Golden Visas rising as Golden Passports fall?

On April 29, 2025, the Court of Justice of the European Union (CJEU) delivered a landmark ruling declaring Malta’s “golden passport” scheme incompatible with EU law. The judgment effectively marks the end of an era in which citizenship could be purchased with minimal ties to the country, raising fundamental questions about the nature of EU citizenship itself. In response, the Maltese government has pledged to reform its citizenship legislation to comply with the ruling.

Launched in 2014 and amended in 2020, Malta’s Individual Investor Programme (IIP) allowed foreign nationals to acquire citizenship in exchange for a substantial financial contribution, starting at €600,000, alongside real estate investment, a donation to a local NGO, and a minimum one-year residency period without however continuous or substantive physical presence in Malta. In practice, critics argued the programme offered fast-track citizenship with minimal physical or cultural ties to Malta. The scheme was viewed not only as legally problematic but also as ethically questionable and a potential security risk. While similar schemes once existed in Cyprus and Bulgaria, Malta became the last EU member state to continue selling direct access to EU citizenship.  Cyprus abolished its scheme in 2020 following allegations of abuse, while Bulgaria discontinued its programme in 2022 after facing sustained criticism from the European Commission. Against this backdrop, the European Commission intensified its scrutiny and initiated legal action against Malta in 2022.  Now, the CJEU ultimately ruled that Malta’s golden passport scheme violated EU law. The court found that selling citizenship as a commercial transaction undermines the principle of sincere cooperation between member states and erodes the mutual trust underpinning EU citizenship, a status meant to reflect genuine integration, not economic privilege.

As an immediate reaction, Malta´s government is moving to bring its citizenship law in line with the judgment.  Only two months after the ruling, a bill was presented in Parliament for its first reading, marking the first step in the process towards compliance with the CJEU judgement.  The details of the proposed amendments have not yet been disclosed, leaving it unclear whether the scheme will be abolished entirely or revised to align with the principles outlined in the judgment. Key reforms that can be expected include stronger residence requirements and “genuine link” prerequisites, more rigorous due‑diligence and vetting, as well as safeguards to prevent purely transactional acquisitions.

Moreover, no retroactive revocation is to be expected, meaning that Individuals who secured passports before the judgment remain citizens of Malta and the EU, though their status may face heightened scrutiny.  Additionally, citizenship applications submitted before the ruling may still be processed under the previous framework.  As the Maltese government reviews the legal implications of the ruling, it is hoped that the release of more details soon will provide greater legal certainty.

With golden passports now effectively off the table for Malta, this development also marks the end of cash-for-citizenship schemes in the EU.  As a result, predictions suggest that wealthy applicants will now turn to golden visa programmes or other non-EU options, such as the U.S. EB-5 or Caribbean schemes.  For Malta, this could translate into a boost in demand for its residency-by-investment golden visa scheme, the Malta Permanent Residence Programme (MPRP).

The MPRP grants permanent residency in Malta to third-country nationals in exchange for a combination of government contributions, property investment or rental, and proof of sufficient financial resources.  While it does not offer citizenship, it allows successful applicants and their families to live in Malta indefinitely and enjoy visa-free travel across the Schengen Area for up to 90 days within any 180-day period. Importantly, the programme does not require physical residence or integration in Malta, making it particularly attractive to high-net-worth individuals seeking flexibility and EU access without relocation.  The scheme has drawn strong interest from nationals of China, Turkey, the Middle East and South Africa, many of whom are seeking a stable legal foothold in Europe for lifestyle, education, or strategic mobility purposes.

However, as the golden passport case also raised questions about the legality of similar investment-based residency schemes across the EU, it is expected that increased pressure and scrutiny could now be placed on golden visa schemes, reflecting the shifting EU policy landscape in general. In 2022, the European Parliament called for a phasing out of all golden visa and passport schemes. Portugal, Ireland, the Netherlands, and other countries have already suspended or revised their Golden Visa schemes.  Thus, Malta’s MPRP may soon attract greater regulatory scrutiny, especially if it becomes a de facto backdoor to EU access.

As Malta turns the page on its golden passport era, the country and the EU at large face a pivotal moment in defining the value and integrity of citizenship and residency.  While the MPRP may benefit from increased interest in the short term, its long-term viability could depend on how well it withstands both legal and political scrutiny.