Malta Citizenship by Investment EU Court Case: Advocate General Backs Malta
April 10, 2025 · Malta · 10 min read
The Malta citizenship by investment EU court case pits the Government of Malta against the European Commission (EC), and industry professionals and international investors are following it closely.
Malta’s citizenship by investment program, at the time of writing the only citizenship by investment program still operating in the European Union, is drawing close attention from industry professionals and international investors as it sits at the center of a legal case between the Government of Malta and the European Commission (EC). In March 2023, the Commission brought an action against Malta before the Court of Justice of the EU, seeking to end the program. In the Commission’s view, granting EU citizenship to foreign nationals solely in exchange for a financial investment, without requiring a genuine link to Malta, undermines the core value of EU citizenship.
The latest developments, however, suggest that Malta holds a clear legal advantage and lend support to the legality and durability of the program.
The Maltese government’s position
The Government of Malta rejects the allegations outright, maintaining that the right to set the conditions for acquiring citizenship is an integral part of national sovereignty, protected by Article 9 of the Treaty on European Union (TEU). Malta also stresses that its current citizenship by investment (CBI) program:
- Is not an automatic “sale of passports”;
- Applies a rigorous due diligence process, with a denial rate of up to 33%;
- Requires applicants to hold lawful residence in Malta for 12 to 36 months, depending on the investment level;
- Is designed to ensure a lasting economic contribution to the country.
Malta also rejects the argument that a “genuine link” (a real connection between the individual and the country granting citizenship) is required, since no provision of the EU Treaties makes this a condition for granting citizenship.
The Advocate General’s opinion: Malta has the legal edge
On October 4, 2024, Advocate General Anthony Collins of the Court of Justice of the European Union (CJEU) delivered a non-binding opinion in Commission v Malta, recommending that the Court dismiss the Commission’s action.
In his view, EU law provides no clear legal basis for intervening in a Member State’s decisions on granting citizenship.
He affirmed that granting citizenship is a matter for each Member State, provided it does not breach international law or EU law. Malta has the right to decide to whom it grants citizenship, and this falls outside the EU’s competence.
The Advocate General also noted that if the Member States had ever wished to give the EU control over the recognition of citizenship, they could have done so through the Treaties, but they did not. This confirms the Member States’ right to decide for themselves in matters of citizenship.
Although the Advocate General’s opinion is not legally binding, it often carries considerable weight with the Court in reaching its final judgment. As things stand, Malta has the upper hand in this case.
The legality and stability of Malta’s citizenship program
Malta’s citizenship by investment (CBI) program has operated since 2014 under a legal framework enacted by the Maltese government. It allows investors and their families from countries outside the EU and Switzerland to acquire Maltese citizenship by naturalization and enjoy the full rights of Maltese and EU citizens.
As a member of the European Union, Malta is committed to upholding the bloc’s principles, while retaining its autonomy in setting citizenship criteria, a competence protected by the EU’s founding Treaties. The Government of Malta has repeatedly stated that its citizenship program is not a simple “purchase of a passport” but a thorough vetting process, with a denial rate of up to 33%.
Based on the legal analysis above, Malta’s citizenship program:
- Is built on a legal framework that Malta maintains is consistent with international law and EU rules;
- Operates transparently, with rigorous due diligence and no mass granting of citizenship;
- Has received strong support from the Advocate General at the Court of Justice of the EU.
These points support the view that Malta’s citizenship by investment program is lawful and well regulated, and unlikely to be abolished easily.
Expected outcome and impact of the ruling
If Malta wins:
- Malta’s CBI program would remain lawful;
- It would set a precedent protecting national authority over the granting of citizenship;
- It could encourage countries such as Austria and Bulgaria to consider introducing or reinstating similar programs.
If the EC wins:
- Malta would be required to close its CBI program;
- Other EU countries could be required to adjust or end their existing residency and citizenship by investment programs;
- The European Union could extend its legislative authority into the field of citizenship.
Although Malta holds a clear advantage over the European Commission, the Court of Justice of the EU has yet to deliver its final judgment (expected in the second quarter of 2025, as of the time of writing). In the less likely event that the Court accepts part of the Commission’s position, this could lead to policy adjustments in the future.
Based on current developments, the risk of the program being adjusted or closed in the near term appears low. The Advocate General’s recommendation to dismiss the case is a positive signal that Malta is still able to defend its position before the EU. That said, there is no certainty that the program will remain in place indefinitely, as political factors and EU-level rules may change in the future.
For investors seeking European citizenship, this may therefore be a good time to review their options. Applying under the program’s current terms may help limit exposure to legal risk should the rules change in the future.
If you are considering Malta’s citizenship by investment program, we invite you to speak with IMM Group’s advisory team for detailed information and a private consultation. We are committed to keeping your personal data confidential and use the information you provide solely to advise on your family’s case.
IMM Group
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