Why did Malta's citizenship-by-investment program end?
Malta's citizenship-for-investment route ended in two steps: a court judgment, then a new law. On 29 April 2025, the Court of Justice of the European Union ruled on Malta's 2020 investor scheme. It found the scheme broke EU law. Its press release sums it up: “The acquisition of Union citizenship cannot result from a commercial transaction.” 1
Maltese nationality brings EU citizenship with it. That is where the Court drew the line. It found that granting nationality “in direct exchange for predetermined investments or payments through a transactional procedure” breaks the treaty rule on Union citizenship. It also breaks the duty of sincere cooperation between member states. 1
| Date | What happened |
|---|---|
| July 2020 | Malta amends the Maltese Citizenship Act |
| 20 October 2020 | The European Commission sends Malta a letter of formal notice, opening its infringement case |
| November 2020 | Malta adopts regulations for “Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment”, the scheme the Court later struck down |
| 9 June 2021 | The Commission sends a second letter of formal notice |
| 6 April 2022 | The Commission issues a reasoned opinion |
| 28 September 2022 | The Commission refers Malta to the Court of Justice and calls it the only remaining member state operating such a scheme |
| 4 October 2024 | Advocate General Anthony Michael Collins publishes an opinion that, according to Malta's government, found no case against Malta |
| 29 April 2025 | The Court rules the 2020 scheme incompatible with EU law in Case C-181/23, Commission v Malta |
| 24 July 2025 | Act XXI of 2025 amends the Maltese Citizenship Act to address the judgment |
| 29 July 2025 | The official register lists the merit regulations, S.L. 188.06, in a version dated this day |
| 2 September 2025 | The agency publishes the amendments, including Legal Notice 159 of 2025 |
| 5 February 2026 | The agency separates merit from the repealed investment framework and states that it permits no marketing or promotion of the merit law |
Each date is as printed in the footnoted source. The 2020 regulations covered merit in Part III and direct investment in Part IV. The judgment concerned the investor scheme.
Malta's government answered the same day. It said the framework had brought in over €1.4 billion since it began in 2015. It said the money went to the National Development and Social Fund and the Consolidated Fund. 8
Is citizenship by merit the same as the former investment program?
No, and Malta's citizenship agency has said so in writing. On 5 February 2026, the Community Malta Agency described citizenship by merit. It called merit “neither a programme nor a scheme, pathway, continuation, or alternative” to the old investment framework. That framework, it says, was repealed after the Court's judgment. 2
Merit has its own rules. Act XXI of 2025 amended the merit provisions of the Citizenship Act. Legal Notice 159 of 2025 then amended S.L. 188.06, which sets the process and requirements. Its title is “Granting of Citizenship by Naturalisation on the basis of Merit Regulations.” The official register shows it wholly in force. 9, 10
The decision belongs to the state. In the agency's words, merit decisions “are discretionary, and applications are assessed strictly and diligently on a case-by-case basis.” 2
How do you evaluate an online offer using current law?
Put the offer next to the timeline and check five things.
- The date. Figures from before 29 April 2025 describe a scheme the Court found unlawful. 1
- The price. A set payment for citizenship is the model the Court rejected. 1
- The label. Calling merit a programme, a pathway or an alternative uses the words the agency rejects. 2
- The law it cites. Current rules run through Act XXI of 2025 and S.L. 188.06. An offer built on the 2020 regulations describes the repealed framework. 9, 10
- The agency. Citizenship sits with the Community Malta Agency. Residence sits with Residency Malta Agency. An offer that turns a residence fee into a passport joins two separate laws. 2, 3
Questions to put to a Maltese lawyer
- Which law and which article cover my situation, as in force today?
- Which agency decides, and what evidence does it assess?
- Which payments are refundable?
- What happens to money already paid if an application fails?
Keep each written answer with its date and the law it cites. A second lawyer can then check the first.
Does paying for residence lead to Maltese citizenship?
No. Malta keeps residence and citizenship under separate laws, run by separate agencies. The Community Malta Agency handles citizenship law. Residency Malta Agency runs the Malta Permanent Residence Programme (MPRP). That program, it says, “grants permanent residence in Malta and is distinct from the separate legislative provisions governing citizenship.” 2, 3
The second residence program is just as direct. The Nomad Residence Permit site says the permit “does not lead to any sort of permanent/long-term residency or citizenship.” 6
Whether years lived in Malta count toward naturalisation, and how, is a question for the Community Malta Agency, which applies the Citizenship Act. MMT's guide to citizenship, residency and tax residency explains how the three differ. 2
How much does Malta permanent residence cost?
