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Published:
16.7.2025
Last Updated:
16.7.2025

Malta Publishes Draft Law Replacing Investor Citizenship Rules

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Summary

New ‘Citizenship by Merit’ framework proposed in Bill 140 following CJEU judgment

On 16 July 2025, the Government of Malta has published Bill No. 140 of 2025, formally repealing the investment-based naturalisation route and replacing it with a new legal basis for citizenship by merit. The revised framework introduces a discretionary path for granting citizenship to individuals who have provided exceptional services in the national interest, in areas such as health, security, science, culture, and innovation.

The legislative shift is Malta’s official response to the CJEU’s April 2025 judgment, which found that citizenship granted in exchange for a pre-set financial investment lacked the “genuine link” required under Union law.

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what's inside

New ‘Citizenship by Merit’ framework proposed in Bill 140 following CJEU judgment

On 16 July 2025, the Government of Malta has published Bill No. 140 of 2025, formally repealing the investment-based naturalisation route and replacing it with a new legal basis for citizenship by merit. The revised framework introduces a discretionary path for granting citizenship to individuals who have provided exceptional services in the national interest, in areas such as health, security, science, culture, and innovation.

The legislative shift is Malta’s official response to the CJEU’s April 2025 judgment, which found that citizenship granted in exchange for a pre-set financial investment lacked the “genuine link” required under Union law.

Article

A Shift from Citizenship by Investment to Citizenship by Individual Merit and Public Interest

Under the proposed Article 10(9), the President of Malta, acting on the Minister’s recommendation, may grant citizenship to individuals who have:

  • Rendered exceptional services to Malta in the public interest;
  • Made significant contributions to strategic sectors such as science, education, culture, health, or national security;
  • Maintained a demonstrable link and level of integration with Maltese society.

As confirmed in the official government policy document accompanying the press release:

“Citizenship will be granted to individuals who deserve it, rather than those who simply apply for it. This law aims to ensure the acquisition of citizenship is an honour grounded in merit and in the service of the common good.”

The document further states that the model:

“Moves away from a transactional approach to a qualitative, individual-based consideration of merit, in full respect of EU law and principles of genuine connection.”

🔗 Read the full Bill:www.parlament.mt/media/134923/bill-140-maltese-citizenship-amendment-bill.pdf

Legal Alignment with CJEU Jurisprudence

As outlined in our previous commentary on EC v Malta, the Court of Justice of the European Union ruled in April 2025 that Malta’s earlier model for granting citizenship against a defined financial contribution failed to ensure the presence of a genuine and effective link with the Member State. The new Bill is Malta’s formal legislative response to this judgment.

By embedding merit-based criteria, the proposed law introduces an individualised, discretionary process for naturalisation, in which applicants must demonstrate substantive engagement or achievement of relevance to Malta’s national interest. The proposed amendments also uphold the need for due diligence, personal presence, and national integration measures, signalling alignment with EU legal principles.

The reform aligns Malta’s legal position with the CJEU’s ruling in EC v Malta, where the Court emphasised that nationality decisions must not undermine the substance of EU citizenship. The new merit-based model removes financial thresholds and substitutes them with a discretionary assessment based on individual merit, integration, and public interest.

As noted in our earlier legal insight, while the CJEU affirmed Member State sovereignty in nationality matters, it also required Member States to exercise that competence in good faith and in line with Article 20 TFEU and the principle of sincere cooperation under Article 4(3) TEU.

Broadened Merit Criteria

The new merit-based naturalisation regime under the proposed Article 10(9) may apply to individuals who:

  • Have rendered distinguished services to Malta in areas such as health, science, education, national security, or cultural affairs;
  • Have long-standing affiliations with Malta, reinforced by residence, engagement, or professional contribution;
  • Meet the due diligence and integrity standards required for acquisition of citizenship.

These provisions replace the previously codified structure for granting citizenship through investment via a regulated agent-based procedure.

Legislative Process and Next Steps

The Bill is now formally published and proceeds to the Second Reading and Committee Stage. The new framework opens up a principled and structured path to Maltese citizenship for individuals and families who have demonstrated exceptional merit and commitment to the Maltese national interest. It presents a unique opportunity for globally active families—particularly those contributing to the fields of science, education, innovation, culture, or national service—who wish to establish genuine links with Malta and pursue naturalisation under a transparent and EU-compliant legal framework.

At Chetcuti Cauchi Advocates, we continue to analyse the implications of this legislative transition and advise our clients on strategic pathways to naturalisation under the revised framework.

Our Global Citizenship Practice

Chetcuti Cauchi's acclaimed Immigration and Global Citizenship law practice offers seamless and holistic legal and tax advisory services in relationship to the acquisition of Maltese Citizenship:

  • advising you on your eligibility before filing a citizenship application;
  • providing you with pre-immigration legal and tax advice;
  • guiding you with the preparation and forwarding of the necessary documentation;
  • vetting and preparing all supporting documentation for submission;
  • assisting with the structuring and holding of investments and advice on genuine links with Malta.
  • assisting you with the purchase / rental of property in Malta including applications for AIP permits (foreigners need AIP permit to purchase property in Malta), reviews of your contract, liaising with the notary.

Copyright © 2025 Chetcuti Cauchi. This document is for informational purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking any action based on the contents of this document. Chetcuti Cauchi disclaims any liability for actions taken based on the information provided. Reproduction of reasonable portions of the content is permitted for non-commercial purposes, provided proper attribution is given and the content is not altered or presented in a false light.

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