EU Court Shuts Down Malta’s Citizenship By Investment Program
In a landmark ruling on April 29, 2025, the European Court of Justice (ECJ) declared the Malta citizenship by investment or “golden passport” scheme illegal, asserting that it commodified EU citizenship by offering nationality in exchange for financial investment without requiring a genuine connection to the country. The court emphasized that such practices undermine the principle of sincere cooperation among EU member states and erode mutual trust.
Malta’s citizenship by investment program, introduced in 2013, allowed individuals to obtain citizenship by contributing €600,000 after three years of residency or €750,000 after one year. Critics argued that the scheme facilitated money laundering and corruption, as investigations revealed that many applicants had limited ties to Malta and often left properties vacant.
The ECJ’s decision mandates Malta to terminate its citizenship-by-investment program, aligning with previous actions taken against similar schemes in Cyprus and Bulgaria. The ruling reinforces the EU’s stance that citizenship should not be treated as a commodity and must reflect a genuine bond between the individual and the member state.
Portugal’s Golden Visa: A Residency-Based Alternative To Malta Citizenship by Investment
Contrasting sharply with Malta’s approach, Portugal’s Golden Visa program remains unaffected by the ECJ’s ruling. Established in 2012, the program offers residency—not immediate citizenship—to non-EU investors who make qualifying investments in Portugal. Applicants are required to maintain a minimum physical presence in the country and can apply for citizenship only after five years of residency, during which they must demonstrate integration, including basic proficiency in the Portuguese language .
In 2023, Portugal implemented significant reforms to its Golden Visa program under the “Mais Habitação” law. The changes eliminated real estate and capital transfer routes, redirecting focus toward investments in key growth sectors through regulated alternative investment funds. These sectors include healthcare, technology, tourism, hospitality, renewable energy, media, and international events .
The shift aims to address housing affordability concerns and promote sustainable economic development. By investing a minimum of €500,000 in qualifying funds, applicants not only support vital industries but also align with Portugal’s broader development goals.
Investor Confidence Remains High
Industry stakeholders have observed a surge in interest in Portugal’s Golden Visa, particularly in light of the EU’s crackdown on less stringent programs. The program’s emphasis on genuine integration and compliance with EU regulations makes it an attractive option for investors seeking residency within the European Union.
Firms like Apex Capital Partners have noted that the structured approach of Portugal’s Golden Visa ensures that residency is granted based on meaningful engagement with the country, thereby maintaining the integrity of EU citizenship. This model balances national interests with investor appeal, offering a secure and compliant pathway for high-net-worth individuals.
Portugal’s Golden Visa: A Model for Sustainable Investment
As the EU tightens regulations on citizenship-by-investment schemes, Portugal’s Golden Visa stands out as a model that balances national interests with investor appeal. Its structured approach ensures that residency is granted based on meaningful engagement with the country, thereby maintaining the integrity of EU citizenship.
The program’s success is evident in the substantial foreign investment it has attracted, contributing over €7.5 billion to the national economy since its inception . By focusing on sustainable investment avenues and requiring genuine integration, Portugal’s Golden Visa offers a secure and compliant pathway for high-net-worth individuals seeking residency within the European Union.
In an era where the commodification of citizenship faces increasing scrutiny, Portugal’s approach provides a blueprint for aligning investor programs with the core values and legal frameworks of the EU. As other member states reevaluate their policies, Portugal’s Golden Visa may serve as a benchmark for sustainable and lawful investment migration.
