As Malta Golden Passport Likely Ends, Demand For Golden Visa Rises
Golden passport and visa programs offer high-net-worth individuals a fast track to citizenship or residency in exchange for substantial investments. Often seen as a gateway to global mobility, these programs provide access to visa-free travel, tax benefits, and enhanced security. However, they are not without controversy, with critics arguing they promote inequality and pose risks of misuse.
The recent declaration by the highest EU court that the Malta golden passport program is illegal has caused a stir. More generally, it's essential to know that:
A golden passport or golden visa program is the name commonly given to Citizenship-by-Investment (CBI) plans that offer a fast track to residency or citizenship to wealthy individuals from third countries who invest money in a country. The amount varies from country to country. For example, Latvia's golden visa is one of the most accessible, offering a golden visa in exchange for €50,000 of investment.
The difference between a golden passport and a golden visa is that passport programs offer immediate citizenship. In the EU, countries mainly offer golden visas that provide residency with a possible path to citizenship in a few years.
Malta is often cited as one of the best programs. For example, the 2025 Global Citizenship Program Index, run by Henley and Partners, residence and citizenship by investment advisors, placed Malta first for the tenth year.
The highest court in the EU has decreed that Malta violated European law in its golden passport program, known formally as Malta's Exceptional Investor Naturalisation (MEIN). The EU Commission said the country was "commercializing" EU citizenship and acting against the reciprocity of other member states. Cyprus ended its golden visa program in 2021 and Bulgaria in 2022.
Via a statement, the Maltese government said it is reviewing the legal implications, and the country must likely end its golden passport program or, as it says, bring it in line with the principles outlined in the judgment. If not, further legal action or financial penalties are possible.
However, companies such as Global Citizen Solutions, an investment migration consultancy firm, expect Malta to uphold the program's conditions for applications in process. Patricia Casaburi, its CEO, adds that "applicants who submitted their files prior to the ruling did so under a valid legal framework."
Global Citizen Solutions also states that those individuals who were granted citizenship via the MEIN process will remain full citizens of Malta and the EU. "The recent ruling by the ECJ does not apply retroactively and does not invalidate citizenships that have already been granted," says Casaburi.
While the ruling impacts Malta's golden passport, Malta's Permanent Residence Programme (MPRP) is a golden visa program that offers permanent residency rights to applicants. It remains fully operational and unaffected by these rulings, per advice from Global Citizen Solutions. This program operates within a different legal framework that continues to be available.
In Global Citizen Solutions' new report, Global Residency and Citizenship by Investment, highlighting trends in investment migration, Caribbean nations led in the rankings for Citizenship by Investment. In the EU, Greece and Malta led the golden visa residency by investment program.
Detractors have long argued that golden visa and golden passport schemes are complicated for several reasons. Critics say these programs promote inequality and are exclusive, creating a two-tier system where wealthy individuals can "buy" rights and privileges unavailable to ordinary citizens. The program, they add, undermines the principle, particularly in the EU, that everyone should have equal access to citizenship and residency.
In 2022, then-Justice Commissioner Didier Reynders said, "EU values are not for sale."
Money laundering and organized crime are often linked to golden visa and golden passport programs. For this security reason, many countries, such as the U.K. and Ireland, stopped these programs at the outbreak of the Ukraine war so that Russian nationals could not acquire EU citizenship through these programs. In March 2022, Malta said it too had suspended the processing of Russian and Belarusian nationals.
Outside of the EU, these schemes have been associated with tax evasion and providing sanctuaries for unscrupulous individuals. There is also an economic lens that makes these programs complicated; the invested capital is thought, by some, to benefit a small elite rather than the broader population, and a hotter political potato is that these programs can sometimes inflate real estate prices, meaning that local housing becomes less affordable for residents. For this reason, the golden visa program in Spain ended in April 2025.
The European Court of Justice (CJEU) ruled that Malta's program "amounts to the commercialization of EU citizenship," which undermines the principles of solidarity and mutual trust between member states. The court also argued that EU citizenship should not be treated as a commodity and must involve a "genuine link" between the applicant and the granting country.
The Guardian reported in 2021 that ultra-high-net-worth individuals who didn't have links to the country and had only spent a few weeks there were granted citizenship in Malta. It also reported that many new residents' properties were empty, implying that they had become residents to obtain nationality and free movement across Europe.
There are many advocates of visa and passport investment programs. Before the EU court decision, Prime Minister Robert Abela told the Times of Malta that the MEIN program was safe and beneficial to the country—the Maltese government said that the program has generated more than €1.4 billion in revenues for the government since 2015.
Casaburi, CEO of Global Citizen Solutions, says that "these programs remain legitimate and distinct legal pathways that fall squarely within member states' sovereign competencies regarding residency rights."
She added that individuals "met stringent eligibility requirements, including a residency period in Malta, contributed meaningfully to national development, and successfully passed what is widely regarded as one of the most rigorous due diligence processes globally."
