Malta has officially ended its Citizenship by Investment Programme, drawing a definitive line under one of the most controversial chapters in the country’s recent political and economic history. The decision follows mounting pressure from the European Union and culminated in a landmark ruling by the Court of Justice of the European Union (CJEU) on April 29, 2025.
The move aligns Malta with EU principles regarding the integrity of citizenship and responds to long-standing criticism of “golden passport” schemes that allowed wealthy individuals to obtain nationality—and therefore EU citizenship—by making large financial contributions.
What Was the Citizenship by Investment Programme?
Malta’s Individual Investor Programme (IIP) was launched in 2014 as a way to attract foreign capital. Later rebranded as the Maltese Exceptional Investor Naturalisation (MEIN) scheme, it allowed foreign nationals to acquire Maltese citizenship in exchange for a set of financial contributions and investments. It was often referred to internationally as a “golden passport” scheme.
To qualify, applicants were required to:
– Make a non-refundable contribution of €600,000–€750,000 to the National Development and Social Fund (NDSF)
– Invest in real estate (minimum €700,000 purchase or long-term lease of €16,000/year for five years)
– Make an investment of €10,000 or more in government-approved bonds, stocks, or funds
– Maintain residency in Malta for a minimum of 12 months
– Pass due diligence checks
Applications were submitted through licensed agents, with a cap of 1,800 applications under the original IIP. While the programme raised significant revenue—over €1.5 billion by 2023—it also attracted criticism for enabling the sale of EU citizenship with limited personal connection to Malta.
Why Was It Terminated?
The European Commission had long warned Malta that the programme risked violating EU law, specifically the principles surrounding Union citizenship. Critics argued that citizenship—especially one that grants access to the EU single market, Schengen zone, and political rights—should not be commodified.
The legal tipping point came in April 2025, when the CJEU ruled in Case C‑181/23 that Malta’s scheme breached EU treaties. The Court found that granting nationality primarily in exchange for investment, without establishing a “genuine link” between the applicant and the country, violated Articles 20 and 21 of the Treaty on the Functioning of the European Union (TFEU).
Government Response: A New Direction
In direct response to the judgment, Malta’s government introduced amendments to the Maltese Citizenship Act (Chapter 188) in July 2025. These changes:
– Permanently abolish the Granting of Citizenship for Exceptional Services programme
– Remove all references to financial transactions or agents
– Reinforce the principle that citizenship is granted solely in the national interest
– Introduce a more rigorous Citizenship by Merit framework (focused on exceptional contributions to society)
Minister for Home Affairs, Byron Camilleri, stated:
“We are removing all transactional elements from the citizenship process. Going forward, citizenship will be granted to those whose naturalisation is of exceptional interest to the Republic of Malta.”
The End of an Era
The termination of the Citizenship by Investment programme marks the end of an era in Malta’s economic policy. While the scheme brought considerable financial benefits—funding public projects and economic development—it also brought reputational risks and increasing legal and political isolation within the EU.
With the launch of the Citizenship by Merit programme, Malta aims to pivot toward a system that rewards talent, innovation, and genuine societal value, rather than wealth alone.
