Malta citizenship by investment ending has become a major development following the European Court of Justice (ECJ) ruling on April 29, 2025. The court ruled that Malta’s Citizenship by Naturalization for Exceptional Services (CES) by Direct Investment program did not comply with EU law as it allowed citizenship to be granted mainly based on financial investment without requiring a genuine connection to the country. In response, Malta has agreed to review the legal implications.
As part of these changes, Malta is introducing a new system called citizenship by merit, which focuses on granting citizenship to individuals who make exceptional contributions to Malta’s growth, innovation, and society rather than through direct investment.
This article will provide an overview of the changes to the Malta Citizenship by Naturalization for Exceptional Services (CES) by Direct Investment program, explain the impact of the ECJ ruling, changes to the citizenship laws in Malta, how this affects citizenship by investment trends across the EU, and provide other long-term residency options available in Malta.
- Is the Malta Citizenship by Investment Program Ending?
- Malta’s Citizenship by Investment Case with the ECJ Timeline
- How will the Malta Citizenship by Investment program’s end affect Malta’s citizenship laws?
- Malta CES Overview
- Can you still apply for the Malta Citizenship by Investment program?
- Citizenship by Investment Trends in Europe
- Other Malta Residency Options
Is the Malta Citizenship by Investment Program Ending?
Yes, the Malta Citizenship by Investment program is ending. On April 29, 2025, the European Court of Justice (ECJ) ruled that Malta’s Citizenship by Naturalisation for Exceptional Services by Direct Investment, commonly known as its citizenship by investment (CBI) program, violates European Union law and must be discontinued.
The court found that the program breaches Article 4(3) of the Treaty on European Union (TEU), which requires mutual trust and sincere cooperation between EU member states. The ECJ decided that granting EU citizenship purely in exchange for financial investment, without requiring a real connection to the country, undermines the nature of EU citizenship and the integrity of the union.
The decision also emphasized that treating citizenship as a commodity weakens the trust and shared values between EU countries.
Malta’s Citizenship by Investment Case with the ECJ Timeline
The attempt to end Malta’s citizenship by investment program started before the 29 April ECJ ruling against Malta’s CBI program. The case started in 2020 and has continued to spark conversation around EU citizenship through investment.
October 20, 2020
The European Commission opened infringement proceedings against Malta, arguing that its CBI program, granting citizenship in exchange for investment, undermines the concept of EU citizenship and lacks a genuine connection to the country.
June 9, 2021
Malta changed its citizenship program after the EU raised concerns. The new version limited approvals to 400 people per year and required investors to live in Malta for at least 12 months before applying. They must invest between €600,000 and €750,000, rent or buy a home, and donate €10,000 to charity. But the EU court still argued the program granted citizenship without a real connection to Malta.
April 6, 2022
The European Commission issued a formal, reasoned opinion asking Malta to end its citizenship by investment program.
September 29, 2022
Since Malta did not make sufficient changes, the European Commission formally referred the case to the European Court of Justice (ECJ). The Commission argued that Malta’s program violated Article 4(3) of the Treaty on European Union (TEU), which requires member states to cooperate in good faith, and Article 20 of the Treaty on the Functioning of the European Union (TFEU), which defines EU citizenship rights.
June 17, 2024
The ECJ held a hearing on the case. Malta defended its program, stating that citizenship is a matter of national sovereignty and that EU law does not limit how member states grant citizenship.
October 4, 2024
Advocate General Anthony Michael Collins gave his opinion, which was not binding but became influential. He supported Malta’s position, arguing that EU law does not require applicants to have a “genuine link” or close connection with the country before being granted citizenship.
April 29, 2025
The ECJ issued its final judgment, ruling against Malta’s CBI program violated EU law. The court stressed that granting citizenship based solely on investment weakens trust between EU member states and turns EU citizenship into a commodity. Malta said it respected the ruling and will review its legal implications.
How will the Malta Citizenship by Investment program’s end affect Malta’s citizenship laws?
The termination of Malta’s Citizenship by Investment (CBI) program in July 2025 has led to significant changes in the country’s citizenship laws. In response to the European Court of Justice’s ruling in April 2025, which deemed the CBI scheme incompatible with EU law, Malta has introduced the Citizenship by Merit program under Act XXI of 2025.
