An IMGW News Report – Updated on July 4th, 2025
Valletta, June 30, 2025: Malta has tabled legislation to overhaul its citizenship-by-investment programme, after the European Court of Justice (ECJ) ruled that granting passports in exchange for capital contributions violated EU law.
The draft bill, introduced in Parliament on Monday, marks the government’s first step towards compliance with the April judgment, which many industry observers consider potentially politicised. The ruling accused the programme of commercialising EU citizenship and undermining mutual trust among Member States.
“… investment migration professionals and policymakers across Europe are now watching closely to see what course Malta charts next”
Applicants were required to invest between €600,000 and €750,000, purchase property and donate to Non-Governmental Organisations (NGOs), including charities. Despite such conditions, the Court determined these measures fell short of establishing a genuine connection with the country.
While generating under 1% of the small EU island state’s GDP, the Maltese government has emphasised that the programme generated more than €1.4 billion in revenue since its inception in 2014, funding social housing, healthcare, heritage restoration, and other initiatives. Officials maintain that the framework was implemented with rigorous due diligence and transparency.
In its official statement following the ruling, Malta reaffirmed its respect for decisions of the Court of Justice of the European Union. Deputy Prime Minister Ian Borg stated, “Rulings of the Court of Justice of the European Union are binding on Member States, and Malta will, as always, respect the outcome.”
At the same time, the government has consistently argued that decisions about citizenship remain a matter of national competence under EU treaties. While acknowledging the need to bring regulations into line with the judgment, it stressed that individuals who already acquired citizenship will not be affected.
Genuine-Link Rules Likely to Define the New Programme
The development highlights the EU’s tightening stance against investment migration programmes perceived to dilute the concept of European citizenship. With Cyprus and Bulgaria having already ended similar pathways under pressure from Brussels, industry insiders believe that Malta’s move signals a likely shift towards residence-based models requiring deeper personal ties.
While offering EU Schengen access and the opportunity to reside in one of Europe’s more dynamic economies, Malta’s citizenship-by-investment programme long occupied a leading position in the sector. It is unsurprising that investment migration professionals and policymakers across Europe are now watching closely to see what course Malta charts next.
