Last Updated on 4th August 2025
Following a prolonged debate, the Maltese government has announced that, in response to a ruling by the European Court of Justice, the citizenship by investment program, often referred to as the golden passport, will be abolished.
While this does come with plans to extend the criteria and eligibility for residents and foreign nationals to qualify for citizenship by merit, there will undoubtedly be disappointment and disruption for expats who have already applied or are currently planning a relocation.
Let’s review the latest updates, the reasons behind the decision, and the best course of action for expats who are only now learning that their intended move to Malta may require an alternative visa.
Why Is Malta Closing the Golden Passport Scheme?
The European Union has long led criticisms of citizenship by investment programs, leading to several other comparable schemes in other countries being closed.
This debate centres around the nature of a golden passport, which allows foreign nationals to effectively purchase citizenship, provided they meet criteria such as having a minimum level of wealth and making a series of property purchases and financial contributions.
In April, the European Court of Justice ruled that the initiative, officially known as the Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment, is illegal and contradicts the frameworks that all EU member countries are required to abide by.
The issue is that if an expat secures a second passport in Malta, the freedom of movement rules mean they are entitled to live, work, and study in any other EU member country, something the courts have decided is a commodification of the basic meaning of being an EU citizen.
Other critics perceive golden passports as an unfair privilege, given the time it takes for applicants to achieve citizenship through any other route, including naturalised citizens who may have lived and worked in a country and made tax contributions for many years.
While the Maltese government is still reviewing the implications, the only likely outcome is that the scheme will close with immediate effect. However, there is an expectation that this will not impact applications that had already been submitted before the ruling was made.
How Will Visa Regulations Adapt Following the End of Maltese Citizenship by Investment?
In the meantime, the Maltese government has shared a set of proposed amendments to its legislation, as covered by the Maltese Citizenship Act, to demonstrate how it will comply with the instructions issued by the courts.
While this doesn’t mean new legislation is already in place, or that further changes might not be made, it does give us a good idea about what those reforms will look like:
- Citizenship applicants may still be able to secure Maltese citizenship, but only based on ‘earning’ citizenship by merit, such as by adding value to the economy or creating employment.
- Ministers will retain the power to grant citizenship by naturalisation to a foreign national, but the exceptional services that qualify will not include financial contributions, real estate investments or donations.
- Exceptional services are expected to relate to professions and skills in demand, including scientists, athletes, researchers, entrepreneurs, and professionals in fields such as technology, culture, art, and philanthropy.
This will likely work similarly to alternative visas, many of which offer residency rather than citizenship but are designed to fill gaps in the skills market and enable established and experienced professionals with a sought-after area of expertise to relocate.
However, the proposed new legislation also states that the existing golden passport will be abolished in its entirety, rather than being updated with a new set of criteria. This move is more likely to satisfy the expectations of the courts.
What Impacts Will the Closure of the Golden Passport in Malta Have?
The direct effect of these latest announcements will mean that any expats from outside the EU who were expecting to apply for the golden passport will now need to either rethink their plans or decide whether an alternative visa is appropriate.
There are also major impacts on businesses. Corporations have long regarded golden passports as a fast-track way to help executives and investors relocate to the EU, thereby providing revenue for relocation consultants and property agents.
Data shows that since the golden passport was introduced in 2015, it has generated an economic influx of more than €1.8 billion, a figure that might not be surprising when we consider that each applicant would need to:
- Invest at least €600,000 in a 36-month pre-citizenship residency period, extending to €750,000 for fast-track entry
- Make a non-refundable contribution to Malta’s National Development and Social Fund
- Purchase a property worth €700,000 or more, or rent a property for a minimum number of years for at least €16,000 a year
- Donate at least €10,000 to a registered NGO in Malta
Although applications were capped at 400 per year, the visa has been running for a decade. While some outcomes may be positive, such as reduced pressure on the housing market, there will be a knock-on economic effect due to these lost revenues.
Alternative Options for Expats Planning a Move to Malta Under the Golden Passport Scheme
It’s essential to note that alternative visa programs exist. Although citizenship by investment will cease to be an option, there’s no indication that residency by investment will be banned, although changes are possible.
The court ruling applies specifically to the commercialisation of citizenship. It doesn’t necessarily mean there will be any changes to other programs. Still, the Maltese government may propose further amendments to tighten the eligibility criteria for this separate visa scheme.
Currently, permanent residents can apply for Maltese citizenship after at least five years, which could be a simplified route to citizenship. However, they can also continue to live in Malta indefinitely as legal residents, provided they continue to meet the visa conditions.
Our advice for any expat affected by this news, or who is unsure whether their plans can now go ahead, is to contact our specialist Malta advisory team at Chase Buchanan Private Wealth Management. Our independent financial and wealth management teams can review your circumstances, provide more tailored guidance, and ensure you make informed decisions about the next steps.
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
*Information correct as at July 2025
