What ECJ Malta Ruling Means for the Caribbean CBI and Investment Migration

Vago Barseghyan
April 30, 2025

This article analyses the recent European Court of Justice ruling that declared Malta's Citizenship by Investment programme unlawful under EU law. It explores the implications for other investment migration schemes—particularly Caribbean Citizenship by Investment programmes. The piece also provides a broader perspective on the ethical and legal foundations of investment migration, exposing double standards in traditional naturalisation paths and making the case for well-regulated Investment Migration programmes as a tool for global mobility and economic development.

Table of contents

On 29th April 2025, the European Court of Justice (ECJ) declared Malta’s Citizenship by Investment (CBI) programme incompatible with EU law, effectively ending its golden passport scheme. While this ruling is a blow to EU-based citizenship-for-sale models, it may open new doors for Caribbean countries that run well-regulated, non-EU CBI programmes. The decision reignites the global debate on what citizenship means in a world shaped by inequality, mobility restrictions, and legal sovereignty.

The EU Court's Judgment on Malta Citizenship by Investment

Since its launch in 2014, Malta’s CBI programme offered EU citizenship to wealthy investors for contributions starting at €600,000. Though the programme generated over €1.8 billion in revenue, it faced consistent criticism for enabling wealthy foreigners to gain EU rights without meaningful residency or national connection. The ECJ’s decision found that:

  • Granting nationality based on pre-determined investments renders citizenship a mere commercial transaction.
  • Such schemes violate the principle of sincere cooperation and EU citizenship law, undermining mutual trust between member states.
  • Even with Malta’s enhanced due diligence process since 2020, the programme still lacked a true residency or integration requirement.

The court emphasised that citizenship should reflect a “special relationship of solidarity and good faith,” not financial capability.

Malta’s CBI - Security and Legal Risks Behind the Ruling

According to reputable media reports, investigations linked Malta’s CBI programme to money laundering, tax evasion, and sanctions evasion. Some applicants spent only days in Malta before receiving citizenship. At least 16 recipients were later sanctioned or convicted, including Pavel Melnikov, a Russian national with a Maltese passport, convicted of financial crimes in Finland.

The European Commission, which brought the case in 2023, welcomed the ruling, stating that "European passports are not for sale", as the acquisition of EU citizenship cannot result from a commercial transaction. Similar CBI schemes in Cyprus and Bulgaria were previously terminated under EU pressure. 

Implications for Caribbean Citizenship by Investment programmes

The ECJ’s hard stance has significant effects beyond Europe, particularly in the Caribbean. However, these impacts are not necessarily negative:

  • Caribbean CBI programmes operate outside EU jurisdiction.
  • The ruling may drive interest away from EU programmes, toward non-EU jurisdictions that are stable, legal, and well-regulated.

To remain credible, Caribbean CBI programmes must continue to invest in robust due diligence, transparent frameworks, and international cooperation to avoid becoming the next focus of geopolitical scrutiny.

Our Take

Citizenship by Investment Is Legal and Rational

Under international law—including Article 1 of the 1930 Hague Convention—states have full sovereignty in determining who qualifies as a citizen. Within this legal framework, Citizenship by Investment is a legitimate pathway for individuals to obtain a second citizenship, especially those from politically unstable or passport-restricted nations.

CBI allows individuals to obtain citizenship in exchange for substantial, lawfully obtained economic contributions. Investment migration curtails the global inequality faced by citizens of many countries, arising from political structures and not their personal undertakings. For many, CBI programmes offer a legal, structured route to escape the global inequality embedded in citizenship allocation by birth or descent rather than contribution, merit or choice.

Investment Migration Reveals Double Standards

Critics often argue that CBI undermines the sanctity of citizenship. However, many existing paths to naturalisation are no less arbitrary or ethically superior. Consider the following:

  • A person can claim Italian or Greek citizenship through ancestry without ever setting foot in Italy or Greece.
  • A Portuguese national can naturalise in Austria while retaining dual citizenship—unlike a Serbian applicant.
  • Catholic bishops retiring from the Vatican can become Italian citizens automatically, with no integration requirements.
  • Any person with one Jewish grandparent can obtain Israeli citizenship without ever having lived in or visited Israel, regardless of cultural or linguistic ties. 
  • Anyone with one Irish-born grandparent can obtain Irish citizenship—even if their parents or they themselves never lived in Ireland.
  • A spouse of a Spanish citizen may naturalise in Spain under marital recognition rules without residence or language proficiency.
  • A person whose ancestor was a Polish citizen (going back several generations) may reclaim Polish citizenship without any requirement to live in Poland, speak Polish, or even visit the country.

