In a historic judgment, the Court of Justice of the European Union (CJEU) has ruled that Malta’s controversial citizenship-by-investment program, commonly known as the “golden passport” scheme, is incompatible with EU law, effectively banning the sale of EU citizenship.
The ruling comes after the European Commission challenged Malta’s scheme, arguing that citizenship should not be granted without ensuring a genuine connection to the country. The Maltese government had defended its policy, maintaining that matters of national citizenship remain within its sovereign jurisdiction. However, the CJEU determined that Malta’s program “amounts to the commercialisation of the granting of the status of national of a Member State and, by extension, Union citizenship,” undermining the fundamental principles of EU membership and sincere cooperation.
The verdict was widely welcomed by transparency advocates and anti-corruption organizations. Maíra Martini, Chief Executive Officer of Transparency International, called the decision a victory for integrity in EU governance, stating, “Countless cases have shown how these schemes have granted safe haven to corrupt actors and other suspicious individuals. This ruling ensures that EU citizenship is no longer for sale.”
Matthew Caruana Galizia, Director of the Daphne Caruana Galizia Foundation, emphasized that investment migration programs offer little benefit to Malta. He urged the government to comply with the ruling and dismantle the program immediately, warning that similar golden visa schemes should also be reevaluated.
Nick Aiossa, Director of Transparency International EU, framed the ruling as a step toward safeguarding EU values, saying, “This case was about more than national citizenship; it was about preventing the sale of the EU’s four freedoms. As long as money can buy EU citizenship, the bloc remains vulnerable to corruption—but no longer.”
The decision not only halts Malta’s citizenship program but also sets a precedent for other nations that have considered or implemented similar schemes. Analysts expect this ruling to impact discussions surrounding golden visa programs, which have also been criticized for allowing foreign investors to gain residency with minimal scrutiny.
The Maltese government has yet to announce its response to the verdict. However, EU officials have stressed that adherence to the ruling is essential to maintaining the integrity of European citizenship.
This landmark decision signals a shift in EU policy, reinforcing the notion that citizenship is a right earned through genuine ties rather than a commodity for sale.
