Malta scraps passport sales, opens door to ‘merit-based’ citizenship

Malta has officially scrapped its citizenship-by-investment scheme with a proposed revision to the law announced by the Maltese Government on Wednesday (today), opting instead for an Austria-style policy whereby individuals can be granted Maltese citizenship on merit.

The move follows a recent judgement by the Court of Justice of the EU, which ruled that the Malta Exceptional Investor Naturalisation (MEIN) programme flouted the principles enshrined in the EU treaties. It argued that the scheme “amounts to the commercialisation of EU citizenship.”

The proposed amendments to the Citizenship Act are intended to bring the country's laws in conformity with the judgment by removing all reference to the programme, the transaction and the agents empowered to facilitate the acquisition of citizenship.

At the same time, the laws surrounding citizenship-by-merit will be amended in line with the aims of Vision 2050, the country's development plan for the next 25 years. The focus, the Government emphasises, is on the need for value added contributions and job creation.

To that end, amendments will be made to article 10(9), which will now state that the Minister responsible can grant naturalisation to a person who gives "exceptional service or exceptional contribution, including the creation of jobs, to the Republic or Malta or humanity, or whose naturalisation is of exceptional interest" to the country.

Information provided by the Government goes on to describe the meaning of "exceptional" as "manifestly superior", with such contributions or services made or given by "scientists, researchers, athletes, artists, entrepreneurs, philanthropists and technologists" - with the latter two terms replaces the previously mentioned "investors".

Malta’s Minister for Home Affairs, Security, Reforms and Equality, Byron Camilleri, explains to BusinessNow.mt that if a professional who was granted citizenship ceases to provide their services or retires, their citizenship will be revoked.

The bill to amend the law will be presented in Parliament on Wednesday evening.

Additional reporting by Robert Fenech.