Henley and Partners clearly state that the "trajectory of investor migration remains firmly upward and the ECJ ruling will not change that", and it is likely to increase demand, if anything.
Its Group Head of Private Clients, Dominic Volek, adds that demand from high-net-worth individuals is growing rapidly, "driven by persistent geopolitical uncertainty, rising fiscal pressures in key markets, and a sharpened focus on legacy planning and family security." Its most extensive client base is North American families.
Both Henley and Partners and Global Citizen Solutions expect clients to follow a dual strategy to investment through residency and citizenship, where families seek EU residence rights, with citizenship in reputable third countries. Volek says they anticipate "clients combining EU residence rights with non-EU citizenship options to diversify access and mitigate regulatory or reputational risk. Jurisdictions that offer robust due diligence, clear legal frameworks, and mobility-enhancing benefits—such as Austria (merit-based), Greece (residence and merit-based citizenship), the UAE (residence and citizenship by investment), as well as the Caribbean nations and the first climate-supporting citizenship program in Nauru—will continue to attract strong interest."
In a broader context, Henley and Partners say there are 100 countries worldwide with investment migration legislation—over 60 of these have active programs, with around 30 attracting most applicants.
The company fully expects more to begin or expand because it believes it is a win-win situation; host nations have a vital injection of capital and talent, and offer stability and opportunity for applicants. The U.S., Canada, UAE, Hong Kong, Singapore, and New Zealand are all expanding opportunities, and in that sense, Volek believes the EU is "pulling up the drawbridge when they can least afford to do so."
Whether or not the EU is missing a trick to increase its coffers is a moot point now that the ECJ jas ruled that EU passport options are unfavorable.
Golden passport and visa programs remain polarizing, balancing the promise of economic growth for host nations with concerns over fairness and security. What is clear, though, is that these schemes will continue to operate, regardless of the ECJ ruling on the Malta golden passport program, and indeed, many believe they will continue to grow in popularity.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Any breakaway party should be called ‘Farage assistance group'
A breakaway party to the left of Labour should be known as the 'Farage assistance group', former Labour leader Lord Neil Kinnock has said. Lord Kinnock told Sky News's Sunday Morning With Trevor Phillips that any 'splintering' would 'only be of assistance to the enemies of Labour'. Speaking on Friday, Jeremy Corbyn said that 'discussions are ongoing' about the shape of a prospective new political party, after Zarah Sultana said she was quitting Labour to 'co-lead the founding' of a new outfit with the ex-party leader. Ms Sultana, who lost the Labour whip in the Commons last year, said the project would also include other independent MPs and campaigners. Lord Kinnock, who led Labour between 1983 and 1992, told Sky: 'I understand they're having a bit of difficulty over thinking of a name. 'In a comradely way, I'd suggest one. It would be the 'Farage assistance group'.' He said that a 'division' in the 'anti-right-wing vote can only assist the parties of the right, the Conservatives, especially now under Mrs Badenoch and under Farage, the Reform party'. 'So the splintering… offered by a new party of the left… can only be of assistance to the enemies of Labour, of the working-class – the people who have no means of sustaining themselves other than the sale of their labour by hand and by brain – and can only be of benefit to the egos of those who are running such a party,' he said. It comes as Labour are trailing Nigel Farage's Reform UK in the polls. On Friday, the Home Secretary appeared to shrug off Ms Sultana's announcement of a new party, and on Sunday, the Education Secretary said that 'some of those involved' had 'checked out' of the Labour Party some time ago. 'Now it's for them to forge their way forward,' she said. 'But what will determine the next election is whether people really see in their lives, in their families, in their communities, the difference a Labour Government has brought.'
Washington Post
30 minutes ago
- Washington Post
U.S. seeks limited trade deal with E.U. as Trump's deadline approaches
BRUSSELS — With only three days remaining before President Donald Trump's self-imposed July 9 deadline, U.S. and European negotiators continue to haggle over a skeletal trade deal that would defer a resolution of their toughest commercial disputes. The prospective accord, which would spare European goods the 50 percent tariffs that Trump has threatened to impose, is one of a relative handful of deals the administration is set to finalize by Wednesday.
