphasized that the ruling could prompt other EU countries to reevaluate their own citizenship and residency programs to ensure compliance with EU principles.
Implications for Other EU Member States
The ECJ’s decision has raised questions about the future of similar programs in other EU countries. While Malta’s scheme was among the most prominent, nations like Cyprus and Bulgaria have also operated citizenship-by-investment programs, some of which have already been suspended or terminated amid EU scrutiny. The ruling may accelerate the phasing out of such initiatives across the bloc.
The European Court of Justice’s ruling against Malta’s golden passport scheme marks a pivotal moment in the EU’s approach to citizenship-by-investment programs. By affirming that citizenship cannot be bought, the court reinforces the importance of genuine ties and mutual trust among member states. As the EU continues to grapple with issues of integration and security, this decision sets a clear standard for the future of citizenship policies within the Union
