Key Takeaways
• ECJ declared Malta’s golden passport program illegal under EU treaties on April 29, 2025.
• Malta must shut the program and pay legal costs, ending citizenship-by-investment in the EU.
• Countries like Cyprus and Bulgaria ended similar programs; golden visas face increased EU scrutiny.
On April 29, 2025, the European Court of Justice took a strong stance against Malta’s golden passport program, calling it illegal under European Union law. This decision marks a major change in the way citizenship-by-investment programs are handled across the EU. For many years, Malta 🇲🇹 allowed wealthy people from outside the EU to buy citizenship in exchange for making large investments in the country. The court’s ruling does not just affect Malta 🇲🇹; it also signals the end of all such schemes in the European Union and sets new expectations about what it means to be a EU citizen.
What Did the European Court of Justice Decide?
The European Court of Justice, also referred to as the ECJ, is the top court in the European Union. In this landmark ruling, the court said that Malta’s golden passport program broke EU law. According to the ECJ, selling citizenship as if it were a product is not allowed under EU treaties. The court called this practice a “commercialization of the granting of the status of national of a member state and, by extension, Union citizenship.”
The core reason behind the court’s decision was the idea that citizenship should be based on real connections to a country, not just the ability to pay a large sum of money. The ECJ explained that providing citizenship in return for investment alone turns nationality into something that can be bought, making it no different from a business deal.
This decision did not come as a surprise to most observers. The European Commission had already started legal action against Malta 🇲🇹, saying the scheme was not in line with the country’s duty to cooperate with the rest of the European Union. Now that the ECJ has confirmed this view, Malta 🇲🇹 has also been told to pay the costs for the legal process.
How Malta’s Golden Passport Worked
Before the ruling, Malta’s golden passport program was known for its large price tag and unique benefits. The basics of the program included:
- A minimum donation of €600,000 (about Rs 5.74 crores)
- Required real estate purchases in Malta 🇲🇹
- Optional donations to local charities
The main attraction was not just Maltese citizenship, but all the rights it offered. A Maltese passport meant the freedom to live, work, and travel freely across all 27 EU countries. In fact, people from around the world—including Russian business leaders, Middle Eastern investors, celebrities, and famous athletes—were drawn to the scheme. The financial requirements were high, but for many, the opportunity to secure an EU passport was worth the cost.
Importantly, critics pointed out that under Malta’s rules, buyers did not have to live in or even visit Malta 🇲🇹 for any period of time. Instead, a quick financial transaction was enough for some to gain full EU citizenship.
Why Did the European Court of Justice Strike Down Malta’s Program?
There were several reasons for stopping the golden passport program. The most important was the belief that citizenship should mean more than money. EU law says that each member country can set its own rules for who becomes a citizen, but the ECJ said these decisions still need to respect the shared values of the Union.
According to the ruling, Malta’s approach ignored the idea that citizenship should be based on a real connection to the country. By selling citizenship, the country treated nationality “as a mere commercial transaction,” making European citizenship seem like something you can buy at a store.
The ECJ also listened to the European Commission’s warning that Malta 🇲🇹 was not acting in good faith with the rest of the EU. In simple words, the court felt that allowing a country’s passport to be sold affected every other EU member because it gave outsiders full access to the rights and freedoms of the Union.
Malta 🇲🇹 has now been officially told to end the program and to pay the legal costs for the case.
What Was the Golden Passport Program Used For?
Malta’s program was the last of its kind in the European Union. It wasn’t new for countries to offer “golden visa” or passport schemes. In these programs, foreigners would pay money or buy property in exchange for a visa, residency, or, in some cases, citizenship.
Malta 🇲🇹 went a step further with direct citizenship-by-investment, which brought special attention because the program gave successful applicants all the rights of EU citizens without asking them to actually move to Malta 🇲🇹 or become involved in Maltese life.
The scheme, though popular among the super-rich, also attracted controversy because:
- It could be used by people wanting to avoid taxes or hide assets.
- There were concerns it might allow sanctioned or criminal individuals to enter the country and, by extension, the EU.
- There were questions about whether true background checks were being done.
These concerns grew especially strong after Russia 🇷🇺 invaded Ukraine 🇺🇦 in 2022. Many feared that the program might let wealthy Russians under sanctions buy their way into the EU.
How Has the Rest of the EU Responded?
Malta’s golden passport program was not the only one in the EU, but it’s the last one standing until this ruling. Just a few years earlier, countries like Cyprus 🇨🇾 and Bulgaria 🇧🇬 offered similar pathways to citizenship for investment. Cyprus 🇨🇾 scrapped its program in 2020, while Bulgaria 🇧🇬 ended theirs in 2022. As a result, Malta 🇲🇹 was left as the only EU country still selling citizenship directly.
Many other EU countries also offered “golden visa” programs. These gave investors the right to live (but not become citizens) in the country in return for investment in property or in local businesses. But over the last two years, many governments have acted to close loopholes or shut these programs for good:
- Portugal 🇵🇹 scaled down its golden visa scheme in 2023, removing real estate options to reduce property price bubbles.
- The Netherlands 🇳🇱 shut its golden visa scheme in January 2024.
- Spain 🇪🇸 promised to stop giving golden visas to real estate investors.