The Malta Permanent Residence Programme publishes its charges. For one applicant they come to €99,500. That covers a €60,000 non-refundable administrative fee and a €37,000 government contribution. It also covers a €2,000 donation to a local NGO and a €500 residence card that covers five years. Applications go through a licensed agent. 3
| Charge | One applicant, EUR | Couple, EUR | Couple and one adult dependant, EUR |
|---|---|---|---|
| Administrative fee, non-refundable | 60,000 | 60,000 | 60,000 |
| Government contribution | 37,000 | 37,000 | 37,000 |
| Donation to a registered local NGO | 2,000 | 2,000 | 2,000 |
| Adult dependant fee, €7,500 each, spouse excluded | 0 | 0 | 7,500 |
| Residence card, €500 per person for five years | 500 | 1,000 | 1,500 |
| Total | 99,500 | 100,000 | 108,000 |
In US dollars at the ECB reference rate of 1.1592 per euro on 11 September 2026: $115,340, $115,920 and $125,194, rounded. The totals leave out housing, agent fees, health insurance, documents, translations and flights.
The NGO must be registered with the Commissioner for Voluntary Organisations. It must be active in philanthropic, cultural, scientific, artistic, sport or animal welfare work. Each applicant also needs the following. 3
- Stable and regular financial resources for yourself and your dependants.
- A valid travel document.
- Health insurance covering Malta and other European countries. 3
Table view: Five years of MPRP residence for one applicant renting at the minimum: €169,500 in five lines
| Item | Value (EUR) | Share |
|---|---|---|
| Rent, five years at €14,000 | €70,000 | 41% |
| Administrative fee, non-refundable | €60,000 | 35% |
| Government contribution | €37,000 | 22% |
| NGO donation | €2,000 | 1% |
| Residence card | €500 | <1% |
Rent and the administrative fee are more than three quarters of the €169,500. That total is $196,484 at the ECB rate of 1.1592 per euro on 11 September 2026. Agent fees, insurance, documents and living costs come on top. Source: 3, 11
What are the property requirements and obligations?
Rent at €14,000 a year or buy at €375,000, then keep the home for five years. The property can be anywhere in Malta, including Gozo. After five years, the beneficiary must still maintain a residential property in Malta. 3
| Line | Rent at the minimum, EUR | Buy at the minimum, EUR |
|---|---|---|
| One-time MPRP charges | 99,500 | 99,500 |
| Housing | 70,000 in rent over five years | 375,000 purchase price |
| Cash out over five years | 169,500 | 474,500 |
Buying commits €305,000 more cash than renting, and you own the home. In US dollars at 1.1592 per euro on 11 September 2026: $196,484 renting and $550,040 buying. Both columns leave out transaction costs, agent and legal fees, insurance and living costs.
A second test sits beside the home: capital assets. These are assets you own, counted apart from the charges you pay. The agency sets two tiers. MMT's explainer on the real cost of citizenship by investment splits money spent from money held the same way. 3
| Tier | Capital assets, EUR | Of which financial assets, EUR |
|---|---|---|
| First tier | 500,000 | 150,000 |
| Second tier | 650,000 | 75,000 |
The agency's wording: capital assets “of not less than €500,000, out of which €150,000 must be financial assets, or not less than €650,000, out of which €75,000 must be financial assets.”
The agency lists two property benefits. One is “the option to lease property, with the possibility to sub-lease after five years.” The other is “the option to lease purchased property in Special Designated Areas.” 3
What does Malta's Nomad Residence Permit cost?
The Nomad Residence Permit is for people whose work sits outside Malta. Three kinds of work qualify. 5
- A contract with an employer registered in a foreign country.
- Business for a foreign-registered company in which you are a partner or shareholder.
- Freelance or consulting work, under contract, for clients based in a foreign country.
People contracted by a foreign company to serve its Maltese subsidiary are excluded. 5
| Requirement or fee | EUR | Who it applies to |
|---|---|---|
| Minimum gross yearly income | 42,000 | Applicants |
| Annual gross income requirement retained | 32,400 | Applicants who submitted their application prior to 1st April 2024 |
| Application fee, non-refundable | 300 | Per person |
| Residence card issued by Identità | 100 | Per person |
Fees are paid by card only. Processing is expected to take 30 working days from the issue of the receipt of funds.
Fees come to €400 per person. That is $464 at the ECB rate of 1.1592 per euro on 11 September 2026. The €42,000 income floor is $48,686 at the same rate. 4, 5, 11
Moving on to permanent residence takes a fresh application. A permit holder can apply for the MPRP through a licensed agent listed on Residency Malta's website. If approved, the holder renounces the Nomad permit. 6 Before paying an agent, check that the name appears on Residency Malta Agency's list of licensed agents. 12
Which Maltese rules cover your goal?
Start with what you want from Malta. Each goal below points to one agency and one set of rules.
