In a decision that could reshape the investment migration industry across Europe, the European Court of Justice (ECJ) has ruled that the Malta Citizenship-by-Investment (CBI) program is in breach of EU law. This landmark judgment, delivered on April 29, 2025, orders the Maltese government to end its popular “golden passport” scheme, citing that it undermines the foundational principles of European Union citizenship.
The case, brought forward by the European Commission, focused on the legality of granting citizenship primarily in exchange for financial contribution—without requiring a genuine connection to the issuing member state. Malta’s program, launched in 2013 and revised in 2020, had long been under scrutiny. With the court now declaring it incompatible with the values of sincere cooperation and equal standing among EU nations, Malta is dismantling one of the EU’s last remaining standalone CBI programs.
Understanding Malta’s Citizenship-by-Investment Program
Malta’s Individual Investor Programme (IIP), rebranded in 2020 as the “Maltese Citizenship by Naturalization for Exceptional Services by Direct Investment,” offered foreign investors EU citizenship in return for a minimum investment of €600,000, plus additional donations and property requirements. In many cases, the total investment surpassed €1 million. Applicants could gain citizenship in about 12 to 36 months, depending on their financial contribution and the level of due diligence involved.
Since its inception, Malta’s Citizenship By Investment program has generated an estimated €1.4 billion in revenue, supporting economic development and helping to offset national deficits. Over 5,300 applicants benefitted from the program, including high-net-worth individuals (HNWIs) from regions with geopolitical instability or limited travel access.
Though the program tightened regulations in recent years—introducing stricter background checks, excluding certain nationalities, and extending the residency requirement—it remained fundamentally a pathway to EU citizenship through investment. That, according to the ECJ, is where the legal conflict lies.
The Legal Argument: National Sovereignty vs EU Integrity
The ECJ’s decision underscores a key tension within the EU: the balance between a member state’s sovereign right to grant citizenship and the collective obligations of EU citizenship. While nationality is determined at the national level, EU law stipulates that all citizens of member states are automatically granted EU citizenship, with rights to live, work, and travel freely across all EU nations.
In its judgment, the ECJ stated that the Malta Citizenship By Investment program “amounts to the commercialization of the grant of the nationality of a Member State and, by extension, that of Union citizenship.” The court argued that this practice jeopardizes mutual trust among EU members and violates the principle of sincere cooperation, enshrined in Article 4(3) of the Treaty on European Union.
The verdict may set a precedent for how other EU nations approach residency and citizenship offerings. Although Malta argued that applicants were subject to a thorough vetting process and residency period, the court concluded that the absence of a true “genuine link” between the applicant and the country rendered the scheme incompatible with EU norms.
Diverging Opinions on the Malta Citizenship-by-Investment Program Ruling
The ECJ’s decision was met with praise from transparency advocates and criticism from sovereignty-focused stakeholders. Former Maltese Prime Minister Joseph Muscat called the ruling politically charged and directly infringed on national authority. “This was never about security or cooperation. It’s about control and eroding the rights of smaller member states to design their own economic tools,” he stated.
Industry professionals also expressed concern about the precedent this ruling sets. Investment migration remains a legitimate strategy for countries to attract foreign capital, encourage economic diversification, and remain competitive in a globalized financial ecosystem. To some, banning CBI entirely—rather than reforming or regulating it—risks overlooking the legitimate economic value these programs can deliver when managed responsibly.
Market Reaction and the Urgent Shift to Other Options
Unsurprisingly, the ruling has had an immediate ripple effect across the investment migration industry. Citizenship brokers and legal advisors are now shifting focus toward jurisdictions outside the EU, particularly those in the Caribbean and Asia-Pacific regions that continue offering well-regulated and transparent citizenship or residency-by-investment options.
Golden visa brokers are also urging urgency. Apex Capital Partners, a global leader in citizenship by investment solutions, reports a spike in inquiries following the ECJ decision. “This ruling has dramatically narrowed the window for clients seeking EU citizenship through investment,” a spokesperson from Apex noted. “We’re advising clients to move quickly in securing alternatives before further regulatory shifts occur.”
The decision is expected to drive increased interest in programs offered by Caribbean nations including Antigua and Barbuda, Dominica, and St. Kitts and Nevis, which continue to provide strong passport access, strategic investment frameworks, and clear due diligence procedures—though they do not provide access to the EU.
At the same time, some investors are pivoting toward long-term residency options or tax residency schemes in countries like Portugal (through investment funds), the UAE, or Singapore, which maintain economic incentives for HNWIs without explicitly offering full citizenship.
What Happens to the Existing Malta Citizenship-by-Investment Citizens?
The ECJ ruling does not retroactively invalidate citizenships already granted under the Malta Citizenship-by-Investment program. However, scrutiny may increase. EU institutions and member states could revisit the cases of individual passport holders if questions arise over how their citizenships were obtained or if national security concerns are flagged.
That said, legal experts anticipate few revocations unless clear fraud or security issues are identified. Existing passport holders will likely retain their rights, but they may face stricter documentation requirements for things like Schengen travel or EU residency.
For Malta, the economic blow is not insignificant. The country must now consider how to replace the income generated by its program, which has played a key role in supporting housing development, infrastructure, and post-COVID recovery efforts.
The Future of Investment Migration in Europe
With Malta’s program dismantled, the investment migration landscape in the EU is undergoing a major reset. Cyprus and Bulgaria had already suspended their citizenship-by-investment schemes in recent years under EU pressure. Portugal and Greece have restructured their golden visa offerings to prioritize job creation and innovation over real estate speculation.
Still, the global appetite for citizenship diversification has not waned. For many investors, second citizenship is essential to wealth planning, estate protection, and geopolitical risk management. As long as this demand exists, countries outside the EU will continue to attract applicants with efficient, transparent, and reputable programs.
The ECJ ruling doesn’t end citizenship-by-investment. It simply redraws the regulatory map, potentially pushing Europe out of the market. For industry leaders and advisors, the focus now shifts to ensuring that alternative programs meet international compliance standards while maintaining their appeal to discerning investors.
An Industry at a Crossroads
The fallout from the ECJ’s decision on Malta will shape the next chapter of the investment migration industry. It serves as a wake-up call to jurisdictions offering or considering CBI schemes: legal structures must go hand-in-hand with transparency, compliance, and geopolitical awareness.
But it also reinforces a reality long understood by golden visa brokers—citizenship is a powerful, highly personal tool for international investors. And where opportunity closes in one region, another will inevitably rise.
