Portugal's Golden Visa Unaffected as EU Shuts Down Malta's Citizenship-for-Sale Scheme

The European Court of Justice (ECJ) has ruled Malta’s controversial ‘Golden Passport’ programme illegal, delivering a clear message against citizenship-for-sale initiatives across the European Union.

However, Portugal’s Golden Visa, which is structurally and legally distinct, remains unaffected and continues to thrive under tightened investment and residency requirements.

Malta’s scheme, formally a Citizenship-by-Investment programme, enabled affluent individuals to acquire Maltese and, ultimately, EU citizenship in exchange for a large financial contribution.

According to the ECJ, this arrangement contravened EU law by commodifying citizenship, reducing it to a transaction based purely on predefined payments or investments.

The court noted that Malta’s model failed to require applicants to establish any meaningful connection to the country—there was no mandatory period of residence or cultural integration. In its judgment, the ECJ described the programme as a “commercialisation of the grant of the nationality of a member state”.

Following the ruling, Malta’s government has stated its intention to revise its citizenship regulations in line with the court’s decision.

In contrast, Portugal’s Golden Visa operates on a residency-by-investment basis and incorporates several safeguards that align with EU principles.

Legal analysts confirm the Portuguese framework does not fall within the ECJ’s scrutiny, thanks to its substantive residency and integration criteria.

Henrique Peyssonneau Nunes, Managing Partner at CMS Law in Lisbon, explained:

“It is good the EU is supportive of individual countries' residency rules, but wants to close the door to citizenship schemes that have no links or connection with the country whatsoever.

“Unlike Malta’s scheme, which granted citizenship directly, Portugal’s Golden Visa requires applicants to spend time in the country each year and achieve a basic level of the Portuguese language. Citizenship is only available after five years if all criteria is met. It is completely different in terms of why the ECJ stopped the Maltese scheme.”

Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, added:

“Portugal has evolved its Golden Visa residency-by-investment programme, and this will continue as demand to invest in Portugal’s future remains high.

“It is bringing a lot of new talent and investment to Portugal, especially with the recent introduction of the IFICI tax regime, often referred to as NHR 2.0, which is aimed at bringing professionals, academics, entrepreneurs, and value creators to Portugal.”

Portugal’s Golden Visa underwent major reforms in 2023, eliminating investment paths through real estate and capital transfers. The current focus is on channelling investment into high-potential sectors via regulated alternative investment funds.

Target industries include healthcare, technology, tourism, hospitality, renewable energy, media, and international events—areas seen as critical to Portugal’s long-term economic development.

Paul Sheedy, special advisor at the Portugal Future Fund, an alternative investment fund approved for Portugal’s Golden Visa residency by investment programme, said:

“We have seen a huge surge in interest from individuals and families from the US, Canada, and the UK in particular, all looking to diversify their portfolios by investing in European private equity as well as secure residency and a dual passport after five years.

“This year has seen record demand for Portugal’s Golden Visa amid changes to international investment trends. The broader outlook is clear: Portugal is in a good place and is now becoming a key player in demonstrating how to attract talent and investment, with investor confidence in Portugal at an all-time high.”

An investor attractiveness report by EY (Ernst & Young) found that 77% of global executives anticipate an improvement in Portugal’s investment attractiveness over the next three years, surpassing expectations for the wider Eurozone (67%) and the UK (59%).

With its clear residency requirements, long-term integration path, and focus on meaningful investment in national priorities, Portugal’s Golden Visa stands as a compliant, future-ready model of how residency-by-investment programmes can work within the framework of EU law.

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Click here to find out more about Portugal's Golden Visa residency by investment programme and discover how you can benefit

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About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.