THE CONCEPT OF CITIZENSHIP

Citizenship, as we have seen in a specific article on how to acquire citizenship in Europe, represents the legal bond between a person and a State, from which civil and political rights and duties derive.

In concrete terms, it means being able to participate in the public life of the country (voting, access to public competitions, consular protection abroad), as well as having access to civil and social rights, such as education, healthcare, and social security. In return, the citizen is required to respect the laws and fulfil certain obligations.

Citizenship establishes the legal belonging of a person to a nation through ties of parentage, descent, or territory.

Ius Sanguinis (Right of Blood)

This is the principle adopted by Italy and many other European countries. Citizenship is transmitted by descent, meaning it is automatically granted to a child with at least one citizen parent.

We recently saw how in Italy, as of March 2025, the link by descent was significantly reduced and modified. However, the new law presents critical issues regarding the decree, which became law, from the perspective of unconstitutionality and illegitimacy, and it is now under review by the Constitutional Court.

Ius Soli (Right of Soil)

Citizenship is acquired by birth on the territory of a State, regardless of the parents’ citizenship. This is the model followed by countries such as the United States (although the permanence of the right to ius soli is currently under discussion) and Canada.

Citizenship by Marriage

Some legal systems provide the possibility of obtaining citizenship after marriage to a citizen of the country, subject to meeting certain conditions (e.g., cohabitation, duration of the marriage, presence of children, absence of a criminal record).

Citizenship by Naturalization

This is the most common path for those without birth or family ties. Citizenship is granted upon application, by a measure of the public authority, when certain conditions are met, such as at the end of a period of legal residence (which varies from State to State) and the occurrence of other requirements, like social integration, language knowledge, and the absence of criminal convictions. In some cases, it is also granted for particular merits.

Citizenship by Investment

A growing number of States have introduced programs that allow individuals to obtain citizenship (or residence) through significant economic investments, such as: real estate purchases, donations to state funds, business creation, investments in government securities.

PREVIOUS Citizenship by Investment in MALTA

The Maltese legislation previously provided the possibility to apply for citizenship after having spent a minimum period of 12 months of residence in Malta through:

• A non-refundable contribution of €740,000 with less than 36 months of residence, reduced to €590,000 with at least 36 months. In addition, €50,000 for each additional family member.

• Purchase of a property with a minimum value of €700,000 or rental of a property with a minimum annual rent of €16,000.

• Health insurance, agency fee of €10,000, due diligence fee of €15,000, residence permit €5,000, and a philanthropic donation of €10,000.

On 29 April 2025, the Court of Justice of the European Union declared the Maltese citizenship-by-investment program illegitimate, and the relevant law was abolished.

NEW MERIT-BASED CITIZENSHIP LAW IN MALTA

In Malta, on 24 July 2025, the new citizenship law was officially published, marking a paradigm shift from the past.

The era of the so-called “sale of passports” – based on investments and significant financial contributions – is definitively closed, and a new phase opens with the introduction of a merit-based citizenship program, which does not include investment thresholds or mandatory donations.

This is, therefore, a citizenship that is not purchased, but is recognized based on personal worth and contributions made to the country.

The legislation affirms the principle that the granting of citizenship remains a national competence and establishes that candidates must demonstrate “having made an exceptional contribution to Maltese society or economy, following rigorous verification.”

Beneficiaries of the New Legislation

The new regime allows for the granting of citizenship to individuals who have provided outstanding services and made significant contributions to Malta, including scientists and researchers, athletes and sportspeople, artists and cultural operators, entrepreneurs, philanthropists, and technologists.

Among the merit criteria is also the creation of new jobs, recognized as an extraordinary contribution to the Maltese economy.

Program Objectives

Through this reform, Malta aims to attract people of talent, value, and vision, capable of developing entrepreneurial, scientific, cultural, and environmental initiatives that foster the country’s economic growth, innovation, sustainability, job creation, and cultural and social progress, in line with the country’s development and growth projects and visions.

Procedure and Critical Issues

Applicants who can document their exceptional contribution may submit a citizenship application, which will be assessed by an independent commission against stringent criteria.

The law provides a precise procedure for submitting an application.

There is an initial phase in which the candidate submits a letter or Proposal Letter to Aġenzija Komunità Malta, declaring the exceptional contribution or service they have rendered or intend to render, and a detailed plan on how the applicant intends to continue contributing to the Republic of Malta after naturalization, should the application be successful. The agency, after rigorous due diligence, will assess the candidate’s merits and grant approval to submit the citizenship application.

In the citizenship application, which must also be submitted to the Agency, the candidate must provide proof of Maltese residence for at least 8 months, proof of owning or renting a property, proof of the exceptional contribution made or to be made, as well as knowledge of the Maltese or English language and ties to the territory.

The agency, having reviewed the application and the completeness of the documentation again, then forwards it with its opinion to the Minister, who will have the final power to decide whether to reject the application or approve it by granting citizenship.

The Minister has no obligation to provide reasons for the decision taken, which is final and non-appealable.

In case of approval, within 6 months the candidate will take an oath and obtain the Maltese certificate of citizenship.

Even though the determination of the modes of acquisition of citizenship falls within the discretionary powers and competences of a State, and as established by the European Court of Justice, it certainly cannot be commercialized in the absence of a genuine link with the country, in my opinion, some perplexity remains regarding the flexibility of the new merit-based citizenship granting legislation.

The absence of detailed parameters to define what falls within the concept of “exceptional contribution” leaves, in fact, a wide margin of discretion and free interpretation to the competent authorities in the evaluation of applications and the granting of citizenships.

Furthermore, the impossibility of knowing the reasons for a possible rejection by the Minister leaves room for subjective and unappealable decisions.

CONTACT MALTAWAY for CITIZENSHIP IN MALTA, ITALY and Worldwide and for
SPECIAL TAX REGIMES FOR RESIDENTS IN MALTA, ITALY and Worldwide

For any clarification, consultation, legal opinion, support with procedures and applications for both citizenship and special taxation schemes in Malta, in Italy, and worldwide, do not hesitate to contact us. The professionals at Maltaway place at your disposal their International Practice of over 40 years.