an hour ago
US tariffs on European goods threaten to shake up trade relationship
FRANKFURT, Germany -- FRANKFURT, Germany (AP) — America's largest trade partner, the European Union, is among the entities awaiting word Monday on whether U.S. President Donald Trump will impose punishing tariffs on their goods, a move economists have warned would have repercussions for companies and consumers on both sides of the Atlantic. Trump imposed a 20% import tax on all EU-made products in early April as part of a set of tariffs targeting countries with which the United States has a trade imbalance. Hours after the nation-specific duties took effect, he put them on hold until July 9 at a standard rate of 10% to quiet financial markets and allow time for negotiations. Expressing displeasure the EU's stance in trade talks, however, the president said he would jack up the tariff rate for European exports to 50%. A rate that high could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals much more expensive in the U.S. The EU, whose 27 member nations operate as a single economic bloc, said its leaders hoped to strike a deal with the Trump administration. Without one, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes. Here are important things to know about trade between the United States and the European Union. A lot of money is at stake in the trade talks. The EU's executive commission describes the trade between the U.S. and the EU as "the most important commercial relationship in the world.' The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat. The biggest U.S. export to Europe is crude oil, followed by pharmaceuticals, aircraft, automobiles, and medical and diagnostic equipment. Europe's biggest exports to the U.S. are pharmaceuticals, cars, aircraft, chemicals, medical instruments, and wine and spirits. Trump has complained about the EU's 198 billion-euro ($233 billion) trade surplus in goods, which shows Americans buy more stuff from European businesses than the other way around. However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. The U.S. services surplus took the nation's trade deficit with the EU down to 50 billion euros ($59 billion), which represents less than 3% of overall U.S.-EU trade. Before Trump returned to office, the U.S. and the EU maintained a generally cooperative trade relationship and low tariff levels on both sides. The U.S. rate averaged 1.47% for European goods, while the EU's averaged 1.35% for American products. But the White House has taken a much less friendly posture toward the longstanding U.S. ally since February. Along with the fluctuating tariff rate on European goods Trump has floated, the EU has been subject to his administration's 50% tariff on steel and aluminum and a 25% tax on imported automobiles and parts. Trump administration officials have raised a slew of issues they want to see addressed, including agricultural barriers such as EU health regulations that include bans on chlorine-washed chicken and hormone-treated beef. Trump has also criticized Europe's value-added taxes, which EU countries levy at the point of sale this year at rates of 17% to 27%. But many economists see VAT as trade-neutral since they apply to domestic goods and services as well as imported ones. Because national governments set the taxes through legislation, the EU has said they aren't on the table during trade negotiations. 'On the thorny issues of regulations, consumer standards and taxes, the EU and its member states cannot give much ground,' Holger Schmieding, chief economist at Germany's Berenberg bank, said. 'They cannot change the way they run the EU's vast internal market according to U.S. demands, which are often rooted in a faulty understanding of how the EU works.' Economists and companies say higher tariffs will mean higher prices for U.S. consumers on imported goods. Importers must decide how much of the extra tax costs to absorb through lower profits and how much to pass on to customers. Mercedes-Benz dealers in the US. have said they are holding the line on 2025 model year prices 'until further notice.' The German automaker has a partial tariff shield because it makes 35% of the Mercedes-Benz vehicles sold in the U.S. in Tuscaloosa, Alabama, but the company said it expects prices to undergo 'significant increases' in coming years. Simon Hunt, CEO of Italian wine and spirits producer Campari Group, told investment analysts that prices could increase for some products or stay the same depending what rival companies do. If competitors raise prices, the company might decide to hold its prices on Skyy vodka or Aperol aperitif to gain market share, Hunt said. Trump has argued that making it more difficult for foreign companies to sell in the U.S. is a way to stimulate a revival of American manufacturing. Many companies have dismissed the idea or said it would take years to yield positive economic benefits. However, some corporations have proved willing to shift some production stateside. France-based luxury group LVMH, whose brands include Tiffany & Co., Luis Vuitton, Christian Dior and Moet & Chandon, could move some production to the United States, billionaire CEO Bernaud Arnault said at the company's annual meeting in April. Arnault, who attended Trump's inauguration, has urged Europe to reach a deal based on reciprocal concessions. 'If we end up with high tariffs, ... we will be forced to increase our U.S.-based production to avoid tariffs,' Arnault said. 'And if Europe fails to negotiate intelligently, that will be the consequence for many companies. ... It will be the fault of Brussels, if it comes to that.' Some forecasts indicate the U.S. economy would be more at risk if the negotiations fail. Without a deal, the EU would lose 0.3% of its gross domestic product and U.S. GDP would fall 0.7%, if Trump slaps imported goods from Europe with tariffs of 10% to 25%, according to a research review by Bruegel, a think tank in Brussels. Given the complexity of some of the issues, the two sides may arrive only at a framework deal before Wednesday's deadline. That would likely leave a 10% base tariff, as well as the auto, steel and aluminum tariffs in place until details of a formal trade agreement are ironed out. The most likely outcome of the trade talks is that 'the U.S. will agree to deals in which it takes back its worst threats of 'retaliatory' tariffs well beyond 10%,' Schmieding said. 'However, the road to get there could be rocky.' The U.S. offering exemptions for some goods might smooth the path to a deal. The EU could offer to ease some regulations that the White House views as trade barriers. 'While Trump might be able to sell such an outcome as a 'win' for him, the ultimate victims of his protectionism would, of course, be mostly the U.S. consumers,' Schmieding said.
