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July 18 2025 06:57:56 by PCLMedia
 
Malta is officially shutting down its long-criticised golden passport programme, marking a significant policy shift toward a citizenship model grounded in merit, innovation, and meaningful contributions to society.

The move follows a landmark ruling by the European Court of Justice (ECJ), which found Malta’s citizenship-by-investment scheme to be in violation of EU law. The ECJ concluded that such a model effectively commodified EU citizenship, allowing individuals to acquire nationality—and by extension, EU rights—through purely financial means.

At a press briefing on Wednesday, Home Affairs Minister Byron Camilleri confirmed that all transactional elements of the naturalisation process will be abolished. “This reform aligns Malta’s citizenship framework with European values, while encouraging real, long-term contributions from global talent,” Camilleri said.

Understanding Malta’s Golden Passport Scheme

Malta’s golden passport programme, formally known as the Individual Investor Programme (IIP), was launched in 2014 and quickly gained international attention. It allowed wealthy foreign nationals to obtain Maltese—and thus EU—citizenship in exchange for a significant financial outlay, typically involving:

* A non-refundable government contribution (around €650,000+),
* Investment in real estate or government bonds,
* And a one-year residency requirement (later reduced under certain conditions).

Supporters argued the scheme attracted foreign investment and bolstered Malta’s economy. However, it also attracted widespread criticism for undermining the integrity of EU citizenship and creating potential loopholes for money laundering and security threats. The European Commission repeatedly called for its termination, citing insufficient vetting and lack of meaningful ties between applicants and the country.

Over the years, Malta's golden passport scheme generated hundreds of millions in revenue, but it also placed the country under mounting political and legal pressure, culminating in the ECJ’s recent judgment.

From Transaction to Transformation: A New Path Forward

The Maltese government is now turning the page by reinforcing its citizenship-by-merit model, a framework originally introduced in 2017 but rarely utilised in practice. The revised approach shifts the focus from capital to capability—welcoming individuals who have demonstrated exceptional skill, innovation, or service that benefits Malta or humanity.

Under the new criteria, citizenship may be granted to individuals such as:

Scientists and researchers making groundbreaking discoveries,
Technologists and entrepreneurs creating jobs and supporting Malta’s Vision 2050,
Athletes, artists, and cultural performers enhancing Malta’s international presence,
Philanthropists and humanitarians making demonstrable global impact.

Applicants must submit their request to Aġenzija Komunità, along with a detailed proposal outlining the exceptional services they provide or plan to provide. There is no longer a financial price tag attached to the process; instead, citizenship will be based on substance and sustained value.

A strengthened due diligence process will ensure rigorous screening, and an evaluation board will make recommendations to the Minister, who retains the final say.

What Happens to Previous Applications?

Minister Camilleri confirmed that all citizenships previously granted under the now-defunct IIP remain valid. However, pending applications that have not yet been approved will be closed and will not be processed further.

A Model for Responsible Citizenship

This legislative shift is more than a legal adjustment—it signals a broader recalibration of how Malta views nationality. By replacing cash-for-passport schemes with a merit-based model, the country aims to protect its international standing, meet EU expectations, and attract individuals who actively contribute to its progress.

In doing so, Malta is no longer selling citizenship—it’s inviting partnership, grounded in purpose, performance, and public value.
 

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