Introduction
Malta has long marketed itself as a premier destination for investors seeking fast-track citizenship in Europe. Through its “Golden Passport” program, high-net-worth individuals could obtain Maltese – and therefore European Union – citizenship in exchange for significant financial contributions. But in a landmark ruling earlier this year, the European Court of Justice (ECJ) struck down Malta’s program as incompatible with EU law.
The Court’s Decision
The ECJ ruled that Malta’s sale of citizenship “commodifies the rights of Union citizenship” and undermines the principle of genuine ties between an individual and a member state. The decision effectively closes the door on one of Europe’s most controversial investment citizenship schemes.
Malta had already faced mounting pressure from Brussels, with the European Commission initiating infringement proceedings in 2020. The court’s final judgment in 2025 confirms that Malta must discontinue its program permanently.
Consequences for Investors
- Existing Applicants: Individuals mid-way through their applications are now left in legal limbo. While Malta has promised to honor some commitments, EU authorities may challenge naturalizations granted under the scheme.
- Market Realignment: Wealthy investors are expected to redirect capital to other EU residency programs, particularly Portugal’s Golden Visa and Greece’s residency permits, both of which remain lawful under EU frameworks.
- Reputational Impact: Malta’s broader reputation as a financial and residency hub may suffer, especially given the perception of regulatory risk.
Wider Market Dynamics
This ruling sends a strong signal across Europe: citizenship cannot be sold outright. While residency-by-investment remains permissible, pathways to citizenship must include meaningful integration requirements. As such, investors may increasingly view residency as a long-term strategy rather than a quick fix.
User Reactions
ExpatGuide: I’m glad I finalized my Maltese passport earlier, but now I worry how other EU states will treat it. WealthManager_Lux: This decision reshapes the entire investment migration industry. We will need to pivot client strategies toward Portugal and emerging options.
Editor’s Note
The closure of Malta’s Golden Passport marks the end of an era. It reflects the EU’s tightening stance on investment citizenship and underscores the importance of choosing programs aligned with long-term policy stability. For investors, Malta will remain an attractive place to live and do business, but citizenship is no longer on the table.
