Malta Ends Citizenship by Investment and Adopts a Merit-Based Model (2025)

In a landmark decision for European migration policy, Malta has officially closed its long-running Citizenship by Investment (CBI) program and replaced it with a new merit-based naturalisation route. This shift — triggered by a key ruling of the Court of Justice of the European Union in April 2025 — has major implications for investors, policymakers, and anyone considering EU citizenship.

At a Glance: What Has Changed?

• CBI program ended: The “Citizenship for Exceptional Services by Direct Investment” scheme is now officially terminated.
• New merit-based route: Citizenship is now linked to contribution and achievement, not just capital.
• Stronger EU alignment: Malta is positioning itself as a model for compliant, high-integrity citizenship policy.
• Higher bar for applicants: Residency, merit, and due diligence requirements have all been tightened.

Why Was the CBI Program Abolished?

For years, Malta’s Citizenship by Investment (CBI) program was one of the most attractive routes to a European passport. It allowed investors to obtain citizenship in exchange for a substantial financial contribution, combined with relatively flexible residency conditions.

However, the program also drew increasing criticism from European institutions, which argued that “selling” citizenship could undermine security, integrity, and trust across the European Union.

The turning point came with an April 2025 ruling by the Court of Justice of the European Union, which made it clear that:

No EU member state may grant European citizenship purely in return for direct financial investment without evidence of a genuine connection to the local society.

In response, Malta was effectively compelled to dismantle its existing CBI framework and redesign its policy from the ground up.

What Is the New Model? From Investment to Merit

Starting July 2025, the only path to acquiring Maltese citizenship under special provisions is through what the government describes as:

“A merit-based naturalisation route for exceptional services and extraordinary achievements.”

1. Merit-Based Criteria Instead of Money

Under the new system, citizenship is no longer available simply for injecting capital. Instead, it is reserved for individuals who demonstrate genuine, high-level contributions in areas such as:

• Scientific research and academic excellence
• Innovation and emerging technologies
• Arts, culture, and creative industries
• Humanitarian and charitable work
• National projects with significant social or economic impact

The focus has shifted from “How much can you invest?” to “How much value can you create?”.

2. Minimum Physical Residency Requirement

Applicants are now required to:

• Reside physically in Malta for at least 8 months.
• Demonstrate real, ongoing interaction with the local community.
• Provide a clean criminal record and transparent professional history.

This aligns Malta with broader EU expectations that citizenship should reflect real presence and integration, not merely a financial transaction.

3. Multi-Layered Evaluation and Security Checks

The new merit-based route also introduces a more complex and robust assessment structure, which includes:

• A specialised committee to assess merit and exceptional achievements.
• Expanded and rigorous security and background vetting.
• Independent review by a government-authorised body.
• A mandatory, in-person interview with every applicant.

This multi-step process is designed to protect both Malta’s national interests and the integrity of EU citizenship as a whole.

Why Is This Transition Important?

1. Aligning More Closely with the European Union

The European Union has long pushed for the phasing out of pure CBI schemes. By terminating its investment-based citizenship program and replacing it with a merit-driven model, Malta sends a clear signal:

“We are committed to European standards and to the shared nature of EU citizenship.”

2. Creating Real Value Instead of Fast Capital

Rather than relying on one-off contributions or real estate investments, the new model seeks to attract people who can generate long-term value for the country: innovators, founders, researchers, cultural figures, and social impact leaders.

3. Redefining Citizenship in a Global Context

Globally, there is a growing recognition that citizenship is not a commodity to be traded. It is a deep social, cultural, and political bond.

Malta’s reforms reflect this evolving view and may influence how other countries — both within and outside the EU — re-evaluate their own citizenship and residency programs.

Who Benefits from the New System?

The primary beneficiaries of the new route are no longer traditional high-net-worth investors who simply seek a quick passport. Instead, the door opens to individuals such as:

• Researchers and innovators with notable breakthroughs.
• Internationally recognised artists and cultural leaders.
• Founders of social enterprises and impact-driven projects.
• Humanitarian and philanthropic figures.
• Professionals working in sectors of strategic importance to Malta.

In essence, the question is no longer “Who can pay?” but “Who can meaningfully contribute?”

Will This Affect Malta’s Economy?

In the short term, changes are likely:

• Direct revenues from CBI — especially from large financial contributions and real estate transactions — are expected to decline.

However, the long-term outlook may be more positive:

• Attracting high-impact global talent and expertise.
• Strengthening Malta’s reputation as a serious, compliant EU member state.
• Improving relations with European institutions and regulatory bodies.
• Positioning Malta as a hub for innovation, research, and excellence.

What Does This Mean for Those Seeking EU Citizenship?

For individuals looking toward Europe, the message is increasingly clear:

• Citzenship pathways will become more selective and merit-based.
• Real residency and local integration will be essential.
• Personal contribution, ethics, and track record will matter more than capital alone.

Malta is unlikely to be the only state to reform its approach. Its move may signal the start of a broader European shift away from investment-led models and towards systems that prioritise merit and genuine connection.

Conclusion: Malta Between an Economic Past and a Merit-Based Future

The transition from “citizenship by investment” to “citizenship by merit” is more than a technical policy adjustment. It represents a fundamental rethinking of who is invited to join the national community and on what basis.

In a world where debates over migration, identity, and belonging are becoming more intense, Malta’s new model offers a bold — and potentially influential — example. For investors and global citizens alike, it is a reminder that the future of citizenship is moving away from simple transactions and toward deeper, value-driven relationships between individuals and states.