In a landmark decision, the European Court of Justice (ECJ) ruled in April 2025 that Malta’s citizenship-by-investment scheme, commonly known as the “golden passport” program, violates EU law. This verdict underscores the European Union’s commitment to preserving the integrity of EU citizenship and signals a broader crackdown on similar programs across the bloc.
The ECJ determined that Malta’s program, which granted citizenship in exchange for substantial financial investments, amounted to the commodification of EU citizenship. The court emphasized that such practices undermine the mutual trust among member states and the foundational principles of the Union. Consequently, Malta is compelled to terminate its scheme or face potential penalties.
Malta was the last EU country operating a citizenship-by-investment program. Prior to this ruling, Cyprus and Bulgaria had already dismantled their schemes under EU pressure. The ECJ’s decision sets a precedent, making it clear that EU citizenship cannot be sold, and member states must ensure a genuine link between the applicant and the country.
While the ECJ’s ruling specifically targets citizenship-by-investment schemes, it raises questions about the future of residency-by-investment programs, or “golden visas,” in countries like Portugal, Greece, and Spain. These programs, which offer residency rights in exchange for investments, may come under increased scrutiny to ensure they align with EU values and legal standards.
The EU’s stance may influence other countries offering similar programs. Nations with visa-free access to the EU, such as those in the Caribbean, might face pressure to reevaluate their citizenship-by-investment schemes to maintain favorable relations with the Union. This could lead to a global reassessment of the balance between attracting investment and upholding the sanctity of citizenship.
The ECJ’s decision marks a significant shift in the EU’s approach to citizenship and residency programs. As the Union prioritizes the integrity of its citizenship, countries worldwide may need to adapt their policies to align with these evolving standards. For individuals and advisors involved in global mobility planning, staying informed about these developments is crucial.
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