ECJ Rules Malta's 'Golden Passport' Scheme Unlawful
In a significant ruling, the European Court of Justice (ECJ) has declared that Malta's 'golden passport' scheme, which sold citizenship to wealthy investors, is in violation of EU law. The decision, handed down on 29 April 2025, has put an end to the controversial program that had been generating billions for the Maltese government since 2014.
The ECJ ruled that selling citizenship based on a predetermined sum of money did not establish a 'genuine link' between the investor and Malta. This decision was surprising to many EU law scholars due to its deficient reasoning and interpretation of national competence for national citizenship. The European Commission had brought Malta before the ECJ in 2023, alleging it was violating the status of Union citizenship and the principle of sincere cooperation.
The Maltese 'golden passports' scheme offered citizenship to third-country nationals in exchange for an investment of more than €600,000. Despite the European Court of Human Rights' decision in 2022, Malta continued to conduct similar programs, generating over a billion euros. However, the ECJ's recent ruling has now put a stop to this practice, at least in its current form.
Malta has accepted the ECJ's decision and has announced a legal review to determine how to bring the program into line with the ruling. While other member states continue to operate similar 'golden visa' programs, the ECJ's decision sets a clear precedent for the future of citizenship-by-investment schemes within the EU.
