EU Court Declares Malta Golden Passport Illegal in Landmark Ruling
On April 29, 2025, the European Court of Justice (ECJ) ruled Malta’s golden passport scheme illegal under EU law, marking a major turning point in Europe’s stance on citizenship-by-investment. The court’s decision highlights growing concerns about the commercialization of EU citizenship and its broader implications for similar programs across the continent.
What Was the Malta Golden Passport Program?
Launched in 2013, the Malta Individual Investor Programme (IIP) allowed non-EU nationals to acquire Maltese—and therefore European Union—citizenship by making a substantial financial contribution to the country. Applicants could invest:
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€600,000 with a 3-year residency
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Or €750,000 with a 1-year residency
Additionally, investments in Maltese real estate and government bonds were required. Though the government claimed the program boosted the economy by over €1.4 billion, critics warned that it undermined the value and integrity of EU citizenship.
Why the EU Court Ruled It Illegal
The Malta golden passport scheme was ruled to be in violation of EU principles because it commodified citizenship, offering it in exchange for money without ensuring a genuine link between the individual and the member state. The court reaffirmed that:
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EU citizenship should involve shared values, rights, and responsibilities
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Member states must act in sincere cooperation with EU institutions
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Citizenship cannot be purely transactional
Reactions to the Ruling
Transparency advocates and EU policymakers applauded the verdict. They argued that the ruling is a strong step toward upholding the ethical standards of EU citizenship. Legal experts noted that the court’s interpretation may force other member states with similar schemes to revise or shut them down entirely.
Meanwhile, some Maltese officials criticized the ruling, arguing it was politically motivated. Malta has announced that it will comply with the court’s decision and is currently reviewing the legal ramifications for existing citizenship holders.
Implications for Other Citizenship-by-Investment Programs
This ruling sends a clear message across Europe: citizenship-by-investment programs must not bypass the core values of the European Union. Countries like Bulgaria, Cyprus, and others that have had similar initiatives will now be under scrutiny.
What Happens to Existing Malta Golden Passport Holders?
It’s still unclear whether individuals who previously acquired citizenship through Malta’s scheme will be affected. Legal experts believe retroactive cancellation of citizenship is unlikely but that stricter vetting and reporting may be applied going forward.
Conclusion: A New Era for Investment-Based Citizenship in Europe
The declaration of the Malta golden passport as illegal is more than just a national issue—it’s a signal that the European Union is cracking down on the monetization of its identity. This could reshape the future of residency and citizenship-by-investment programs, favoring routes with stronger residency ties, such as real estate-based golden visas and startup/investor pathways.
