Malta has officially scrapped its controversial citizenship-by-investment scheme with proposed legislative amendments announced by the Government on Wednesday (today), shifting instead to a merit-based model inspired by Austria’s approach to naturalisation.

The move follows a ruling by the Court of Justice of the European Union (CJEU) in case C-181/23, which found that Malta’s Exceptional Investor Naturalisation (MEIN) programme breached EU principles by effectively “commercialising” EU citizenship. In line with the ruling, the amendments to the Maltese Citizenship Act, Chapter 188, remove all references to the MEIN programme, the related transactions, and the agents previously empowered to facilitate the acquisition of Maltese citizenship.

According to the Government, the amendments have three key objectives:

1. To align Maltese legislation with the CJEU ruling, ensuring full compliance by eliminating any provisions that contradict EU law.
2. To strengthen merit-based citizenship laws, in line with Malta Vision 2050, focusing on added value and job creation.
3. To reaffirm the national competence of citizenship, a principle the Maltese Government says was upheld by the CJEU’s ruling and one it remains committed to defending.

Addressing a press briefing in Parliament, Minister for Home Affairs, Security, Reforms and Equality Byron Camilleri stated: “Following extensive consultation and Cabinet approval, the Government has presented amendments to the Maltese Citizenship Act in Parliament. Malta will continue to uphold its sovereign right to grant citizenship in the national interest – a principle we have always defended and which the European Court has reaffirmed.”

He added that while the Exceptional Services programme has been discontinued, Malta will retain the ability to grant citizenship through merit, based on exceptional contributions aligned with the country’s long-term goals.

To that end, Article 10(9) of the Act will be revised to state that the Minister responsible may grant naturalisation to individuals who offer “exceptional service or exceptional contribution, including the creation of jobs, to the Republic of Malta or humanity, or whose naturalisation is of exceptional interest” to the nation.

Such “exceptional” contributions are defined as being “manifestly superior” and may come from individuals such as scientists, researchers, athletes, artists, entrepreneurs, philanthropists and technologists. Notably, the term “investors” has been dropped entirely.

Lawyer Andre Zerafa, from Ganado Advocates, who formed part of the legal team behind the reforms, explained that the amendments directly address the CJEU’s judgment and ensure that Malta’s legal framework remains robust and compliant.

In an exclusive comment to MaltaInvest.mt, Minister Camilleri also clarified that should a professional who was granted citizenship on merit cease to provide their services or retire, their citizenship will be revoked.

“Anyone who can offer an exceptional service or contribution to our country may submit a proposal to be considered through a rigorous process that evaluates the added value Malta needs, in line with the Malta Vision 2050 we are working toward,” the Minister concluded.

Additional reporting by Robert Fenech.

Featured Image: (Left to right) Minister for Home Affairs, Security, Reforms and Equality of Malta Byron Camilleri and Lawyer Andre Zerafa