The Global Reset in Citizenship Policy
The Court of Justice of the European Union in EC v Malta (C-181/23) ruled that citizenship and long-term residence should not be treated as transactional entitlements. This marked a turning point for European migration law. Although the Advocate General had argued for state sovereignty over nationality, the Court diverged, emphasising the need for genuine ties with the granting state.
Malta responded by reforming its legal framework. In July 2025, Parliament enacted Act XXI of 2025, amending the Maltese Citizenship Act to establish Citizenship by Merit as the principal discretionary route. The reform positions Malta at the forefront of aligning national citizenship law with EU jurisprudence.
See: European Citizenship & Residency in 2026: Strategic Insights for Global Families
Maltese Citizenship: from Investment to Merit
Until 2025, Malta allowed for naturalisation by exceptional services, often linked to investment contributions. While rigorous due diligence applied, the perception of a “transactional” approach drew criticism at EU level.
The new law explicitly removes commercialisation. Article 10(9) of the Maltese Citizenship Act, as amended by Act XXI of 2025, provides:
"the Minister may grant a certificate of naturalisation as a citizen of Malta by merit to an alien or stateless person, namely to a person who renders exceptional services or who makes an exceptional contribution, including through job creation, to the Republic of Malta or to humanity, or whose naturalisation is of exceptional interest to the Republic of Malta"
Citizenship by naturalisation may be granted by the Minister, acting on behalf of the Government of Malta, to a person whose exceptional contributions, whether in the economic, social, cultural, scientific, or civic field, are deemed to align with the national interest of Malta. This language codifies merit rather than purchase as the decisive factor. Naturalisation is now positioned as a recognition of contribution, not a transaction.
The Reformed Malta Permanent Residence Programme
The Malta Permanent Residence Programme (MPRP) was reformed in 2025 through Legal Notice 146 of 2025, introducing practical updates that make the programme more transparent and family-friendly, while retaining its rigorous standards.
Key Amendments
- Removal of Spouse and Minor Fees: The previous €10,000 administrative fee payable for a spouse and minor children has been abolished.
- Temporary Residence Permits: Applicants and dependants may now apply for a one-year renewable temporary residence permit, enabling relocation during processing.
- Property Flexibility: Beneficiaries who purchase property under the MPRP may now rent out their qualifying property in line with Residency Malta Agency guidelines.
- Reduced Adult Dependant Fees: The administrative fee for additional adult children, parents, and grandparents has been reduced from €10,000 to €7,500 per person.
Financial Requirements
MPRP applicants must:
- Pay a one-time government administrative fee of €60,000, with an additional €7,500 for each adult dependant (children, parents, or grandparents).
- Pay a government contribution of €37,000, within 8 months of Approval in Principle.
- Rent property in Malta for a minimum of €14,000 per year, OR purchase property valued at €375,000.
- Donate €2,000 to a local registered philanthropic, cultural, sport, scientific, animal welfare, or artistic NGO.
These reforms improve accessibility for families, offer early settlement options, and introduce greater property-use flexibility, while maintaining Malta’s reputation for a robust and credible residency framework.
Details of the Malta Permanent Residence Programme.
Complementarity of Citizenship and Residence
The reforms to both frameworks reflect a deliberate strategy:
- PRP provides an asset-backed, legally robust residence right, serving as a foundation for global mobility and family security.
- Citizenship by Merit offers a selective, discretionary pathway for those whose contributions enrich Malta’s national interest.
The two are separate and distinct regimes. Together, they ensure that Malta continues to serve both as a residency hub for global executives, entrepreneurs, and families, and as a jurisdiction willing to recognise long-term, substantive contributions with citizenship.
Strategic Implications for Global Families
For HNW and UHNW families, 2025’s reforms provide greater credibility, stability, and alignment with EU principles. Transactional language and perceptions have been removed, replaced with a framework built on reciprocal value between applicants and Malta.
Strategically, this means:
- Families can structure long-term succession planning in a compliant jurisdiction anchored in EU law.
- Advisors can consider Malta as a substance-over-form jurisdiction, having removed all transactional elements of the past “programme”.
- The PRP ensures a reliable residence right, while Citizenship by Merit provides a prestigious recognition of integration and contribution.
Strategic Implications for Investors and Advisors
The merit transition and PRP enhancements signal a broader trend: Europe is moving away from transactional migration models toward sustainable frameworks based on contribution and integration, akin to what a tax advisors we witnessed in the tax world with a focus on substance and away from jurisdisctions of convenience and treaty shopping. Malta’s dual residency and citizenship reforms of 2025 exemplify this shift.
How our Malta Immigration Lawyers can help you
Our award-winning Immigration & Global Mobility Law team is Malta’s oldest specialised immigration law practice. We have represented hundreds of families, from expatriate retirees to Fortune 500 executives in the full spectrum of residency and citizenship matters. We advise on the legal, tax, and strategic implications of Malta’s residence and citizenship frameworks, helping families structure sustainable global mobility and legacy planning.
