The EU's top court has ruled that Malta must end its "golden passport" scheme, saying it violates EU law by granting citizenship without national ties. Find out how Malta reacted to the ruling, what the prospects are for investors and how the citizenship-by-investment system in Europe will change overall

On April 29, 2025, the European Court of Justice ruled that Malta’s citizenship-for-investment program violates EU law.

The court stressed that EU citizenship cannot be granted for money without a genuine connection to a state. The decision was the culmination of years of pressure from Brussels to end investment citizenship programs.

Malta is one of the last EU countries to operate a similar program, which allows you to get a passport for a deposit of EUR 600,000+. Now the country could face legal and financial consequences.

Read on for everything we know so far about the abolition of citizenship by investment in Malta.

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How did Malta react to the recognition of the citizenship-for-investment program as illegal?

The Maltese government said it respects the European Court’s ruling that the investment citizenship program violated EU law.

Malta will soon begin the process of revising its regulatory framework to bring it into line with EU requirements. That is, it can be assumed that the program will not be closed, but will be transformed in accordance with EU requirements.

The government also expressed regret that the court did not take into account the recommendations of the EU Advocate General, who had previously confirmed the right of member states to independently determine their citizenship policies. Nevertheless, Malta has stated its intention to maintain economic benefits for its citizens, adapting the system to new conditions.

What is the Golden Passport program in Malta?

Golden passport programs, or citizenship by investment (CBI) schemes, provide foreigners with the opportunity to obtain citizenship of a country subject to significant financial investments.

Successful candidates receive not only citizenship of that country, but also citizenship of the European Union. This gives them visa-free access to more than 180 countries and the opportunity to live, work or study in any EU country.

These programs have become popular among wealthy individuals from countries with travel restrictions or political difficulties. However, they have also faced criticism, including over risks related to corruption, money laundering and national security issues.

Why is Malta’s Golden Passport program being shut down?

In 2022, the European Commission took Malta to court, arguing that the program grants EU citizenship to people who have no real connection to the country, but only pay large sums of money.

The Court of Justice of the EU ruled:

“A Member State cannot grant its citizenship, and even less its European citizenship, in exchange for predetermined financial contributions or investments, since that essentially turns the acquisition of citizenship into a purely commercial transaction.”

While each EU country has the right to set its own rules for granting citizenship, the court stressed that Malta’s scheme undermines mutual trust between member states. It is important that citizenship is based on a real connection between the applicant and the country, and not just on financial investments.

Why is the Golden Visa program important for Malta?

The Prime Minister of Malta, Robert Abela, noted that the program has injected over USD 1.4 billion into the country's economy, which was directed to social, medical, infrastructure and environmental projects, so it is a very important part of the country's economy.

Will those who have already received a Maltese passport through investment lose their citizenship?

The Maltese authorities noted that all previously issued passports will remain valid, and holders of citizenship through investment will not be affected.

However, holders of Maltese passports may face increased scrutiny by EU member states.

What should investors who plan to obtain Maltese citizenship through the Golden Passport program do?

Those planning to apply through the Maltese program are likely to lose this route to EU citizenship. They may have to consider alternatives, such as "golden visa" programs, which offer residency (not citizenship) in exchange for investment.

Currently, residence permits can be obtained in countries such as Portugal and Greece through investment in real estate or business. They allow for long-term residence and potential citizenship after several years of residence.

Prospects for investment citizenship and “golden visas” in Europe after the EU decision

In recent months, the EU has been actively working to change the procedure for obtaining citizenship by investment, and the decision of the European Court of Justice is shaping a new landscape for the investment migration market worldwide, in particular:

- Citizenship by investment programs in the EU will cease to exist

Except for Malta, there will be no more EU member states with similar schemes. Therefore, from now on, it will be impossible to obtain EU citizenship by investment.

Also, countries such as Bulgaria and Cyprus have already suspended their programs, as the position of the European Court of Justice strengthens the EU’s desire to completely abolish such programs.

- Caribbean citizenship programs are under pressure

The EU is considering abolishing the visa-free regime for Caribbean countries, which could sharply reduce the demand for Caribbean passports.

- Tightening requirements in “golden visa” programs

Countries will tighten investment requirements, especially in real estate, and in a number of states, the closure of existing schemes is possible.

- Full attention to individual routes

Priority will be given to options through real investments, strategic projects or labor activity, available to a limited number of applicants.

- Increasing cost

Obtaining a second citizenship or alternative residence permit will become significantly more expensive and will require more serious investments.

That is, we can already say that a new period is coming in the world of investment migration with high requirements, limited access and increased control.

Follow the news on the Visit World portal to be the first to learn about all the changes in migration and investment legislation in the world.

Get advice from a migration lawyer to explore the possibilities for obtaining a residence permit and citizenship in Malta in 2025.

Reminder! The Golden Visa program to Spain, which officially launched in 2013, was closed on April 3, 2025. We have already told you how this decision affected current and potential investors and what alternative options exist for obtaining a residence permit in Spain.

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