Malta Drops Investor Citizenship, Unveils Merit-Based Naturalisation Reform

The Maltese government has tabled Bill No. 140 of 2025, proposing substantial amendments to the Maltese Citizenship Act (Cap. 188), aiming to align Malta’s citizenship laws with recent European Union judgments and modernise aspects of citizenship by descent, naturalisation by merit, and adoption-related citizenship issues.

Introduced by Minister for Home Affairs Byron Camilleri, the bill primarily addresses the outcomes of a recent European Court of Justice (ECJ) ruling; Case C-181/23, Commission v. Malta; which effectively invalidated the existing “Individual Investor Programme” (IIP). Consequently, the bill removes all explicit references to this investor-focused scheme, signifying Malta’s clear departure from controversial citizenship-by-investment pathways.

In place of the scrapped IIP, the amendment introduces a refined pathway called “citizenship by merit.” Under this route, the Minister can grant citizenship to individuals who make “exceptional” contributions or deliver “exceptional” services to Malta or humanity at large. Clearly defined criteria emphasise scientific, cultural, entrepreneurial, philanthropic, or technological excellence. Prospective applicants would need to demonstrate superior qualities and tangible value-add to the nation, thus shifting the emphasis away from financial investment alone.

Further, the bill proposes extending critical deadlines affecting citizenship through descent. Dates that previously acted as cut-offs; namely, 1 August 2007, 1 August 2010, and 31 July 2010; are pushed forward to 1 August 2028. This change ensures greater continuity and stability for future generations within the Maltese diaspora, particularly where citizenship claims could otherwise lapse following the death of the relevant Maltese parent.

Adoption provisions also undergo crucial updates. Adoptions completed on or after 1 August 2020, involving minors under the age of eighteen, will now explicitly regard adopters as parents for citizenship purposes. Conversely, historical adoptions, especially those involving adoptees aged ten or older (from 1989 to 2020) or adults aged eighteen or older after 2020, will no longer confer automatic citizenship rights, marking a distinct clarification in the law.

Enhancing governance and oversight, the amendments introduce clearer investigative powers for the Citizenship Regulator. Under the revised Article 25A, applicants refused citizenship under the new merit-based criteria can now formally submit complaints, with the regulator mandated to investigate and submit findings directly to the Minister.

Finally, to avoid retrospective confusion, the bill provides that applications submitted before the new law takes effect may be considered under previous provisions, subject to applicable policies, regulatory confirmations, transitional rules, and any other relevant legal considerations that may apply.

Overall, this legislative overhaul seeks to demonstrate Malta’s commitment to compliance with EU legal standards, creating a robust framework for citizenship that prioritises exceptional talent, ethical governance, and sustained cultural and familial connections to the nation.