Context: Malta’s golden passport scheme was struck down by the European Court of Justice in April 2025 for turning EU citizenship into a commercial transaction, violating EU principles.
About Malta Golden Passport Scheme
- Malta Golden Passport Scheme was launched in 2020. The scheme allowed foreign nationals to acquire Maltese citizenship in exchange for large financial investments.
- Citizenship of Malta meant automatic EU citizenship, granting rights like free movement, work, voting, and residency across the EU.
- Critics argued it commercialised EU citizenship, enabling money laundering, tax evasion, and security risks.
- Most beneficiaries were from China, Russia, and West Asia.
- Between 2013–2019, around 32 lakh people entered the EU via CBI and RBI schemes, generating over €20 billion.
- The European Commission and court stated this undermined trust among EU nations and violated EU treaties.
- In 2025, the European Court of Justice officially invalidated the scheme, ending Malta’s golden passport programme.
- Malta’s scheme clashed with EU laws on mutual trust, fair cooperation, and anti-discrimination.
- The court prioritised ethical citizenship practices over financial gains.