European Commission v Malta (C-181/23) — CJEU Rules Malta's Golden Passport Scheme Illegal

The EU's highest court ruled that Malta's investor citizenship programme — which granted EU citizenship in exchange for payments up to €750,000 — violates EU law. EU citizenship cannot be bought.

Court of Justice of the European Union — Grand Chamber · CJEU Grand Chamber · 29 April 2025

Since 2014, Malta operated a 'Citizenship by Naturalisation for Exceptional Services by Direct Investment' programme — widely known as the golden passport scheme. Non-EU nationals could acquire Maltese nationality (and with it, full EU citizenship and the right to live and work anywhere in the EU) through financial contributions of up to €750,000, property investment and a nominal residency requirement. In practice, some applicants spent fewer than 30 days in Malta yet received passports. The European Commission launched infringement proceedings in 2023. On 29 April 2025 the Court of Justice of the European Union (Grand Chamber) ruled against Malta. The court's reasoning was fundamental: EU citizenship under Article 20 TFEU is not a commercial product. It reflects a 'special relationship of solidarity and good faith' between a person and a member state, and between member states themselves. When a state grants nationality through a purely transactional procedure — essentially selling it for a predetermined payment — it breaks that relationship and violates the principle of sincere cooperation under Article 4(3) TEU. The scheme was found to undermine mutual trust between EU member states. Other member states could not rely on Malta having conducted proper vetting or established genuine ties before granting citizenship that carries full EU rights. Malta declared it would respect the ruling and review its naturalisation framework. Crucially, previously granted citizenships under the scheme were not revoked retroactively — the ruling applies prospectively.

Malta found in breach of Article 20 TFEU (EU citizenship) and Article 4(3) TEU (sincere cooperation). Malta required to end the scheme. Previously granted citizenships not retroactively cancelled.

• EU citizenship cannot result from a commercial transaction — it must reflect a genuine special relationship between a person and a member state
• A member state that sells citizenship without genuine links undermines mutual trust with other EU states and violates the principle of sincere cooperation
• The ruling ends Malta's golden passport scheme but does not retroactively cancel citizenships already granted under it
• This is a landmark CJEU ruling: it confirms the EU has a legitimate interest in how member states grant nationality when that nationality automatically confers EU citizenship rights

Treaty on the Functioning of the EU Art. 20 — EU citizenship; Treaty on the EU Art. 4(3) — principle of sincere cooperation; Malta Citizenship Act Ch. 188