Malta’s Merit-Based Citizenship Evolution: From Golden Passports to Genuine Contribution

Malta’s Merit-Based Citizenship Evolution: From Golden Passports to Genuine Contribution

2025-12-02

The CJEU Ruling That Changed Everything

On April 29, 2025, the Court of Justice of the European Union (CJEU) delivered a decisive blow to citizenship-for-investment schemes across Europe. In Commission v Malta (Case C-181/23), the Grand Chamber unanimously ruled that Malta’s Citizenship by Investment program violated fundamental EU law principles, declaring that such schemes “amount to the commercialisation of the granting of the status of national of a Member State and, by extension, Union citizenship.”

The Court found that Malta’s program breached Article 20 TFEU (Union citizenship) and Article 4(3) TEU (principle of sincere cooperation) by allowing individuals to acquire EU citizenship through predetermined financial contributions without establishing genuine connections to Malta. The judgment established a clear precedent: “acquiring citizenship is not a business transaction” and EU member states cannot commodify European citizenship.

This ruling effectively ended the last formal investment-based citizenship scheme within the European Union, following similar suspensions in Cyprus (2020) and Bulgaria (2022).

 

Malta’s Strategic Response: Reinforcing Merit-Based Naturalization

Rather than simply terminating its citizenship program, Malta responded strategically by strengthening its existing framework for merit-based naturalization. While the initial response involved closing the investment route immediately, Malta’s comprehensive legislative reform came through a bill tabled on June 30, 2025, with implementing regulations published later in 2025.

The reformed system builds upon Malta’s existing legal provisions for citizenship by exceptional services, which have been available since 2017 under Article 10(9) of the Maltese Citizenship Act. The 2025 amendments removed all transactional elements while reinforcing the merit-based pathway for genuinely exceptional individuals.

 

Legal Foundation and Framework

The current system operates under:

Primary Legislation: Article 10(9) of the Maltese Citizenship Act (Cap. 188), as amended by Act XXI of 2025

Implementing Regulations: Legal Notice 159 of 2025, amending the Granting of Citizenship for Exceptional Services Regulations

Key Principles:

  • Non-transactional approach: Complete elimination of investment-based routes
  • Merit-driven assessment: Recognition based solely on exceptional contributions
  • Discretionary evaluation: Ministerial decisions based on independent expert recommendations
  • EU law compliance: Framework directly addresses CJEU concerns about commercialized citizenship

Merit-Based Qualification Categories

The reformed program recognizes exceptional contributions across four primary domains:

Science and Research

Individuals who have made significant contributions to human knowledge or technological advancement, including:

  • Peer-reviewed publications in high-impact journals
  • Breakthrough research with practical applications
  • Recognition through prestigious awards or fellowships
  • Leadership of major research initiatives addressing global challenges

Entrepreneurship and Technology

Exceptional business leaders and innovators who demonstrate:

  • Breakthrough inventions with patent protection
  • Successful scaling of innovative enterprises
  • Development of transformative technologies
  • Creation of significant employment opportunities
  • Measurable economic impact in target sectors

Culture, Arts, and Sports

Distinguished individuals who enhance Malta’s international reputation through:

  • International recognition via awards or exhibitions
  • Significant contributions to cultural preservation or innovation
  • Outstanding athletic achievements representing excellence
  • Creative works promoting cultural understanding

Philanthropy and Social Leadership

Leaders whose efforts create measurable positive impact:

  • Establishment or leadership of significant charitable organizations
  • Innovative approaches to addressing social challenges
  • Substantial contributions to education or healthcare
  • Leadership in humanitarian crisis response

 

Conclusion: A New Paradigm for Citizenship Policy

Malta’s evolution from investment-based to merit-based citizenship represents more than regulatory compliance – it signals a fundamental shift toward recognizing citizenship as a reflection of genuine connection and contribution rather than financial capacity.

The enhanced permanent residence programme demonstrates Malta’s continued commitment to attracting international residents and investors through legitimate, transparent pathways that comply with EU standards while serving national development objectives.

This transformation may well establish new international benchmarks for citizenship policy, showing how nations can simultaneously attract valuable human capital, maintain citizenship integrity, and comply with evolving legal standards in an interconnected world. Malta’s experience offers a compelling model for other jurisdictions seeking to balance global talent attraction with the fundamental values that underpin democratic citizenship in the 21st century.

The success of this transformation will ultimately be measured not in the number of citizenships granted, but in the quality of contributions made by new citizens to Malta’s social, cultural, and economic development – establishing citizenship as a partnership built on mutual benefit and genuine connection rather than mere transaction.