A Historic Ruling That Shakes the Industry
In a long-awaited decision, the European Court of Justice (ECJ) ruled that Malta’s citizenship-by-investment scheme, often referred to as the “Golden Passport” program, violates EU law. This ruling marks a major turning point in the European Union’s approach toward investment migration policies that directly lead to citizenship without meaningful ties to the country.
The judgment asserts that citizenship cannot be granted solely based on a financial contribution, especially if the applicant has no genuine connection to the granting country. The ECJ emphasized that EU citizenship is not a commodity, and member states must act in the interest of the Union as a whole when conferring such rights.
This decision has put other similar programs under the microscope — particularly those operated in the past by countries like Cyprus and Bulgaria, both of which had already discontinued their schemes under EU pressure.
Yusuf Boz: “Citizenship by Investment Is Being Redefined”
Yusuf Boz, founder of the international investment advisory firm Notte Global, shared his thoughts on the implications of this ruling:
“The ECJ’s ruling is not just about Malta. It is a clear signal that the EU is drawing a line between residence-based investment migration and direct-to-citizenship models. For years, we have advised our clients to favor residency routes, such as Golden Visa programs, which are more sustainable, lawful, and offer a clear path to long-term settlement.”
According to Boz, the Maltese program was always seen as controversial within the European political space. What made it particularly sensitive was the immediate conferral of EU citizenship, which allows free movement, work, and residence across all EU member states — a powerful right being granted essentially overnight in exchange for capital.
“As investment migration professionals,” Boz added, “we have a responsibility to guide our clients toward options that align with both legal frameworks and ethical standards. This ruling confirms what many of us in the industry have anticipated — a shift toward more robust and transparent Golden Visa structures.”
Notte Global’s Outlook: Residency Is the Future
At Notte Global, the focus has increasingly turned to Golden Visa residency programs, such as those in Greece, Portugal, Latvia, and Lithuania. These programs require investors to make property or fund investments and typically offer residency permits, with the possibility of permanent residency or citizenship only after several years of living in the country.
“There’s a significant difference between giving someone a passport and giving them a path to earn it,” Yusuf Boz explained. “Residency-by-investment programs strike that balance. They support local economies through legitimate investment and offer gradual integration, rather than instant privileges.”
Boz emphasized that Greece’s Golden Visa program, now starting from €250,000 for selected properties, and Latvia’s affordable €75,000 company investment visa, are examples of programs that work within the EU’s legal framework while still offering strong benefits to international investors
Investor Confidence and Market Reaction
The ECJ’s decision has prompted concern among current and prospective investors who have either obtained or are considering applying for citizenship through Malta’s program.
Yusuf Boz believes this moment represents a wake-up call for investors who prioritize quick gains over long-term legal security:
“The message is clear: instant citizenship schemes are under threat. Investors should re-evaluate their strategies and seek long-term value, not shortcuts.”
He also reassured current clients that Malta’s residency programs, which offer long-term stay but not immediate citizenship, remain unaffected by this ruling — and still present viable options for those seeking access to the EU.
What’s Next for Malta and the EU?
Malta’s government has yet to announce how it will respond, but EU authorities have indicated that non-compliance could result in infringement procedures, putting further pressure on the island nation to dismantle the golden passport program entirely.
Industry observers, including Boz, are now watching to see whether similar rulings will follow for other countries that have explored or implemented fast-track citizenship programs, even outside of the EU.
“This is not the end of investment migration,” Boz concluded, “but it is the end of the road for schemes that bypass the spirit of EU unity and integration. The future lies in well-structured, law-abiding residency programs, and Notte Global is committed to leading that evolution.”
