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Introduction: A Turning Point for Maltese Citizenship

Malta has officially announced the end of its controversial golden passport scheme, a programme that allowed foreign nationals to acquire citizenship in exchange for substantial investments. This marks a historic shift in national policy, moving from a wealth-driven system to one focused on merit and genuine contributions. The announcement was made by Home Affairs Minister Byron Camilleri on July 16, 2025, following a decisive ruling by the European Court of Justice (ECJ) in April of the same year.

This new policy direction introduces a merit-based citizenship model, aligning with both EU mandates and Malta’s long-term national strategy, Vision 2050.

Background: Why the Change Was Necessary

1. Legal and Political Pressure

Malta’s Individual Investor Programme (IIP) faced increasing scrutiny from the European Union, which criticized the practice of granting citizenship to wealthy individuals with little or no ties to the country. On April 29, 2025, the ECJ declared the scheme illegal, stating that “citizenship of the Union cannot be bought” and that Malta’s practice undermined the principle of sincere cooperation among member states.

2. Reputation and Risk Factors

Apart from legal pressure, the scheme was also controversial for its potential to facilitate tax evasion, money laundering, and other illicit financial activities. EU member states, as well as Maltese opposition parties, raised concerns about national security and reputational damage to both Malta and the EU.

The New Merit-Based Citizenship Programme

1. Purpose and Vision

The new citizenship model shifts focus from financial contributions to exceptional service and merit. The Maltese government intends to attract individuals who make meaningful, long-term contributions to the country’s development in areas such as:

• Scientific innovation
• Cultural achievements
• Entrepreneurial success
• Social impact and philanthropy
• Sports excellence

This move is directly in line with Malta’s Vision 2050, which promotes sustainable growth, ethical governance, and international cooperation.

2. Legal Framework

The government is amending the Citizenship Act to eliminate the commercial aspect of citizenship. The new law will:

• Disallow any form of investment-for-citizenship process
• Ban the use of private agents in citizenship applications
• Mandate all applications be assessed by a dedicated board
• Empower the Minister of Home Affairs to grant citizenship on a case-by-case basis

3. Key Differences from the Previous Scheme

Public and Political Reactions

Government’s Position

Minister Byron Camilleri emphasized that Malta retains its sovereign right to grant citizenship, stating, “We are respecting the ruling of the court while safeguarding national interests. This reform ensures that Malta attracts talent, not just capital.”

Opposition Support

The Nationalist Party (PN) welcomed the move, having long campaigned against the golden passport scheme. They praised the new programme’s focus on integrity and national development.

Former Prime Minister’s Criticism

Joseph Muscat, under whose leadership the original scheme was launched, criticized the ECJ ruling as “politically motivated.” He maintained that the programme had generated significant revenue and was implemented with full transparency.

Impact on Current and Future Applicants

• Pending Applications: All applications under the old IIP scheme are frozen until further notice.
• Existing Citizens: Those who previously acquired Maltese citizenship legally will retain their status.
• New Applicants: Must now demonstrate clear and tangible contributions that align with national interests.

Broader Implications for Malta and the EU

Restoring Trust and Integrity

Malta’s decision is expected to restore trust among EU member states, reaffirm its commitment to EU laws, and enhance its international reputation.

Attracting Global Leaders

The merit-based model is designed to attract visionary entrepreneurs, scientists, and cultural ambassadors, creating long-term socio-economic benefits for Malta.

Setting a European Precedent

This bold move may serve as a model for other nations, particularly those under similar scrutiny for selling citizenship or residency.

Frequently Asked Questions (FAQs)

1. What is the main difference between the old and new citizenship schemes in Malta?

The old scheme offered citizenship based on financial investment, while the new one focuses on merit and contributions in fields like science, culture, and entrepreneurship.

2. Why was the golden passport scheme considered illegal by the EU?

The European Court of Justice ruled that selling citizenship violated EU law by undermining the principles of sincere cooperation and shared citizenship.

3. Will current Maltese passport holders under the old scheme lose their citizenship?

No. Those who acquired citizenship legally before the reform will retain their status.

4. Who is eligible under the new merit-based scheme?

Applicants who make exceptional contributions to Malta’s development—such as innovators, philanthropists, and leaders in arts or science—are eligible.

5. Will there be any financial requirement under the new system?

No fixed investment amount is required, but applicants must demonstrate added value to Malta’s social, economic, or cultural landscape.

6. When will the new programme come into effect?

The legal framework is being revised in Parliament and is expected to come into force in the second half of 2025.

Conclusion: A New Era of Citizenship in Malta

Malta’s transition from a wealth-based to a merit-based citizenship model marks a major milestone in its legal and policy evolution. By aligning with EU laws and focusing on long-term national benefits, the new scheme promotes integrity, innovation, and inclusion. This reform is not just a reaction to external pressure—it is a strategic shift that places Malta at the forefront of responsible and value-driven global citizenship.