Concept
Malta was the last EU country with a direct citizenship-by-investment programme: a contribution to the state in exchange for a Union passport. On 29 April 2025, the Grand Chamber of the EU Court of Justice put an end to this model, ruling it incompatible with EU law. The path to Maltese citizenship on special grounds has nonetheless survived—in a truncated, merit-based form.
Judgment in Case C-181/23
In "Commission v Malta" (C-181/23), the EU Court unanimously held that Malta's 2020 scheme effectively commodified the grant of Union citizenship and violated Article 20 TFEU on EU citizenship together with Article 4(3) TEU on sincere cooperation. The main reproach: issuing a passport for a predetermined payment without a genuine link to the state. Previously issued passports remain valid.
⚙️ The Court did not prohibit EU countries from deciding who becomes their citizen. What was banned was the specific transactional model—citizenship in exchange for a predetermined financial contribution without a real connection to the country.
What Remains: Merit-Based Naturalization
Malta responded differently: instead of complete abolition, it strengthened an already existing institution—naturalization for exceptional merit under Article 10(9) of the Citizenship Act, in force since 2017. The bill was introduced on 30 June 2025, with secondary legislation following later that year. The reform removed transactional elements and left a pathway for truly outstanding individuals—scientists, athletes, cultural and academic figures whose merits are recognized by the state.
Practical Outcome
🔗 Related
Citizenship by Investment · Second Passport and Plan B · Turkey Citizenship by Investment · CBI St Kitts and Nevis · CBI Grenada · Passport Index
Direct investment purchase of a Maltese passport in its former form no longer exists. Merit-based naturalization remains, but it is a narrow channel for exceptional cases, not a scalable product for investors. Those who considered Malta as a fast track to EU citizenship should logically switch to residence programmes and ancestry routes, and seek investment citizenship outside the Union—in the Caribbean or Turkey.
🍓 After case C-181/23, Malta's golden passport is closed. What remains is naturalization for exceptional merit under Article 10(9)—a narrow merit-based channel not designed for the typical investor.
This material is of an expert-analytical nature and does not constitute individual legal or tax advice.
Key factual claims
- Malta responded differently: instead of complete abolition, it strengthened an already existing institution—naturalization for exceptional merit under Article 10(9) of the Citizenship Act, in force since 2017.
- Related links: Citizenship by Investment · Second Passport and Plan B · Turkey Citizenship by Investment · CBI St Kitts and Nevis · CBI Grenada · Passport Index · EUR-Lex — judgment C-181/23 ↗