Malta Revokes Citizenship and Ends Its Investor Passport Scheme

When it comes to global mobility and investor migration, the topic of citizenship by investment programs has long been controversial especially within the European Union. These schemes allow wealthy individuals and their families to obtain citizenship in exchange for significant contributions, subject to eligibility, investment thresholds, and vetting processes.

Malta was one of the last EU member states offering such a "golden passport" scheme, granting citizenship through substantial financial contributions under its “Exceptional Services by Direct Investment” framework. However, recent legal developments and high-profile revocation cases have dramatically reshaped the country’s approach.

In 2025, Malta not only faced a ruling that invalidated its citizenship-by-investment program, but also began removing citizenship from individuals convicted of serious crimes marking one of the strongest enforcement actions in Europe’s investor migration history.

What Happened: Citizenship Revocation and Program Termination

One of the most high-profile revocation cases involved Semen Kuksov, a Russian national convicted of running a multi-million-euro money-laundering network. Malta revoked his citizenship after his conviction, applying provisions from its nationality law that allow deportation of citizenship acquired through investment under criminal circumstances.

This action came amid growing scrutiny of Malta’s investor citizenship model once praised for economic benefit but criticized for weak “genuine link” requirements. In April 2025, the European Court of Justice (ECJ) ruled that Malta’s scheme was incompatible with EU law, saying selling citizenship for investment “amounts to commodifying nationality.” In response, Malta terminated its program and pivoted to a merit-based naturalisation framework focused on “added value” contributions.

Key Highlights of Malta’s Revocation and Legal Shift

1. High-Profile Revocation Case

• Malta revoked the citizenship of Semen Kuksov after his 2024 UK conviction for money laundering. His citizenship, acquired in 2022 under Malta’s CBI scheme, was stripped as allowed under Maltese law for individuals imprisoned for over a year.

2. ECJ Ruling Ending the CBI Scheme

• On 29 April 2025, the European Court of Justice ruled Malta’s citizenship-for-investment approach violated EU principles of genuine national ties and “mutual trust” between Member States. Malta was ordered to end its transactional citizenship pathway.

3. Shift to Merit-Based Citizenship

• Following the ruling and subsequent legislation changes, Malta scrapped its investor citizenship path and emphasized a new “Citizenship by Merit” program focused on demonstrable contributions such as job creation, innovation, and business impact.

4. Legacy Cases and Revocation Conditions

• Maltese law allows citizenship revocation for fraud, misrepresentation, voluntary renunciation, or imprisonment for more than one year within seven years of naturalisation. High-profile revocations are part of Malta’s effort to restore integrity and EU trust to its citizenship framework.

Why This Matters for Citizenship by Investment Programs

1. Indicator of EU Compliance Pressure

The revocation cases and the ECJ ruling show the EU is tightening oversight of investor migration and rejecting citizenship-for-sale models, especially when applicants lack genuine ties to the issuing state.

2. Reputation and Security Concerns

High-profile revocations (like Kuksov’s) spotlight security risks associated with improper vetting, reinforcing investor immigration providers’ need to demonstrate compliance, transparency, and ethical standards.

3. Shift from Transaction to Merit

Malta’s transition toward “citizenship by merit” reflects broader policy trends emphasizing value-creation over capital input, including entrepreneurship, innovation, or job creation a model many investors will need to emulate in future EU citizenship planning.

What Investors Should Watch Out For

• Program Termination: Malta’s investor CBI route has officially ended, removing a historical EU citizenship pathway.
• Ongoing Revocations: Citizenship may be revoked for fraud, criminal conviction, or failure to uphold legal commitments.
• New Merit-Based Framework: Malta now emphasizes economic value, job creation, and long-term contributions over up-front investment.
• EU Legal Standards: Investors should prioritize programs that demonstrate genuine economic and social ties, aligning with EU requirements post-ECJ ruling.

How This Fits Into a Strategic Citizenship Portfolio

For investors considering European citizenship options, Malta’s revocation case and program overhaul serve as a warning and lesson:

• Avoid transactional models that may conflict with future legal or ethical standards.
• Focus on real economic contribution or residency strategies, especially those aligning with EU “genuine link” expectations.
• Diversify strategy to include merit-based, residency-to-citizenship combinations or alternative jurisdictions.
• Understand that citizenship retention requires ongoing legal compliance, ethical conduct, and responsible investment or contribution.

Malta’s shift from “buy to qualify” to “merit to qualify” reflects a broader EU migration trend toward substantive participation, not simple transactions.

Summary

Malta’s investor citizenship program has drawn global attention, not just for its economic benefits, but also for its dramatic overhaul. Revocations of citizenship, such as in the Semen Kuksov case, highlight the legal and ethical risk of transactional citizenship models. Malta’s transition to a merit-based framework following the 2025 ECJ ruling underscores a growing EU trend prioritizing genuine ties, economic value, and social impact rather than capital alone.

Investors exploring citizenship options should now consider merit and compliance as core pillars of future strategy, especially within Europe.