The legislation amendments are still progressing through Parliament, and the Malta Agency will provide more details on the operational aspects once the law is formally adopted. However, the provisional framework provides anidea of the new citizenship by merit program:
- Ministers will still have the power to grant citizenship by naturalization, but contributions no longer include financial investments, property, or donations.
- Citizenship may be granted based on merit, such as contributing to the economy, creating jobs, or providing exceptional services to society.
- Individuals can apply by demonstrating an exceptional contribution to Malta, particularly in ways that support Malta’s Vision 2050 goals. Examples of qualifying contributions include science, research, technology, entrepreneurship, culture, arts, sports, and philanthropy.
- Applicants must submit a proposal outlining how their work benefits Malta and aligns with national objectives. Citizenship will be based on the real value an individual brings to the country, rather than financial contributions.
Malta CES Overview
The Malta Citizenship by Naturalization for Exceptional Services (CES) allowed individuals to gain citizenship through contributions to the National Development and Social Fund, property, and approved charities.
The program was known for its strict four-tier due diligence process, which made it one of the most trusted routes to citizenship in the EU. A Maltese passport offered visa-free travel to over 188 countries, access to high-quality healthcare and education. It did not require applicants to live in Malta, making it a flexible choice for investors and families.
Investment options
- Investment requirement: €600,000 if living in Malta for 36 months, or €750,000 if living for 12 months before applying. Extra €50,000 per dependent.
- Property requirement: Rent a home for at least €16,000 per year for five years, or buy a property worth at least €700,000. If purchased, the property must be kept for five years and cannot be rented out.
- Charity donation: €10,000 to a registered charity or NGO approved by the Community Malta Agency, supporting areas like sports, culture, science, animal welfare, philanthropy, or the arts.
Can you still apply for the Malta Citizenship by Investment program?
No, applications for Malta’s Citizenship by Investment program are no longer accepted. The European Court of Justice ruled that the program violates EU law because it allows individuals to obtain citizenship solely through financial investment, without requiring a genuine connection to Malta. Consequently, Malta is required to end the program.
Citizenship by Investment Trends in Europe
Citizenship by investment in Europe has faced scrutiny in recent years, with some programs being closed due to legal and ethical concerns. Cyprus ended its citizenship by investment program in November 2020 after it came under fire for granting citizenship to individuals who didn’t meet all legal requirements.
While critics argue that CBI programs undermine traditional national belonging and integration ideas, others see them differently. According to the Global Intelligence Unit at Global Citizen Solutions, citizenship in today’s globalized world is evolving, and well-regulated CBI programs can be a legitimate way to attract foreign investment and drive economic growth, especially when there is a meaningful connection between the investor and the host country. The OECD reported that in 2022 alone, citizenship and residency programs generated over €20 billion globally.
Other Malta Residency Options
The Malta Citizenship by Investment Program still offers other routes to long-term residency with different legal requirements, such as the Malta Permanent Residency by Investment program and other short-term visas, such as the Malta Digital Nomad Visa and the Malta Retirement Visa.
| Visa Type | Description |
|---|---|
| Malta Permanent Residency by Investment (MPRP | This program grants permanent residency to non-EU citizens who invest in Malta. Applicants must make a government contribution of €37,000, donate €2,000 to a registered NGO, and either purchase property worth at least €375,000 or rent a property for a minimum of €14,000 per year. The MPRP allows holders to live indefinitely in Malta and travel freely within the Schengen Area for short stays. |
| Malta Digital Nomad Visa | Designed for remote workers who earn income from abroad, the Digital Nomad Visa allows them to live in Malta while working online for foreign companies or clients. It is valid for one year and renewable. Applicants must show proof of stable income, valid health insurance, and accommodation in Malta. |
| Malta Retirement Visa | Aimed at financially independent retirees, this visa allows non-EU citizens to live in Malta if they can prove a stable pension or regular income and hold private health insurance. Applicants must rent or purchase property in Malta and reside there for most of the year, enjoying a peaceful and safe EU lifestyle. |
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Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
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