Malta’s CBI Program at a Crossroads: ECJ Ruling Sets New Path for Investment Migration

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In a major decision, the European Court of Justice (ECJ) has ruled that Malta’s Citizenship by Investment (CBI) program, in its current form, is incompatible with European Union law. While the Court reaffirmed the general sovereignty of member states over nationality, it emphasized that granting citizenship purely through predetermined financial transactions, without a sufficient “genuine link” to the country, undermines EU principles.

This pivotal ruling has significant implications, not only for Malta, but for the entire investment migration profession across Europe.

Understanding the ECJ Decision

The European Commission challenged Malta’s program on the grounds that it commercialized EU citizenship. The EU’s Advocate General Collins had previously issued an opinion in favor of Malta, but the Court ruled otherwise.

Key points from the judgment:

• National Sovereignty within Limits: Member States control nationality but must comply with overarching EU principles.

• No Commercial Transactions: Granting citizenship directly in exchange for investment violates the principle of sincere cooperation among EU states.

• Solidarity and Genuine Links: Citizenship must reflect a real bond of solidarity, not solely a financial transaction.

The ECJ found that Malta’s 2020 investor citizenship scheme, which allowed naturalization mainly through investment without substantial ties, failed to meet these criteria.

While the decision requires Malta to reform its CBI framework, it does not invalidate Malta’s sovereign role in administering citizenship — it simply imposes additional obligations to ensure compliance with EU values.

Implications for the Malta Citizenship by Investment Programme

This decision means that Malta’s current CBI program must be amended to bring it into conformity with EU law.

Latitude is actively engaging with Malta’s Citizenship by Investment Unit to:

• Understand the full scope of necessary changes,

• Support the design of a compliant future framework,

• Advise investors on transition strategies.

As COO and Managing Director of Latitude Malta Ryan Darmanin notes:

“Latitude is committed to supporting Malta’s program evolution. We are working closely with government authorities to ensure a seamless transition that safeguards investor confidence and preserves Malta’s reputation for excellence.”

Latitude Group,  a government advisor with over a century of collective experience advising on global investment migration frameworks, is uniquely positioned to assist governments and investors in adapting to this new legal environment.

Future of Investment Migration

While the ruling marks the end of Malta’s current CBI model, it also opens the door to a new generation of investment migration programs — ones built on genuine connection, economic impact, and EU law compliance.

The $25 billion investment migration profession is evolving. Investors now seek not only opportunity, but programs with solid legal foundations and international credibility.

Latitude is liaising with the Citizenship by Investment Unit to determine the next chapter of residence and citizenship in Europe. 

Contact our experienced advisors today to stay informed on this transitional period.