- An EU passport for a payment: Malta's route closed with the 29 April 2025 judgment. When the European Commission referred Malta to the Court in September 2022, it called Malta the only member state still running such a scheme. 1, 7
- A long-term home in Malta, with capital to show: the MPRP is the residence program for settling. Its charges, housing rules and asset tests are above. It grants residence only. 3
- A remote-work stay: the Nomad Residence Permit covers work for employers and clients abroad. 5
- Citizenship by merit: merit is decided at the state's discretion under S.L. 188.06. Read the agency's own notices. Treat anyone marketing merit citizenship as working against the agency's rule. 2, 10
- A family claim by descent: Act XXI of 2025 extended a deadline for citizenship by descent. It concerns when the family link counts as severed after the death of the relevant parent. The agency's 2 September 2025 notice explains it. 9
If Malta itself is the draw, begin with the place. MMT's Malta travel guides come before any paperwork. For residence in other countries, see the residency hub.
Frequently asked questions
What happens to people who already became Maltese citizens through the scheme?
Malta's government says decisions taken under both the current and the previous framework remain valid. It said so on 29 April 2025, the day of the judgment. 8
Did other EU countries sell citizenship too?
Yes. The European Commission says Cyprus stopped taking new applications on 1 November 2020. It finished pending ones in July 2021. Bulgaria abolished its scheme effective 5 April 2022. By 28 September 2022, Malta was the only member state still running one. 7
How many people used Malta's first investor scheme?
The European Commission dates Malta's original scheme to 2014. It says the scheme came close to its cap of 1,800 successful main applicants before the 2020 scheme opened. Malta's government dates the framework to 2015. 7, 8
An offer cites S.L. 188.04. Is that regulation still in force?
Not according to Malta's legislation register, which lists S.L. 188.04, the Grant of Citizenship for Exceptional Services Regulations, as repealed by Legal Notice 437 of 2020. The merit regulations in force are S.L. 188.06. The agency's 5 February 2026 notice calls S.L. 188.04 of 2017 the earlier law it revisited after the judgment. If an offer rests on S.L. 188.04, ask the Community Malta Agency in writing which regulation applies. 13, 10, 2
Does Malta permanent residence let me travel in Europe?
Residency Malta Agency lists visa-free travel across the Schengen Area as an MPRP benefit. The limit is 90 days within any 180-day period. 3
Can parents and grandparents join an MPRP application?
The agency lists the option to include up to four generations in one application. Each adult dependant other than the spouse adds a €7,500 fee. 3
Has the EU called for oversight of investor citizenship schemes?
Yes. The European Commission's report of 23 January 2019 looked at investor citizenship and residence schemes. It called for “more transparency and effective and independent oversight of the schemes and all actors involved.” 14
Sources & review date
Researched 2026-09-13. Prepared from primary sources, with a separate independent source review. Numbered notes in the text point to the sources below. Prices, entry rules and schedules change; use the linked authority for your dates.
- 1Press Release No 52/25: Judgment in Case C-181/23, Commission v Malta (Citizenship by investment), 29 April 2025 Court of Justice of the European Union · Accessed 2026-09-13 · Primary source
- 2Malta Citizenship by Merit (notice), 5 February 2026 Community Malta Agency · Accessed 2026-09-13 · Primary source
- 3Malta Permanent Residence Programme (MPRP): legal framework, requirements and fees Residency Malta Agency · Accessed 2026-09-13 · Primary source
- 4Nomad Residence Permit: application process Residency Malta Agency · Accessed 2026-09-13 · Primary source
- 5Nomad Residence Permit: eligibility Residency Malta Agency · Accessed 2026-09-13 · Primary source
- 6Nomad Residence Permit: visas and residence permits Residency Malta Agency · Accessed 2026-09-13 · Primary source
- 7Investor citizenship schemes: Commission refers Malta to the Court of Justice (IP/22/5422), 28 September 2022 European Commission · Accessed 2026-09-13 · Primary source
- 8Press release by the Government of Malta following the judgment by the Court of Justice of the European Union, 29 April 2025 Government of Malta, published by Community Malta Agency · Accessed 2026-09-13 · Primary source
- 9Amendments to the Maltese Citizenship Act and subsidiary legislation, 2 September 2025 Community Malta Agency · Accessed 2026-09-13 · Primary source
- 10S.L. 188.06, Granting of Citizenship by Naturalisation on the basis of Merit Regulations Legislation Malta, Ministry for Justice · Accessed 2026-09-13 · Primary source
- 11Euro foreign exchange reference rate, US dollar, 11 September 2026 European Central Bank · Accessed 2026-09-13 · Primary source
- 12List of licensed agents Residency Malta Agency · Accessed 2026-09-13 · Primary source
- 13S.L. 188.04, Grant of Citizenship for Exceptional Services Regulations (repealed) Legislation Malta, Ministry for Justice · Accessed 2026-09-13 · Primary source
- 14Investor citizenship schemes, including the Report on Investor Citizenship and Residence Schemes of 23 January 2019 European Commission · Accessed 2026-09-13 · Primary source