An IMGW News Report
Following a ruling by Europe’s top court, Malta is retiring its investor citizenship scheme and replacing it with a restructured citizenship-by-merit system. The reform marks a shift from transactional nationality to a more discretionary model aligned with national interest.
The overhaul of the Citizenship Act, unveiled by Home Affairs Minister Byron Camilleri, comes in response to an April judgment by the European Court of Justice, which found Malta’s “Golden \passport” regime incompatible with EU law. The court ruled that EU citizenship – acquired through Maltese nationality – must not be treated as a commercial product.
“The reforms also tighten due diligence, despite Malta’s existing procedures being widely regarded as rigorous (…) Those granted citizenship under the previous framework will not be affected retrospectively”
Until now, affluent foreigners could obtain citizenship by making financial contributions of up to €750,000, alongside property purchases and charitable donations. This pathway will be abolished. Agents acting as intermediaries will also be removed from the process.
Under the new rules, citizenship will be reserved for those who have rendered “exceptional service” or made “exceptional contributions” to Malta – categories encompassing science, sport, culture, entrepreneurship, and now also philanthropy and technology. Job creation has been explicitly added as a qualifying criterion.
While Malta’s merit-based route has existed since 2017, the government intends to broaden its remit. Notably, there will no longer be a fixed financial threshold. Applicants must instead demonstrate how they advance Malta’s strategic goals. Camilleri offered the example of a foreign surgeon delivering a critical medical service unavailable locally.
Citizenship will remain a ministerial prerogative, but a strengthened evaluation board will now be authorised to interview applicants and issue formal recommendations, drawing on advice from sectoral experts.
The reforms also tighten due diligence, despite Malta’s existing procedures being widely regarded as rigorous. Safeguards on both the granting and revocation of citizenship will be reinforced, with successful applicants’ names remaining public. Those granted citizenship under the previous framework will not be affected retrospectively.
The amendments, drafted with the assistance of Malta-based law firm Ganado Advocates and following consultation with EU institutions, are to be debated in Parliament this week. While aligning with Brussels’ demands, the government has reaffirmed its sovereign authority over citizenship – a balancing act at the intersection of national identity and European integration.
For more information about the EU versus Malta case, we suggest the following IMGW insightful news reports:
- Investment Migration at a Crossroads After Malta’s Defeat in EU Court
- Sovereignty at Stake: Leading immigration and citizenship expert Dr. Niklas Schmidt on the EU’s Challenge to Malta’s Citizenship by Investment Programme
- Updated: EU vs. Malta Citizenship by Investment Programme Hearing Scheduled for 17 June
- From Malta to Nauru: Dr. Christian H. Kälin on Rewriting the Citizenship Playbook
