European Court of Justice Ruling on Malta’s Citizenship by Investment Program

Introduction to the Ruling

LONDON — April 29, 2025
Global investment migration firm Henley & Partners has issued a blistering response to today’s European Court of Justice (ECJ) ruling against Malta’s citizenship by investment program, calling the decision “highly politicized,” “legally unsound,” and “a direct attack on national sovereignty.”

In a strongly worded statement, Henley & Partners expressed deep disappointment with the Court’s judgment, which sided with the European Commission’s claim that Malta’s program infringes upon EU law and the integrity of EU citizenship.

“This ruling lacks solid legal foundation and instead reflects a troubling politicization of the EU’s judicial institutions,” the firm said.
“It undermines democratic legitimacy, the rule of law, and Member States’ sovereign rights to confer citizenship.”

Concerns Over the Ruling

Henley & Partners emphasized that the Advocate General of the ECJ, prior to today’s decision, had concluded Malta’s program did not breach EU law — only for the Court to perform a “staggering 180-degree reversal” viewed as politically motivated rather than legally grounded.

Sovereignty Undermined, Smaller States Targeted

Dr. Juerg Steffen, CEO of Henley & Partners, underscored that citizenship matters are the exclusive domain of individual Member States, enshrined in EU treaties.
The Court’s decision, he warned, paves the way for unchecked EU encroachment on national competences — a dangerous precedent for democratic governance within the Union.

“Would the outcome have been the same if the case was against France or Germany?” Henley & Partners asked pointedly, suggesting that Malta’s status as one of the smallest EU Member States made it an easier political target.

Commercialization Narrative Debunked

Henley & Partners also fiercely rejected the portrayal of citizenship by investment as mere “commercialization,” arguing that investment migration is a legitimate, globally recognized tool for attracting much-needed capital and talent.

“Malta’s program applies some of the strictest due diligence standards globally. Far from undermining EU solidarity, these programs bolster national and regional development,” the statement asserted.

The firm noted that other countries — including the U.S., Canada, UAE, and Singapore — aggressively use investment migration to fuel economic growth, while Europe appears to be “moving backwards.”

A Call for Rational Dialogue

Chairman Dr. Christian H. Kälin called for a fact-based discussion on investment migration, warning that today’s ruling could have far-reaching negative consequences for smaller EU Member States’ economic resilience.

“Malta’s program is a responsible nation-building framework, not an opportunistic shortcut. The EU should focus on better regulatory oversight, not eroding national competences.”

Surging Demand for Alternative Solutions

Despite the setback for Malta’s citizenship program, Henley & Partners expects booming demand for its advisory services as wealthy families worldwide seek alternative citizenship and residency options in the face of tighter EU restrictions.

“This ruling only amplifies the need for specialized legal advice and diversification strategies for high-net-worth individuals,” the firm stated.

Henley & Partners concluded by warning that today’s ECJ decision signals not the end of investment migration — but the beginning of a new phase of sophisticated cross-border mobility solutions.

Conclusion

The European Court of Justice’s ruling on Malta’s citizenship by investment program has significant implications for the future of investment migration in the EU. The ruling has been met with criticism from Henley & Partners, who argue that it undermines national sovereignty and is a direct attack on the principle of citizenship.

Frequently Asked Questions

What is the European Court of Justice’s ruling on Malta’s citizenship by investment program?

The European Court of Justice has ruled that Malta’s citizenship by investment program infringes upon EU law and the integrity of EU citizenship.

What is Henley & Partners’ response to the ruling?

Henley & Partners has issued a strongly worded statement expressing deep disappointment with the Court’s judgment, calling it “highly politicized,” “legally unsound,” and “a direct attack on national sovereignty.”

What are the implications of the ruling for investment migration in the EU?

The ruling has significant implications for the future of investment migration in the EU, and may lead to a surge in demand for alternative citizenship and residency options.