On 24 July 2025, the Maltese Citizenship Amendment 2025 (Act XXI of 2025) hereinafter referred to as the Citizenship Amendment Act came into effect. This legislative change marks the demise of Malta’s citizenship by naturalisation for exceptional services by direct investment programme, a programme that, over the years, attracted global investors seeking EU citizenship in exchange for qualifying financial contributions.
The bill was tabled in direct response to the European Court of Justice (ECJ) ruling in European Commission v. Republic of Malta (Case C-181/23), delivered earlier in 2025. The judgment concerned the Granting of Citizenship for Exceptional Services programme, referred to as Malta’s Citizenship by Investment (CBI) programme, which granted eligible foreign nationals citizenship through a residency, investment, and contribution to the Maltese economy. For more on the previous framework, see requirements for Malta citizenship.
The Legal Catalyst Behind the Maltese Citizenship Amendment 2025
ECJ Ruling Leading to the Maltese Citizenship Amendment 2025
The legal foundation behind the Maltese Citizenship Amendment 2025 is rooted in an infringement case brought by the European Commission before the ECJ. The Commission argued that Malta’s former investment-based citizenship model, which enabled naturalisation through predefined financial contributions without demonstrating a genuine and lasting connection to Malta, breached core EU principles of solidarity and sincere cooperation under the Treaty on the Functioning of the European Union (TFEU). This ECJ ruling became the decisive trigger for the Maltese Citizenship Amendment 2025, compelling Malta to reform its citizenship framework and align it with EU expectations regarding genuine links and long-term integration.
Legal Opinions and Implications for the Maltese Citizenship Amendment 2025
Although a legal opinion in favor of the program’s compatibility with EU law had been given by Attorney General Collins, the ECJ ultimately held against Malta. The decision surprised many legal practitioners and academic commentators due to the sudden departure between the Attorney General’s interpretation and the ultimate decision of the Court.
How the ECJ Decision Shaped the Maltese Citizenship Amendment 2025
The ECJ held that Malta’s scheme contravened Article 20 TFEU, which makes EU citizenship complementary to national citizenship but also dependent on essential interests of Member States. For the Court, awarding citizenship without a real connection for example, extended residence, cultural integration, or close family ties had the potential effect of circumventing EU law protection and acquiring access to EU rights for purely instrumental reasons. For an external news summary, see Malta to scrap golden passport scheme.
Removal of Citizenship by Investment Provisions in the Maltese Citizenship Amendment 2025
Legislative Response
The Maltese Citizenship Amendment 2025 is a direct legislative response to the ECJ’s findings. Statutory reference to the Granting of Citizenship for Exceptional Services programme has been entirely removed, including all laws enabling citizenship acquisition by pre-determined contributions, donations, or investments.
This legislative change complements reforms made to other residency pathways such as the Malta Permanent Residence Programme (MPRP). For more information on related legal updates, refer to MPRP changes 2025 and Legal Notice 146 of 2025.
Policy Reorientation in the Maltese Citizenship Amendment 2025
The basis for this legislative reconfiguration is twofold:
- EU Compliance – To bring Maltese citizenship law into conformity with the ECJ decision, ensuring that future naturalisations satisfy the “genuine link” requirement in EU law.
- Policy Reorientation – To shift away from a commercial/transactional focus towards exceptional merit, national interest, and tangible contributions beyond monetary investment.
Defining “Exceptional Services” Under the Maltese Citizenship Amendment 2025
Merit-Based Naturalisation Criteria
The new legal regime shifts towards a merit-based model of naturalisation. The Maltese Citizenship Amendment 2025 introduces a more selective route for applicants:
- Who provide distinguished service to Malta or humankind;
- Who have made exceptional contributions, including job creation or measurable economic and social gains;
- Whose naturalisation serves Malta’s interests in science, culture, humanitarian work, or strategic projects.
This eliminates automatic eligibility based solely on investment and instead focuses on measurable benefits to Malta’s economy, society, or international standing.
Removal of Licensed Agent Requirement
Under the Maltese Citizenship Amendment 2025, the legislation introduces a clear procedural shift by removing the mandatory licensed agent requirement that previously governed citizenship applications. This reform marks a clear departure from the commercialised framework associated with Malta’s former investment-based citizenship model.
Under the previous system, applicants were required to submit citizenship applications exclusively through authorised intermediaries, which increased overall costs and reinforced the perception of citizenship as a transactional process. The Maltese Citizenship Amendment 2025 replaces this structure with a direct, government-controlled application pathway.
Applicants may now submit citizenship requests directly to the competent Maltese authorities, without engaging an intermediary agent. This shift enhances transparency, improves regulatory oversight, and places full responsibility for eligibility and compliance on the applicant rather than third-party representatives.
By removing licensed agents from the application process, the Maltese Citizenship Amendment 2025 strengthens its merit-based philosophy, reduces unnecessary administrative layers, and reinforces Malta’s commitment to aligning citizenship policy with EU governance standards and public accountability.
Compliance with ECJ Ruling While Preserving Sovereignty
Retained Sovereign Rights
Despite complying with the ECJ’s ruling, Malta maintains its sovereign right to:
- Define naturalisation eligibility criteria;
- Set residency and integration requirements;
- Determine what constitutes a “genuine link.”
These powers must, however, align with EU obligations, given that Maltese citizenship grants EU citizenship rights.
Impact on Prospective Applicants
Key Changes
- No direct investment route to citizenship;
- Longer residency requirements before eligibility;
- Merit-based qualifications prioritised;
- Direct applications without agents, placing more responsibility on applicants.
Potential Benefits for Malta
Strategic Advantages
- Strengthened EU relations;
- Improved diplomatic and business reputation by removing the “citizenship for sale” label;
- Sustainable growth through residents who contribute to the economy and culture.
Comparative Context with Other EU States
Similar policy changes have occurred in Cyprus and Bulgaria, both ending their CBI schemes due to EU concerns over money laundering, tax evasion, and security risks.
Looking Ahead: A New Era of Maltese Citizenship
The Maltese Citizenship Amendment 2025 is ushering in a selective, merit-based era of naturalisation, with more stringent due diligence, higher proof requirements, and deeper integration expectations.
Conclusion
The Maltese Citizenship Amendment 2025 marks a significant shift from investment-driven naturalisation to an EU-compliant, merit-based model. By ending the Citizenship by Investment programme, Malta aligns with EU standards while preserving national sovereignty, ensuring citizenship is granted to those who contribute meaningfully to the nation’s long-term interests.
