Country Update 2025: MALTA

Contributed by: Marina Magri

May 2025

1. Legislative Changes

There are various legislative changes relating to the Labour Market and the protection of workers’ rights. The main changes include changes made to Business immigration, which relates to the Malta Permanent Residency Program, and employment changes for non-EU company directors and/or shareholders.

2. Business Immigration

MPRP Programme- Legal Notice 310 of 2024

The Malta Permanent Residency Program (MPRP) has undergone significant changes aimed at investors seeking permanent residency. Key updates include:

Elegibility criteria	Pre-2025 requirements	New requirements
Assets	At least €500,000, including €150,000 in financial assets	At least €500,000, including €150,000 in financial assets, OR €650,000, with a minimum of €75,000 in financial assets
Adult child of the main applicant or spouse	No set age limit	Not older than 29 years of age

Property requirements	Pre-2025 requirements	New (1 January 2025)
Minimum - Purchasing a property in Malta or Gozo	South or Gozo - € 300k Rest of Malta -    € 350k	Malta or Gozo - € 375k
Minimum - Renting a property in Malta or Gozo	South or Gozo - € 10k per year Rest of Malta -    € 12k per year	Malta or Gozo - € 14k per year

Fees and contributions:	Pre-2025 Requirements	New (1 January 2025)
Administration Fee (MA)	€ 40k	€ 50k
Dependents (incl spouse & children)	€ 0k	€ 10k per dependent
Parents & grandparents	€ 7,5k per dependent	€ 10k per dependent
Rental contribution	€ 58k	€ 60k
Purchase contribution	€ 28k	€ 30k

Employment Changes for companies directors and/or shareholders

A recent amendment in Malta's regulations now requires any non-EU national residing in Malta who wishes to serve as a director or shareholder of a company to obtain a work permit specifically linked to that company. Non-EU nationals are allowed to hold a maximum of two directorships: one in a full-time capacity and one in a part-time capacity. Additionally, individuals on a single-permit residence can apply for a secondary Employment License, but this does not extend to director or shareholder roles unless their primary employment role is also as a director or shareholder.

Consultation Document NL-0001-2025 

This comprehensive reform aims to stabilize the labour market and protect workers' rights. Key measures include:

• Measures to retain foreign workers and ensure their long-term stability.

• Enhanced protection of employee rights.

• Increasing the first-time work permit application fee from €300 to €600, while reducing renewal fees to €150 annually.

• Restricting employers from hiring non-EU nationals for the same position within 12 months of making a worker redundant.

• Introducing minimum termination rate thresholds for companies, with restrictions on hiring third-country nationals if exceeded.

• Mandating wage payments to non-EU nationals through bank accounts to enhance transparency.

• Providing a 30-day grace period, extendable by another 30 days, for foreign workers who lose their jobs to find new employment.

• Allowing partners of Maltese nationals to obtain residence permits with work rights.

• Requiring non-EU nationals to undergo an integration course prior to arrival in Malta.

• Adoption of a skills-based approach to align migration with market needs.

Newly Registered Businesses

Proposal in the Malta Labour Migration Policy changes:

• Newly incorporated businesses without Maltese, EU, or long-term resident ownership may be excluded from applying for work permits for non-EU nationals. 

• Exemptions may apply for businesses that are endorsed or supported by Malta Enterprise.

Family Reunification Rules

Proposal in the Malta Labour Migration Policy  Changes:

• Streamlined application processes.

• Reduced waiting times for family reunification applications.

Employment Visa Changes

• Policies to attract and retain skilled workers.

• Sector-specific visa requirements to address labour shortages.

3. Asylum

No mayor issues in this area.

4. Deportation

No mayor issues in this area.

5. Citizenship

The much-awaited court judgment for Case C-181/23, European Commission v. Malta has recently been issued. The key legal issues included the European Union's competence in matters of citizenship acquisition and the genuine-link requirement.

Opinion of the Advocate General

In October 2024, the Advocate General's opinion was published. Although not binding, these opinions are often followed by the Court. The Advocate General supported Malta, stating that the EU lacks competence in matters of citizenship acquisition by Member States. The opinion also held that a state may refuse to recognise nationality granted by another state if there is no genuine link between the individual and the state. The Advocate General recommended dismissing the Commission's case and that the Commission should bear its costs and those of Malta.

Court of Justice of the European Union

On 29 April 2025, the Court of Justice of the European Union (CJEU) delivered its ruling. The Court disagreed with the Advocate General's opinion, which emphasised member states' sovereign competence to regulate nationality acquisition. The Court found that the transactional nature of Malta's programme breaches EU law. Malta was found to have breached Article 4(3) of the TEU and Article 20 TFEU, as the scheme risked undermining the status of EU citizenship, which must remain tied to a genuine national bond.

This ruling signals a significant tightening of the regulatory environment for citizenship by investment in Europe. Future programmes must incorporate a substantive genuine connection to the islands to remain viable within the EU framework.