Malta Citizenship by Merit Reform 2025 | Explained & Analyzed

Published: August 12, 2025

Introduction: Malta Redefines Citizenship in 2025 

Malta has made a bold move in 2025. Effective 29 April, the government officially shut down its investment-based naturalisation scheme and launched the Citizenship by Merit Programme—a modern path that rewards genuine contribution over capital injection. 

This isn’t just a policy update. It’s a paradigm shift that aligns with EU principles, prioritizes talent, innovation, and societal value, and repositions Malta as a destination for global founders, inventors, researchers, and cultural leaders. 

Why the Reform Was Needed 

For nearly a decade, Malta’s Individual Investor Programme (IIP) allowed foreign nationals to gain EU citizenship through a financial contribution. However, mounting criticism from EU institutions, watchdogs like Transparency International, and ongoing media investigations led to reputational risk. 

The European Commission launched formal infringement proceedings in 2020, and in April 2025, the European Court of Justice (ECJ) ruled against Malta’s IIP framework structure. The verdict: it commodified EU citizenship. 

Malta’s response? A new legislative bill with substantial amendments to the previous Maltese Citizenship Act moving towards a merit-based citizenship model that is more aligned with European values and the country’s long-term vision. 

The Legal Framework: CAP 188 Reform 

The legal foundation for the new programme lies in the Granting of Citizenship for Exceptional Services (Amendment) Regulations, 2025, which amends CAP 188 of Malta’s laws. Key updates include: 

• Creation of a two-stage approval process, focused on demonstrated contribution, integration, and due diligence 

• Formation of an independent Evaluation Board for proposal assessment 

• Citizenship granted based on public good, innovation, and national interest impact 

The system derives inspiration from Austria’s Article 10(6) citizenship model, which has long rewarded exceptional achievers without monetary thresholds. 

How Malta’s Citizenship by Merit Works (Step-by-Step) 

Unlike the old scheme, this new programme demands active participation and strategic contribution. 

Stage 1: Submit Your Proposal Letter 

You must submit a comprehensive proposal that clearly outlines: 

• Your track record (e.g., patents, ventures, publications) 

• Your planned project in Malta 

• Defined KPIs, budgets, and delivery timelines 

• Letters of endorsement from Maltese institutions (e.g., University of Malta, Malta Enterprise) 

Stage 2: Naturalisation Application 

After receiving approval-in-principle: 

• Fulfil 8 months of continuous residence in Malta 

• Submit verified documentation, including updated due diligence and a language certificate 

• File the formal application with the Community Malta Agency (CMA) 

Total timeline: Approximately 12–15 months. 

Who This Is For: The Ideal Candidate Profile 

Malta is targeting applicants who make a measurable contribution to the country in the following areas: 

• Innovation & R&D: Blue tech, AI, medtech, robotics 

• Strategic Entrepreneurship: Relocation of EU HQs, job creation, startup incubation 

• Philanthropy & Sustainability: Projects in green housing, social equity, and climate resilience 

• Academic & Cultural Excellence: Nobel Prize winners, thought leaders, artists, coaches 

Each candidate must present proof of outcomes, such as: 

• Jobs created 

• IP commercialisation 

• Third-party audited KPIs 
• Partnerships with local institutions 

Tax and Compliance Benefits for Global Founders 

Beyond citizenship, Malta offers strategic financial benefits: 

• Remittance basis of taxation for non-domiciled residents 

• No tax on offshore income unless remitted 

• No wealth or inheritance taxes 

• 80+ double-taxation treaties globally 

 Example: A U.S. entrepreneur who receives a €1M dividend and remits only €200K to Malta will pay tax only on the remitted amount. The remaining €800K remains tax-free. 

Real-World Application Example  

Q: Can I still buy Maltese citizenship? 

 A: No. As of April 2025, all donation or investment-based schemes are closed. Only exceptional contributors can apply under the new merit system. 

Q: What qualifies as exceptional contribution? 

 A: Innovation, philanthropy, entrepreneurship, or world-class expertise with measurable local impact. 

Q: How long does the process take? 

 A: 12 to 15 months, including the 8-month Malta residency. 

Q: Is this model approved by the EU? 

 A: Yes. It aligns with the precedent set by Austria’s Article 10(6) and satisfies EU legal scrutiny. 

Final Take: Malta’s Shift Is a Global Opportunity 

This isn’t just a policy update. It’s Malta’s open invitation to the world’s best minds. 

Whether you’re building AI solutions, solving the housing crisis, or creating life-changing medical IP, Malta is now offering you a legitimate path to EU citizenship—one grounded in substance, not cheque size. 

Next Steps: 

 Want to check your eligibility under Malta’s new Citizenship by Merit programme? 

 Contact Endevio’s advisory team for a personalized assessment. 

And don’t forget to read the full guide: Malta Citizenship by Merit: 2025 Official Overview. 

Agenzija Endevio Ltd is authorized to act as an Accredited Agent by Agenzija Komunita Malta through license number AKM-AGEN