In these cases, the bloodline connection often replaces objective assessments of integration or contribution. By comparison, CBI applicants contribute hundreds of thousands of dollars, undergo extensive vetting through the due diligence process, and often have a greater economic impact than those taking more conventional (yet less scrutinised) routes.

Benefits and Governance: The Caribbean Opportunity

When conducted transparently, investment migration offers undeniable benefits, especially for small island economies such as those in the Caribbean:

  • Generates foreign direct investment
  • Funds infrastructure, public services, and resilience efforts
  • Supports economic diversification

However, like any system, CBI is susceptible to abuse when conducted without transparency or strong oversight. In such cases, it can foster corruption and undermine trust in public institutions. But this is not a flaw of investment migration per se—it is a governance issue, applicable to many other public policies and industries. So, like any policy tool, it must be implemented with rigorous oversight to prevent misuse. 

Final Thoughts

Citizenship by investment challenges the romanticised view of nationality as a static, inherited identity. It exposes the inconsistencies in current naturalisation systems and offers a legal, economically beneficial path to global mobility. Dismissing CBI as illegitimate ignores both its practical merits and the arbitrariness of alternative citizenship routes. In a world shaped by inequality, giving individuals the right to access better life opportunities through transparent, legal means may be more ethical than clinging to outdated notions of national identity.

The ECJ ruling marks a pivotal moment in the debate over citizenship as a right, a privilege, and a commodity. While the EU draws strict lines around its values, the Caribbean and other non-EU countries can choose to respond not by retreating, but by raising the bar.

Citizenship by investment, when regulated with integrity, not only survives this legal challenge—it becomes more essential than ever in a world where opportunity is unequally distributed. It’s time to stop romanticising inherited citizenship and start embracing pragmatic, legal avenues that enable people to shape their own futures.

