The European Union’s highest court, the Court of Justice of the EU (CJUE), declared Malta’s controversial “golden passport” program illegal, ruling that it violates EU law. The scheme, which granted Maltese—and thereby EU—citizenship to wealthy investors in exchange for significant financial contributions, has been criticized for undermining the integrity of EU citizenship and facilitating corruption and money laundering. This landmark decision marks a significant step in the EU’s efforts to curb such practices, with implications for Malta and other member states.
Malta’s golden passport program, formally known as the Citizenship by Investment scheme, allowed affluent individuals to acquire Maltese citizenship through payments or investments, typically starting at €600,000. Successful applicants gained access to EU citizenship, which includes rights to live, work, and travel freely across the 27 EU member states, as well as the ability to vote in local and European elections. The program, which generated €1.4 billion for Malta since 2015, was lucrative but controversial, drawing scrutiny for its lack of transparency and potential to enable financial crimes.
The European Commission initiated an infringement procedure against Malta in October 2020, urging the Mediterranean nation to terminate the program due to concerns over corruption and money laundering. When Malta refused to comply, the Commission escalated the matter to the CJUE in September 2022.
The CJUE’s ruling on April 29, 2025, was unequivocal: Malta’s golden passport scheme violates EU law by commercializing citizenship. The court stated, “A Member State cannot grant its nationality—and, therefore, EU citizenship—in exchange for predetermined payments or investments, as this essentially turns the acquisition of nationality into a mere commercial transaction.” This practice, the court argued, undermines the principle of sincere cooperation and mutual trust among EU member states.
The court acknowledged that member states have the authority to set conditions for granting or revoking nationality but emphasized that this freedom must align with EU law. According to the CJUE, Malta’s program “does not establish the necessary link of solidarity and good faith between a Member State and its citizens,” thereby breaching EU principles.
Malta must now comply with the ruling “as soon as possible,” or face potential financial penalties from the European Commission. The decision is final and cannot be appealed.
Malta argued that granting citizenship falls under national competence, asserting that its program complied with EU treaties. The government highlighted reforms, such as suspending the program for Russian and Belarusian nationals following Russia’s invasion of Ukraine in 2022, as evidence of due diligence. However, the CJUE rejected this defense, noting that the program’s continuation for other nationalities still violated EU law, according to Transpirency EU.
In response to the ruling, the Maltese government issued a statement committing to review the decision’s :“legal implications” while defending the program’s economic contributions. “The program has reported €1.4 billion to the island since 2015,” the government noted, underscoring its financial significance.
The golden passport controversy extends beyond Malta. Cyprus and Bulgaria previously operated similar schemes but terminated them in 2021 and 2022, respectively, following EU pressure and concerns over links to criminal activities, including money laundering and tax evasion. Malta was the last EU member state to maintain such a program, making the CJUE’s ruling a decisive blow to citizenship-by-investment schemes in the EU.
The European Commission has long criticized these programs for their potential to compromise EU security and values. In 2020, the Commission stated, “The granting of Union citizenship in exchange for a payment or investment without a genuine link to the Member State concerned undermines the very essence of EU citizenship.” Similarly, EU Justice Commissioner Didier Reynders emphasized, “EU values are not for sale,” in a 2022 statement condemning Malta’s practices.
Transparency International and other NGOs have also flagged golden passports as a gateway for financial crime. According to Maira Martini of Transparency International, “The risk is that a criminal wanted in one country can escape justice by obtaining an EU passport, which complicates extradition procedures.” It exposed alleged corruption linked to Malta’s program, including bribes involving former Prime Minister Joseph Muscat’s chief of staff, Keith Schembri.
The CJUE’s ruling against Malta’s golden passport program is a pivotal moment in the EU’s fight against the commodification of citizenship. By declaring the scheme illegal, the court has reinforced the principle that EU citizenship is not a commodity to be bought but a privilege tied to genuine ties with a member state. Malta now faces the challenge of aligning with EU law while addressing the economic fallout from ending a lucrative program.
