In a highly anticipated judgment delivered today, 29 April 2025, the Court of Justice of the European Union (CJEU) issued its ruling in EC v Malta (Case C-181/23), addressing the compatibility of Malta’s investor citizenship framework with EU law.
The Court reaffirmed that while Member States retain sovereignty over the granting of nationality, this competence must be exercised consistently with the principles and values of the European Union. Specifically, where national citizenship decisions confer Union citizenship rights, Member States must ensure respect for the spirit of solidarity and sincere cooperation under EU Treaties.
The CJEU recognised that Union citizenship is a fundamental status under EU law. It clarified that granting nationality primarily in exchange for financial contributions, without requiring substantive ties to the country, risks undermining the values of mutual trust and reciprocity that underpin the Union. The Court observed that such practices could be perceived as a commercialisation of EU citizenship, contrary to the objectives set out in Articles 20 TFEU and 4(3) TEU.
Importantly, the judgment did not call into question the principle that nationality remains a national competence. Rather, it emphasised that Member States must exercise this discretion in a manner that safeguards the rights and obligations linked to Union citizenship. A detailed overview of the principles underpinning citizenship by investment and EU law is available on our dedicated EC v Malta CJEU Citizenship by Investment Decision Hub.
Following the decision, the Government of Malta issued a press statement welcoming the Court’s recognition of Member State sovereignty in nationality matters. The Government confirmed that it is analysing the judgment’s legal implications and will take necessary legislative steps to ensure alignment with the Court’s guidance. Malta also reaffirmed the validity of past citizenship decisions under its investment migration frameworks, ensuring continuity and legal certainty for existing citizens. For more on Malta’s citizenship legislation and regulatory framework, our experts provide comprehensive insights.
Further updates and official guidance are expected in due course, particularly concerning how the requirement of a genuine link will be interpreted and applied in future citizenship assessments. To stay informed, visit our continuously updated Citizenship by Investment Resources and Insights.
We will continue monitoring developments closely and will provide timely updates and detailed commentary as further information becomes available.
