The EU's Landmark Malta Ruling Reshapes Global Citizenship

The End of Golden Passports: How the EU's Landmark Ruling Reshapes Global Citizenship

A Seismic Shift in EU Citizenship

On April 29, 2025, the European Court of Justice delivered a verdict that will forever alter the landscape of investment migration: EU citizenship cannot be sold. The court's unequivocal ruling states that without a "genuine link" to a member state, no passport may be issued – financial investment alone is insufficient.

This landmark decision effectively terminates Malta's controversial golden passport program and signals a clear warning to similar schemes across Europe, fundamentally redefining how citizenship is conceived within the European Union.

What makes this ruling particularly surprising is that it contradicts the earlier opinion from the Advocate General, who had recommended dismissal of the case. The implications run deeper than most realize, with ripple effects that will transform the citizenship landscape for years to come.
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The Court's Decision: No Room for Interpretation

The Court's decision, based on Article 20 TFEU and Article 4(3) TEU, established three critical principles:

1. EU citizenship requires a "genuine link" to the member state
2. Citizenship cannot be treated as a commercial transaction
3. Member states must respect the shared nature of EU citizenship when naturalizing new citizens

What makes this ruling particularly significant is its scope. This isn't just about Malta. The precedent established means that any systematic, transactional citizenship scheme in the EU is now effectively illegal.

This ruling brings to light a fundamental tension at the heart of the European project: the balance between national sovereignty and EU-wide governance. The EU has always operated as a collection of sovereign states, governed by shared rules written and enforced by supranational bodies.

Malta insisted that determining who becomes Maltese is exclusively its business. The ECJ countered that when Malta creates new citizens, it's simultaneously creating new EU citizens—and that crosses a boundary that only Brussels can define.

Portugal's Golden Visa

It's slower and demands more from applicants, citizenship will take about 7 years, but crucially, it aligns with what the EU now considers acceptable: residency with substance, not citizenship for convenience.

1. Make a qualifying investment (funds only – real estate was eliminated in 2024)
2. Maintain modest physical presence (14 days every two years whilst holding the card)
3. After 5 years of lawful residency, apply for naturalization under standard rules (including basic A2 language proficiency)

In 2023, over 1,200 RBI permits were issued despite tighter regulations and the number was rising even before this Malta ruling. With demand increasing and supply constrained, prices will inevitably follow, climbing as they have done, from €250K to today's €500K requirement.

Strategic Moves: Quality Over Speed

There's a temptation in moments like this to panic and rush toward the next loophole before it closes, ignoring the fact that this is a new court ruling, the cogs of bureaucracy move slowly in Europe, and the Portuguese program can defend itself as a program that requires substance, a real commitment beyond just capital.

Portugal remains the most coherent option in Europe right now, the result of a deliberate design choices that emphasized legal residency over shortcuts, genuine connection over convenience.

For those considering their options, here's what matters now:

1. Path quality matters more than path speed
2. Timing is critical – viable programs are seeing increased demand

Key Developments to Watch

Looking ahead:

1. Portugal will face pressure. While the RBI program remains viable, increased scrutiny from Brussels is inevitable. This will likely affect the conditions for participation, most likely including the amount of time spent in the country and the cost of access.
2. Transition periods will be critical. Programs that do adjust will likely offer grandfathering provisions – but only for those already in the system.

As the EU continues to redefine its approach to citizenship and residency, it is our view that Portugal's Golden Visa aligns with the EUs new regulatory reality. It offers a slower but more sustainable pathway to EU citizenship.