Malta Individual Investor Program has failed: These 5 alternatives to EU citizenship will remain in 2025

Malta Citizenship Investment Program: Why Its End Was Inevitable

The Malta IIP was controversial from the very start. As early as 2014, the European Commission strongly criticized the program. The reason: Malta was selling EU passports without any genuine connection to the country.

Here are the facts:

• Minimum investment: €1.15 million
• Residence requirement: Just 12 months
• Processing time: 12–14 months
• Success rate: Around 95% with a correct application

The Political Background to Its Failure

In 2020, the European Commission initiated infringement proceedings against Malta. The European Parliament had already called for a total ban on all golden passports in the EU in 2019.

Why was that?

The EU argued that anyone who bought a Maltese passport was automatically granted EU citizenship, undermining the Union’s shared values.

There were also security concerns. Investigative reports showed that questionable individuals had slipped through the programs.

What Happens to Existing Applications?

Good news: Applications submitted before the program was stopped will continue to be processed. Malta has granted a transitional period until the end of 2025.

This means for you:

• Existing applications remain valid
• Fees already paid will not be refunded
• The processing continues as normal
• No new applications have been possible since October 2020

Refunds and Legal Consequences

This is where things get tricky. Malta will not refund any fees for the halted program. In other words: if you have already paid, you’ll need to look to other programs.

Various law firms have filed class-action lawsuits. Chances of success are slim, however, since Malta ended the program legally.

My advice: focus on the alternatives still available. That’s where your energy is better spent.

EU Citizenship by Investment 2025: These 5 Alternatives Still Work

Despite EU criticism, there are still a number of pathways to European citizenship. However, most programs have become significantly stricter in 2025.

Here are my top 5 Malta alternatives:

Cyprus Golden Visa: The Direct Malta Replacement

Cyprus stopped its citizenship-by-investment program in 2020. However, the residency program is still available and leads to citizenship after 7 years.

Key details:

Why does this still work? Cyprus no longer offers direct citizenship, but you can take the regular route via residency.

The advantage: You are still an EU citizen and can live and work anywhere in the EU.

Portugal D7 Visa: The Insider Tip for Entrepreneurs

Portugal stopped its Golden Visa for real estate investments in Lisbon and Porto in 2022. However, the D7 visa for passive income remains available.

The D7 is perfect if you:

• Have regular passive investment income
• Run an online business
• Earn rental income from property
• Receive dividends from stock portfolios

Requirements:

• Proof of €760 monthly passive income
• Clean criminal record
• Proof of accommodation in Portugal
• Health insurance coverage

After 5 years, you can apply for Portuguese citizenship. Translation: EU citizenship for under €50,000 in total expenses.

Spain Golden Visa: Real Estate as Your Door Opener

Spain tightened its program, but didn’t stop it. The minimum investment remains €500,000 in real estate.

Be warned: The Spanish government is discussing raising the threshold to €1 million. My advice: If Spain interests you, act in 2025.

What you get:

• 2-year residence permit (renewable)
• No minimum stay requirement
• Family included
• Work permit after 1 year
• Citizenship after 10 years

The catch: 10 years is a long time. However, you can rent out the property and earn returns.

Austria Red-White-Red Card: Qualification, Not Just Capital

Austria doesn’t have a classic investment program. But the Red-White-Red Card Plus is interesting for skilled entrepreneurs.

You need:

• Recognized qualifications or professional experience
• Proof of €4,300 monthly income
• German language skills (level A1, later B2)
• Clean criminal record

Why is this relevant? After 6 years, you can apply for Austrian citizenship. Austria is also highly attractive for holding company structures from a tax perspective.

Italy Investor Visa: Startup Nation with EU Access

Italy offers various investment visas. The most interesting: The Investor Visa for innovative startups.

The options:

After 10 years, you can apply for Italian citizenship. You’ll need Italian at B2 level for that.

Cost Comparison: What Does EU Citizenship by Investment Really Cost?

Time for real numbers. The advertised minimum investments are only the tip of the iceberg.

Here’s the reality:

Hidden Costs Nobody Mentions

Each program brings extra costs:

• Legal fees: €15,000–€50,000 depending on complexity
• Due diligence fees: €5,000–€15,000 per person
• Translations and notarizations: €2,000–€5,000
• Travel expenses: €3,000–€10,000 over the years
• Language courses: €1,000–€5,000 (for some countries)
• Renewal fees: €1,000–€3,000 every few years

ROI Calculation for Investor Visa Programs

Let’s do the math. An EU passport is not just a cost factor, but an investment.

The monetary advantages:

• Visa-free travel: Save €500–€2,000 per year in visa costs
• Tax optimization: Depending on structure, €10,000–€100,000 per year
• Access to education: EU tuition fees instead of international fees (savings: €20,000–€40,000 per child)
• Business opportunities: Access to the EU single market – priceless
• Security: Plan B in times of political change – priceless

My rule of thumb: For annual income of €100,000 or more, every EU program pays off in 5–10 years.

Tax Implications Across the Options

This is where things get interesting for us as tax advisors. Not all EU citizenships are equally tax-advantageous.

