The European Court of Justice has just declared Malta’s controversial “golden passport” program illegal, a decision that could have serious implications for similar programs across the EU including Portugal’s Golden Visa.
The Decision Against Malta
On Tuesday, April 29, the EU’s highest court concluded that Malta’s investor citizenship scheme violated European law. The judges ruled that the program represented a “commercialization of the grant of nationality of a member state” and, by extension, EU citizenship.
Malta’s program allowed individuals who invested up to €750,000 and supposedly spent 12 months in the country to obtain citizenship. With a Maltese passport, investors gained EU citizenship and the freedom to live and work anywhere in the Union.
This is not just a local issue. The court clearly stated that Malta had jeopardized the mutual trust between EU member states necessary to create an area without internal borders. If Malta’s Golden Visa can be ruled illegal and the program required spending 12 months in the country, we wonder what the European Court of Justice might say about Portugal’s Golden Visa only requiring 14 days per year in the country.
Spain Has Already Abolished Its Program
This decision comes just months after Spain announced the end of its own Golden Visa program. In February 2025, the Spanish government canceled the program that allowed foreigners to obtain residency through real estate investments of €500,000, justifying the decision with concerns about real estate speculation and housing affordability. The final deadline to apply for the Spanish Golden Visa through buying a property worth 500,000 euros or more was April 3, 2025.
Spain’s abolishment of its Golden Visa, although imposed before this court ruling, was aligned with growing EU pressure against these programs, which are seen as gateways for potential security risks, money laundering, and tax evasion.
The Future of Portugal’s Golden Visa
Portugal, which has operated its own Golden Visa program since 2012, now finds itself in a delicate position. Although the Portuguese program has undergone changes in recent years, including the elimination of real estate investments in high-pressure areas like Lisbon and Porto, the European court’s decision raises serious questions about its long-term viability.
It’s important to note some fundamental differences: while the Maltese scheme offered direct citizenship, the Portuguese program only grants residency, with the possibility of citizenship after five years. However, the underlying logic of the court’s decision—the “commercialization” of access to the EU—could be applied in a similar way.
Since its creation, the Portuguese program has attracted more than €6 billion in investments and issued thousands of residence permits, mainly to Chinese, Brazilian, and American citizens. Advocates argue that the program brought crucial investment to the Portuguese economy, especially during the financial crisis.
Growing Pressures
Criticism of golden visa programs has increased in recent years. International organizations, including Transparency International, have repeatedly warned about the risks associated with these schemes including, but not limited to, the facilitation of money laundering, increased speculation in real estate, inequality in access to European residency and citizenship, and security risks and insufficient background checks.
The European Commission has demonstrated a clear position against these programs, as evidenced by the statement after the decision on Malta: “European citizenship is not for sale.”
What to Expect?
Although there is no direct action against Portugal at this time, political and legal pressure is likely to increase. The Portuguese government will have to carefully assess whether the program, even in its current more restricted form, can survive EU legal scrutiny.
Some experts already suggest that Portugal should consider a profound reform or even the gradual elimination of the program before being forced to do so by external pressure.
For current Portuguese Golden Visa holders, the situation creates uncertainties, although it is unlikely to retroactively affect already acquired rights.
At a time when the housing crisis in Portugal continues to be a hot topic, and with growing pressure from the EU, the question is no longer whether the Portuguese Golden Visa will be affected, but when and how the Portuguese authorities will respond to this new European legal context.
As the dust settles on the Malta decision, one thing seems clear: the era of “golden visas” in Europe may be coming to an end, and Portugal will have to adapt to this new reality. As we outlined previously, changes to the Portuguese Golden Visa program may already be coming due to the upcoming Portuguese elections. The message is becoming abundantly clear: if you would like to obtain residency in Portugal through the current Golden Visa program, you should apply as soon as possible. Residency already granted under the current Portugal Golden Visa scheme will likely not be canceled retroactively should the scheme be declared illegal by the European Court of Justice.
