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Her citizenship will remain unchanged.  However, if an EU citizen lives in Malta for more than 3 months, they need to take residency in Malta. Its a simple matter to do. I'll PM you a link on the following

1. An EU citizens legal rights - residency, working, students
2. what sort of residency is available ?
3. what do I need to apply for if I want to reside in Malta ?
4. do I need to apply for residency before coming to live in Malta ?
5. do I need an accountant to apply for residency ?
6. do I need health insurance ?
6.1 Do I qualify for public health cover, and if I do, what cover do I have ? Are prescriptions free ?
7. can I work in Malta ?
7.1 How much is income tax ?
7.2 How much are social security contributions ?
8. where do I apply for my residency certificate ?
9. where can I get the OR application form ?
10. where do I apply for my ID card ?
11. what documents do I need to apply for OR ?
12. can I vote in Malta ?
13. buying a property FAQ
14. renting a property FAQ
15. Importing a vehicle FAQ
16. What's the procedure for importing/exporting a pet ?
17. Can I use my driving licence in Malta ?
17.1 Applying for driving licence
18. Long term residency certificate

Thank you for your reply.  If our daughter stays in Malta for 3 months then returns to the uk for 1 week will she be able to come back to Malta for another 3 months in the same year.

yes, she remains a tourist - however, if she's in Malta for more than 6 months in a calendar year she needs to fill in a Maltese tax return ie you can be tax resident but not resident from an immigration point of view.

[Moderated: Please communicate by PM]