The key tax highlights:

• Cyprus: 12.5% corporate tax, no withholding tax on dividends to non-residents
• Portugal: NHR program for 10 years (0–20% tax on foreign income)
• Spain: Beckham rule for high earners (24% flat tax on the first €600,000)
• Austria: Attractive for holding structures, EU withholding tax treaties
• Italy: Flat tax for new residents (€100,000 annually on worldwide income)

Important: Tax residency is determined by where you live, not your citizenship. Plan your time in each country strategically.

Citizenship by Investment Alternatives: Step-by-Step Guide

Let’s get practical. Here’s my proven 6-step method for a successful application:

Due Diligence: Which Program Fits You?

Step 1: Analyze Your Situation

Answer these questions honestly:

• How much can you invest? (Be realistic)
• How often can you travel to the destination country?
• Do you speak the local language or are you willing to learn?
• Do you need quick access or is time not a factor?
• What are your tax goals?

My Recommendation Matrix:

• Budget under €100,000: Portugal D7 Visa
• Budget €300,000–€500,000: Cyprus Golden Visa
• Budget over €500,000: Spain or Italy
• Tax optimization is a priority: Cyprus or Portugal
• Fast access desired: Cyprus or Spain
• Family with children: Portugal or Austria (education system)

Step 2: Review the Legal Framework

Check your current citizenship:

• Does your home country allow dual citizenship?
• Are there tax consequences if you give up your current citizenship?
• Are there obligations like military service?

Application: Avoiding Typical Pitfalls

Step 3: Prepare Your Documents

This is often the most stressful part. Here’s my checklist for every application:

• Personal documents: Birth certificate, marriage certificate, divorce decree (if applicable)
• Police clearances: From all countries where you’ve lived for more than 6 months
• Financial proof: Bank statements, tax returns for the past 3 years
• Investment evidence: Varies by program
• Health insurance: International coverage required
• Language certificates: If required

Important: All documents must be apostilled and translated into English or the national language.

Step 4: Structure Your Investment

This is where most mistakes happen. Each program has strict requirements:

• Real estate: It must be the minimum amount, not the purchase price minus mortgage
• Government bonds: Must be held for the full program period
• Business investment: Proof of job creation may be needed
• Bank deposits: Specific accounts at approved banks

Timeline: Realistic Expectations for 2025

Step 5: Timing

Here are realistic timelines based on my experience:

Step 6: Submit and Track Your Application

Once submitted, the waiting begins. But you can still be proactive:

• Request regular updates from your lawyer
• Respond promptly to queries
• Fulfill any residency requirements right away
• Start language courses (if needed later)
• Plan your tax status for your new situation

Plan B for Rejected Malta Investors: Immediately Actionable Strategies

Your Malta application was rejected, or you invested in the halted program? Here’s my strategy for a fresh start:

Document Recycling: What You Can Reuse

Good news: many documents can be reused for other programs. That saves time and money.

Reusable documents:

• Police clearances: Valid for 6 months, accepted by all programs
• Apostilled birth certificates: Unlimited validity
• Translations: As long as the original remains unchanged
• Financial proof: Up-to-date bank statements for all programs
• Medical certificates: Valid for 6–12 months, depending on age

Newly required documents:

• Country-specific application forms
• Proof of investment for the new program
• Language certificates (if required)
• Extra due diligence as per new requirements

My tip: keep all your documents organized. A structured archive can save you weeks down the line.

Changing Lawyers: When Does It Make Sense?

Not every lawyer is the best fit for every program. Here’s my criteria for making a change:

Switch if:

• Your lawyer has no experience with the new destination
• Communication was poor
• There were hidden costs
• You lost confidence

Stay if:

• Your lawyer is also qualified in the new country
• You have a strong working relationship
• The fee structure is transparent
• They have references for the new program

Important: Changing lawyers takes time. New lawyers need to get up to speed on your case.

Develop Parallel Backup Strategies

My most important advice: never rely on just one path. Always develop at least two options in parallel.

The Two-Track Strategy:

• Main route: The program that best fits your needs
• Backup route: A faster or cheaper program as a fallback

Example: You’re aiming for Spain (main route), but preparing Portugal at the same time (backup). If Spain tightens its requirements, you immediately have an alternative.

Portfolio Approach for Advanced Investors:

If you have greater resources, you can even pursue three programs at once:

• Fast solution: Cyprus Golden Visa (3 months)
• Affordable solution: Portugal D7 (6 months)
• Premium solution: Austria or Italy (12 months)

It costs more, but gives you maximum security and flexibility.

Geographical Diversification:

Consider non-EU programs too:

• Switzerland: Investor visa via cantonal programs
• UK: Innovator visa (post-Brexit restart)
• Canada: Provincial Nominee Program
• Singapore: Global Investor Programme
• USA: EB-5 program (despite long waiting times)

My philosophy: an EU passport plus a strategic second passport outside the EU gives you maximum flexibility.

Ready for your new beginning? The Malta era is over, but your opportunities are better than ever.

If you have questions about your specific situation, feel free to get in touch. As your tax mentor, I’ll be happy to guide you through the process.

Yours, RMS

Frequently Asked Questions