Rush For Malta's Golden Passport

Malta was the last EU country to offer citizenship in return for investment. While EU nations like Portugal, Greece, and Italy provide residency rather than direct citizenship based on investment, Tuesday’s ruling will also lead to increased scrutiny of these programs. 

Lawyers and advisers are concerned that if individuals delay applying for golden visas, additional restrictions and costs might be introduced.

“The message is clear: those who act sooner will be in a better position,” stated Bettino Zanini, an immigration lawyer at Lisbon-based FiO Legal.

The EU Court of Justice decision also clarified that a member state cannot issue a passport unless the applicant has a “genuine link” to the country. For instance, Portugal requires golden visa holders to spend 14 days in the country every two years to maintain residency, and allows investors to apply for a passport after five years. 

“I don’t believe Portugal’s golden visa program is at risk,” said Pedro Lino, CEO of Optimize Investment Partners, a Lisbon-based firm that enables foreigners to qualify for golden visas by providing investment opportunities starting at €500,000. “However, we’re advising our clients to act quickly as there might be changes to the current rules.”

The European Commission, the EU’s executive branch, has long warned that golden visa programs pose money laundering and security risks to the bloc. The Ukraine war has also raised concerns that sanctioned individuals may have used these programs to gain EU citizenship or special access to the bloc.

The UK, Ireland, the Netherlands, Greece, and Spain have all either ended or tightened their golden visa or similar programs. In 2023, Portugal altered its program—one of Europe’s most popular—by removing real estate investment as a basis for applications.

In response to a significant increase in immigration in recent years, Portugal’s ruling AD coalition has proposed strengthening citizenship requirements if it wins a snap election on May 18. The coalition aims to extend the waiting period for foreign residents before they can apply for citizenship from five to up to 10 years. 

In a statement on its website, Tejo Ventures, a Portuguese investment fund for golden visas, called the EU decision “a clear warning to similar schemes across Europe.” While residency-by-investment programs are unlikely to disappear soon, “increased scrutiny from Brussels is inevitable,” it stated.