Vago Barseghyan
Our blog covers a combination of industry trends and professional insights. We provide updates on real estate investment opportunities through citizenship by investment programs, global mobility and more! Sign up for our newsletter to stay on top of industry trends!
Vago Barseghyan
Our blog covers a combination of industry trends and professional insights. We provide updates on real estate investment opportunities through citizenship by investment programs, global mobility and more! Sign up for our newsletter to stay on top of industry trends!
Antigua and Barbuda enjoys a tropical maritime climate, characterised by warm temperatures year-round, with an average of 27°C (81°F). The islands have a relatively dry season from January to April, with a wetter season from May to November. The islands have robust infrastructure and emergency systems in place to manage such events.
Originally inhabited by the Arawak and Carib peoples, the islands were colonised by the British in the 17th century. The cultural landscape is a blend of African, British, and indigenous influences. This rich history is reflected in local music, dance, and festivals, with calypso, reggae, and steelpan music being particularly popular. Cricket, a legacy of British rule, is the most popular sport, and sailing is also popular, reflecting the islands' strong maritime culture.
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Antigua and Barbuda have a stable democratic government based on the British parliamentary system. The country is generally regarded as having a manageable level of bureaucracy, with a reasonably straightforward process for interacting with government agencies. Retirees will find that essential services like renewing a driver’s licence, paying taxes, or obtaining necessary permits are relatively simple, although some processes can be slow due to limited resources. The government has been making strides in digitising services to reduce in-person visits and streamline processes.
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Dominica has a tropical rainforest climate, with high humidity and heavy rainfall, particularly on the windward side of the island. Temperatures are warm year-round, averaging 26°C (79°F), with cooler conditions in themountainous interior. The island’s lush greenery is a result of its abundantrainfall.
Dominica's culture is a vibrant mix of indigenous Kalinago heritage, African traditions, and European colonial influences, particularly French and British. The island was originally settled by the Kalinago people, and their influence is still present today, especially in the Kalinago Territory. African traditions have also left a profound mark, particularly in the island’s music, dance, and festivals. Dominica’s outdoor sports are heavily influenced by its rugged terrain, with hiking and diving being popular among locals and expatriates alike, although there is of course cricket for those with more sedentary dispositions.
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Dominica’s government operates under a parliamentary democracy, with a legal system rooted in English common law. While the country’s bureaucracy is smaller and more accessible, some processes can be slow, particularly in rural areas. However, the government is generally cooperative and accommodating, particularly for expatriates. It’s advisable to have local assistance or a legal advisor to navigate more complex processes, such as property transactions or dealing with land registries.
Dominica hosts several unique cultural events, including the World Creole Music Festival and Carnival. The island’s festivals are deeply connected to its Creole heritage, offering retirees a chance to immerse themselves in local traditions and music. Dominica’s Independence celebrations also feature traditional dances, music, and cuisine.
Grenada has a tropical climate with relatively consistent temperatures throughout the year, averaging around 28°C (82°F). The dry season runs from January to May, while the wet season is from June to December. Although Grenada is located on the southern edge of the hurricane belt and is less impacted the another Caribbean islands, it is not immune to these storms as has been seen recently with Hurricane Beryl. The island has since improved its hurricane preparedness and infrastructure resilience and the value of these improvements has led to greater preparedness for such events.
The island was originally inhabited by the Arawak and Carib peoples before being colonised by Europeans. Grenadian culture is characterised by a strong sense of community, vibrant music, and dance traditions, such as calypso and soca. French influence on the island is evident in its place names and culinary traditions. Cricket and football are the most popular sports, and sailing and water sports are also widely enjoyed.
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Grenada also follows a British-style parliamentary democracy. The country’s bureaucracy is relatively user-friendly, with many government processes being straightforward and accessible. Retirees generally find it easy to interact with government departments for routine tasks such as registering a vehicle, renewing licences, or paying taxes.
Grenada’s Spicemas Carnival is the island’s most significant cultural event, celebrated with colourful parades, music, and dance. The island also hosts the Grenada Sailing Festival and the Pure Grenada Music Festival, both of which attract international visitors. These events provide a lively social calendar for retirees.
Saint Kitts and Nevis has a tropical climate, with temperatures ranging between 24°C (75°F) and 31°C (88°F) throughout the year. The islands have a dry season from December to April and a wet season from May to November. Located within the hurricane belt, Saint Kitts and Nevis is vulnerable to hurricanes, especially between June and November, but the islands have strong building codes and disaster response plans in place to reduce the impact of the senatural events.
The cultural heritage of Saint Kitts and Nevis is shaped by its history of indigenous Carib and Arawak inhabitants and European colonisation. Saint Kitts was the first Caribbean island to be colonised by the British, and Nevis has a rich history as a major sugar producer. The islands' cultural roots are a blend of African, British, and French influences, reflected in the local cuisine, music, and festivals. Cricket and football are deeply ingrained in the local culture and, along with sailing and hiking, are integral to the islands' cultural life.
The twin islands of Saint Kitts and Nevis are known for their volcanic mountains, rainforests, and beaches. The islands are home to the UNESCO World Heritage site of Brimstone Hill Fortress and offer stunning views from places like Mount Liamuiga. The islands’ natural beauty is one of their strongest appeals to retirees.
Saint Kitts and Nevis operates under a stable parliamentary democracy, with governance structures similar to those of other Commonwealth countries. The islands have a relatively low level of bureaucracy, and dealing with the government on a day-to-day basis is generally straightforward. Most routine administrative tasks, such as obtaining permits, paying taxes, or registering property, are manageable, although some processes can take longer than expected due to limited staffing. The government is trying to modernise its operations, including digitising more services, which should help reduce delays and improve overall efficiency.
The islands of Saint Kitts and Nevis host several vibrant festivals, including Carnival, the Saint Kitts Music Festival, and Culturama, which is unique to Nevis. These events celebrate local culture, music, and heritage, offering retirees plenty of opportunities to engage with the community and enjoy local traditions.
Saint Lucia enjoys a tropical climate with warm temperatures year-round, typically ranging from 25°C (77°F) to 30°C (86°F). The dry season extends from December to May, while the wet season is from June to November. Saint Lucia is situated near the edge of the hurricane belt, making it prone to hurricanes and tropical storms but less so than those further north. The government has invested in improving hurricane preparedness and infrastructure resilience to protect the island from future storms better.
Saint Lucia's culture is a unique blend of African, French, and British influences, reflecting its complex history of colonisation. The island was originally inhabited by the Arawak and later the Carib people, before being contested by the French and British for centuries. The French influence is particularly strong in the island's Creole language, cuisine, and Catholic traditions, while British colonial rule has left its mark on the legal system and sports, particularly cricket. The island’s dramatic landscapes, including the iconic Pitons, provide a stunning backdrop for outdoor sports like hiking and diving, which are popular among locals and retirees alike.
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Saint Lucia’s government is a parliamentary democracy, and the country has a reputation for a relatively efficient bureaucracy compared to other Caribbean nations. For retirees, dealing with the government is typically hassle-free for most day-to-day tasks like renewing a driver’s licence, paying taxes, or obtaining residency permits. Saint Lucia has been proactive in improving its e-government services, allowing for easier access to information and quicker processing of certain requests online.
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