Exemplary embodiments of the invention are directed to magnetic elements including a passivation layer for isolation from other on-chip elements. One embodiment is directed to an apparatus comprising a magnetic tunnel junction (MTJ) element. The MTJ element comprises: a first ferromagnetic layer; a second ferromagnetic layer; an insulating layer disposed between the first and second ferromagnetic layers; and an MTJ passivation layer forming protective sidewalls disposed adjacent to the first ferromagnetic layer, the second ferromagnetic layer, and the insulating layer.