The European Union’s highest court has delivered a landmark ruling against Malta’s Individual Investor Programme (IIP), declaring that granting citizenship solely in exchange for financial investment breaches EU law. This decision could mark a defining moment for the future of investment migration within the European Union.

The Court’s Position

In its judgment issued on 29 April 2025, the Court of Justice of the European Union (CJEU) stated that Malta’s golden passport scheme undermines the concept of genuine ties between a citizen and a member state. The court concluded that awarding nationality without requiring any real connection — such as residency, integration, or cultural participation — violates the principle of sincere cooperation and the integrity of EU citizenship itself.

The court further noted that member states cannot treat citizenship as a tradable commodity, given that EU citizenship comes with extensive rights, including free movement, residence, and employment across all EU countries.

Implications for Malta and Other Member States

Malta had previously resisted calls to end the scheme, arguing that decisions about nationality fall within national competence. However, the CJEU ruling significantly restricts this argument by clarifying that while nationality laws are under national control, they must be exercised in alignment with EU obligations.

As a result, Malta is now under pressure to either suspend or radically reform its citizenship programme. While existing citizenships already granted are unlikely to be revoked, the future of new applications appears uncertain.

This ruling could also affect any other EU member state considering similar fast-track citizenship routes based solely on investment, reinforcing the EU’s stance on upholding the depth and dignity of citizenship rights.

What This Means for Investors

This decision may create temporary uncertainty for applicants seeking a direct route to EU citizenship through investment. Individuals who have already obtained Maltese citizenship are unlikely to be affected in the immediate term, but the ruling may raise questions about long-term acceptance and recognition across the Union.

For prospective investors, the focus may now shift from citizenship-by-investment programmes to robust residency-by-investment schemes, which involve legal residence, taxation, and demonstrable economic contribution.

Coates Global’s Perspective

At Coates Global, the long-anticipated ruling confirms the importance of advising clients on sustainable, compliant, and future-proof migration solutions. While fast-track citizenship programmes offered short-term appeal, the legal and political scrutiny surrounding them has intensified.

Residency programmes, particularly those requiring real estate, fund-based investment, or business activity — such as those in Portugal, Greece, and Cyprus — continue to offer practical long-term pathways to eventual citizenship, while maintaining compliance with EU regulations.

As governments adapt their immigration strategies, so too must investors. Coates Global remains committed to guiding its clients through these evolving frameworks with clarity, foresight, and absolute professionalism.