By Julian Bartolo
Executive Director, Endevio Group
The Attorney General's Opinion: A Surprising Start
In October 2024, the European Court of Justice (ECJ) received a recommendation from the Advocate General of the Court, which stunned many legal and political observers across Europe. The suggestion was clear: the case brought forward by the European Commission against Malta regarding its Citizenship by Investment programme should be dismissed. The rationale? According to the Advocate General, there was no solid legal basis under EU law to interfere with a Member State's sovereign right to determine who qualifies for its nationality. This recommendation momentarily reassured stakeholders within the investment migration industry, as it reinforced the long-held position that citizenship is a national competence under Article 4(2) of the Treaty on European Union.
However, legal opinions are not judgments, and the EU institutions had signaled for years their growing unease with the concept of "citizenship for sale". The decision to proceed with the case, despite the AG’s dismissal recommendation, suggested that the issue was not merely legal—but deeply political.
Events Leading to the Final Ruling
Following the Advocate General's opinion in October 2024 recommending the dismissal of the case against Malta, the European Commission reaffirmed its position that Malta’s investor programme compromised the integrity of EU citizenship. The Commission argued that the programme allowed individuals to obtain Maltese and by extension, EU citizenship, purely through a financial contribution.
Despite the AG’s opinion, the Commission proceeded with the case, citing serious concerns about the programme's compliance with the principles of sincere cooperation under Article 4(3) of the Treaty on European Union. In the following months, the Commission submitted further documentation reinforcing its position, and Malta formally contested the claims, arguing that nationality decisions fall under exclusive national competence.
Meanwhile, the European Parliament adopted resolutions critical of Citizenship by Investment schemes, echoing earlier concerns about security risks, money laundering, and the lack of harmonisation across Member States. The Council of Europe’s anti-corruption body, GRECO, and the OECD also issued opinions and reports scrutinising such programmes, further increasing international pressure on Malta.
By early 2025, Malta continued to defend the legality of its revamped programme, by then known as the Malta Exceptional Investor Naturalisation (MEIN), emphasising the due diligence measures, extended timelines, and residency requirements introduced after 2020. However, the European Commission maintained that these changes did not sufficiently address the structural issues identified in its legal challenge.
The ECJ Ruling Explained
On the 29th of April 2025, the ECJ delivered its final ruling, a nuanced decision that, while not entirely condemning Malta’s past actions, marked a significant shift in the landscape of EU investment migration.
In clear terms, the Court acknowledged that the granting of nationality remains a national competence. However, it drew a new legal distinction, in short stating that when the effects of that national decision extend beyond the borders of the Member State and therefore through EU citizenship, then EU law may have a say.
Specifically, the ECJ found that Malta’s citizenship by investment programme, in its design, lacked a sufficiently substantive link between the applicant and the country. Residency requirements were minimal, integration efforts were not mandatory, and citizenship could be granted within a short period in exchange for a financial contribution alone.
Importantly, the ruling did not outlaw all forms of investment migration. Instead, it called for a framework that ensures genuine connection, transparency, and alignment with the values of the Union. The change in course from the initial AG opinion to the final ruling reflects the Court’s responsiveness to broader political concerns and not just the legal technicalities.
Malta’s Government Response and Local Views
The Maltese Government responded to the ruling with a tone of measured acceptance and forward-looking determination. In an official statement, they affirmed their respect for the decision of the ECJ and emphasized that national sovereignty will continue to be defended within the bounds of European law.
Locally, the ruling has sparked mixed reactions. Some citizens and civil society leaders welcomed the outcome, viewing it as a chance to recalibrate the country's international reputation. Others, particularly in business circles, expressed concern over the economic impact on sectors that had grown around the scheme.
Nevertheless, the Prime Minister of Malta has vowed to keep on fighting for Malta's interests in the wake of a European Court ruling against the government's citizenship programme and while respecting the Court’s decision, they will immediately ensure that the framework of the programme is redesigned to comply with the judgment. This could not only fulfil the EU's expectations but also position Malta as a leader in a more sustainable model of investment migration.
A Positive Shift: The Way Forward
While the ECJ ruling marks the conclusion of one chapter, it presents an opportunity for Malta to redefine its residency and citizenship programmes with a stronger emphasis on contributing to the country’s economic growth. This approach aims to align with EU norms and ensure transparency, providing a robust framework for high-net-worth individuals to invest in Malta’s economy and society.
What This Means for Investors
For investors, the ECJ’s decision is a reminder that investment migration is evolving—and that adaptability is key. The ruling does not shut the door on citizenship or residency through investment, but it raises the bar.
Future programmes will likely demand greater engagement, focusing on genuine ties to the country, and demonstrable investments. Investors should seek jurisdictions with strong compliance frameworks and transparent governance.
In essence, the Maltese experience underscores a broader shift in the industry, from transactional models to relational ones. For investors who view citizenship not just as a passport but as a meaningful affiliation, this evolution represents not a setback, but an opportunity.
Agenzija Endevio Ltd is authorized to act as an Accredited Agent by Agenzija Komunita Malta through license number AKM-AGEN