An IMGW News Report
Updated with a statement from the Maltese Government.
The European Court of Justice (ECJ) has delivered a landmark ruling against Malta’s citizenship-by-investment programme, concluding that the scheme violates European Union law by offering passports without requiring a “genuine link” to the country.
The judgment, issued on 29 April 2025, marks a decisive moment in the long-running case brought by the European Commission against Malta. The Court found that granting citizenship primarily in exchange for payment undermines the mutual trust between Member States and the very concept of EU citizenship. Crucially, the Court stated that citizenship must not be treated as a tradable commodity and must be linked to a meaningful connection with the issuing country.
While Malta had introduced reforms to the programme in 2020 – such as requiring investments of at least €600,000, charitable donations, property purchases, and a minimum one-year residency – the Court ruled that these measures were insufficient to establish the genuine link required under EU law.
“Rulings of the Court of Justice of the European Union are binding on Member States, and Malta will, as always, respect the outcome.”
– Dr Ian Borg, Malta’s Deputy Prime Minister
The decision could have far-reaching consequences across the investment migration sector. It reaffirms the European Commission’s stance that golden passport programmes are incompatible with EU principles. The Court’s reasoning also sends a strong message to other jurisdictions that have operated or considered similar schemes. Cyprus and Bulgaria had already ended their own citizenship-by-investment programmes following EU pressure in recent years.
Industry observers now await how Malta will respond. The ruling significantly limits the ability of EU Member States to operate direct citizenship-by-investment programmes and may encourage a shift toward residence-based models, where genuine ties such as long-term physical presence are more clearly established.
This decision not only reshapes the debate around national sovereignty and EU oversight but also calls for a renewed focus on programmes that balance investor interest with strict compliance to European legal and ethical standards.
Reaction from the Maltese Goverenment
In response to the Court of Justice of the European Union’s ruling, the Government of Malta issued a statement affirming its respect for the decision, while emphasising that issues relating to citizenship remain a matter of national competence. The Government noted that it is currently analysing the legal implications of the judgment and will bring its regulatory framework, administered by the Community Malta Agency, in line with the principles outlined by the Court. It also stressed that decisions taken under both the current and previous legislative frameworks remain valid.
The Government defended the legacy of its citizenship-by-investment programme, highlighting that it generated more than €1.4 billion in revenue since 2015. Funds collected through the programme were partly directed to the National Development and Social Fund (NDSF), which financed social housing projects, healthcare investments, education initiatives, restoration of national heritage, and sports infrastructure. Additional economic benefits included significant contributions to the property market and direct philanthropic donations to Maltese voluntary organisations. Stressing that Malta was not the only Member State to operate such a framework, the Government called for national unity in the next phase of adjustments and criticised domestic political opponents for, it said, seeking to undermine Malta’s defence of its sovereignty before European institutions.
Deputy Prime Minister Ian Borg Reaffirmed Malta’s Commitment to EU Compliance
In a January 2025 interview with IMGlobal Wealth, Malta’s Deputy Prime Minister and Foreign Minister, Dr Ian Borg, underscored the significance of the country’s investment migration initiatives.
He stated, “Malta’s Investment Migration programmes have been pivotal in attracting foreign direct investment (FDI), which has contributed to the country’s economic growth and development.” Dr. Borg emphasised that such programmes are integral to Malta’s strategy of leveraging its unique position as a small island state to attract sustainable investment and talent. IM Global Wealth
Reflecting on the recent European Court of Justice ruling, Dr Borg reiterated Malta’s commitment to aligning its policies with EU law while safeguarding national interests. He remarked, “Rulings of the Court of Justice of the European Union are binding on Member States, and Malta will, as always, respect the outcome.”
He further noted that the government is diligently reviewing the judgment’s implications to ensure that the country’s legal framework aligns with the principles outlined by the Court. IM Global Wealth
For more insights from Dr Borg, refer to the full interview published on January 25, 2025: IM Global Wealth.
IMGW will continue to monitor and report on developments impacting investment migration worldwide.