The European Union has raised concerns about these programs for a long time. The main worries are about security, as well as risks of money-laundering and tax evasion. Critics claim these programs make it too easy for criminals or people under sanctions to cross the EU’s open borders. After Russia’s actions in Ukraine, these fears grew, as many believed wealthy Russians could buy new citizenships and sidestep EU rules.
In 2022, the European Parliament asked for tighter controls on all investment migration programs, calling citizenship-by-investment “objectionable from an ethical, legal, and economic point of view.” This ruling from the ECJ now supports those demands, showing that the EU is willing to take a clear stand against the buying and selling of passports.
What Makes Citizenship Special in the EU?
At the center of the case is the question: what does it mean to be a citizen of a country like Malta 🇲🇹—and, more importantly, the EU as a whole? EU law says that all citizens of an EU country are also citizens of the EU, with important rights such as free movement, work, and access to services throughout the Union.
The ECJ’s ruling makes it clear that these rights should not be passed on lightly. While each country can decide who can be a citizen, the court said they must not use this power in a way that gives outsiders an easy shortcut into the EU.
One of the most debated points was whether countries are free to do as they please. A senior EU tribunal adviser had earlier argued that EU member states should have full freedom to decide who is a citizen. The ECJ disagreed, saying that while countries have this power, it cannot be used just for financial gain. In other words, the European Court of Justice wants member states to show that citizens really belong in the country and not just pay for a passport.
What Happens Next for Malta and the EU?
Malta 🇲🇹 is now under clear orders to close its golden passport scheme. This means no more EU citizenship will be given out in exchange for large investments. For Malta, the ruling may mean a big loss of income, as the program has brought in hundreds of millions of euros since its start.
For people who have already bought Maltese passports, it is not yet clear if their EU citizenship will be challenged or revoked. The court’s decision does not directly order Malta 🇲🇹 to take away passports already issued, but future actions may depend on how the country follows up.
Across the EU, this ruling is likely to have a big effect. It shows other countries that selling the benefits of European citizenship is unacceptable under EU law. It may also affect golden visa programs by making clear that they will face strong checks and must not be used to get around proper immigration and security controls.
Why Is This Ruling Important?
The end of Malta’s golden passport is seen as a strong warning to other countries inside and outside Europe. The European Union wants to keep its borders secure and make sure the rights it offers are protected and only given to those with real connections to an EU country.
This is also about trust. EU countries depend on each other to keep the shared space safe and fair. Selling passports risks this trust by letting people with no real link or loyalty to a member state enjoy all the rights of every EU citizen.
Members of the European Parliament and the European Commission have said for years that such programs are not fair and could be dangerous. The decision from the top court now backs up these warnings in a way that legal experts expect will close any remaining loopholes.
Golden Passport Schemes Outside the EU
While the EU has ended citizenship-by-investment programs, there are still countries outside the bloc with similar options. Some nations sell passports or long-term residency to foreign investors, but the EU’s stance may encourage other countries to review or reform their own programs too.
People interested in formal citizenship questions or the latest updates can always follow the Malta Citizenship Agency’s official site, which provides regulatory details and application forms.
Different Opinions and Reactions
The ending of Malta’s golden passport program has sparked debate. Some say such programs help smaller countries bring in needed money and attract business. They argue that strict checks and rules could prevent abuse. Others, especially watchdog groups and security experts, see the risks as too high, saying citizenship must mean loyalty, not financial investment.
As reported by VisaVerge.com, the ECJ’s ruling supports the European Commission’s position that national interests must not come ahead of the shared safety and unity of the European Union.
Final Thoughts
The European Court of Justice has set a new path for the future of citizenship in the EU. It makes clear that the European Union does not want its passports treated like a product for sale. Malta 🇲🇹, having run the last such program, now has to follow the ruling and stop selling citizenship.
For the thousands who looked at Malta 🇲🇹 as an easy way into Europe, that door is now closed. For other countries and policymakers, this moment sends a clear message: citizenship is more than a transaction. It is about belonging, responsibility, and being a true part of the community.
As these changes take effect, everyone from investors to policymakers will watch for how Malta 🇲🇹 responds and how the European Court of Justice’s decision shapes the future of all citizenship and immigration programs in the region. People who want to keep up-to-date on these important immigration matters can turn to official EU and Maltese government resources for the latest rulings, updates, and guidance.
Learn Today
European Court of Justice (ECJ) → The highest judicial authority in the EU, responsible for interpreting EU law and ensuring its equal application.
Golden Passport Program → A scheme where foreign investors can obtain citizenship by making significant financial contributions to a country.
Citizenship-by-Investment → A process allowing individuals to gain citizenship through substantial investments in a nation’s economy.
European Commission → The executive branch of the EU that enforces EU laws and initiates legal actions against member states.
Sanctions → Legal restrictions or penalties imposed by countries or international organizations, often to influence behavior or as a response to wrongdoing.
This Article in a Nutshell
In April 2025, the European Court of Justice declared Malta’s golden passport program illegal, marking an end to citizenship-for-investment in the EU. The ruling pressures all EU nations to strengthen residency, citizenship, and investment controls, signaling that belonging—not finances—should determine who receives the privileges of EU citizenship.
— By VisaVerge.com
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