Malta's Residence Programs

Malta has launched a new residence program in addition to its well known and popular Global Residence Program.

The new Residence and Visa program, launched in May last year (2016), is aimed at investors looking for a second residence through investment but are not necessarily looking to physically reside in Malta.

The original residence program, the Global Residence Program, on the other hand, caters to people who may wish to move to Malta and live there. Each of these programs are attractive to investors, it just depends on what they are looking to achieve. 

Below, we will go into more details of the two programs.  

 

Malta Residence and Visa Program

The Maltese Residence and Visa Program was officially launched in 2016 and offers an attractive route to residence status in Malta.

The investment is a combination of property and Government bonds and has no physical stay or language requirements are necessary. 

Malta citizenship and residence through investment

Global Residence Program

The Maltese Global Residence Program is focused towards non EU foreigners who are looking to obtain a Maltese residence and wish to potentially reside in Malta.

The required investment is either through the purchase or rental of real estate and physical residence is required. 
 

Malta citizenship
 

In 2016, the Government of Malta launched its new Residence and Visa Program,  offering Maltese residence in only 3 to 4 months. 

The program is aimed at non EU foreigners who are looking to obtain a Maltese residence through investing into Malta.

The Residence and Visa Program is attractive to investors and their families who are looking to acquire EU residence but are not looking to physically immigrate and live in Malta.  

In comparison to other countries' programs such as Portugal or Spain's Golden Visa programs, Malta offers a much simpler and faster route to residence. While Portugal takes around 8 - 10 months to acquire residence, due the recent delays, Malta only takes 3 - 4 months. Malta has also extensive experience in offering residence due to the past success of its original residence program as well as the ongoing demand and success of its exclusive Individual Investor Program for Citizenship.  

The goal is to further attract foreign investment from wealthy business owners and entrepreneurs and bring foreign capital into the country. The legislative framework provides an opportunity for investors looking to obtain a European Union residence with a straight forward application process and minimal requirements.

Benefits of Maltese residence include visa free travel to all the Schengen countries. 

Process and Requirements

 

Investment requirements

Foreign investors (and their families) who wish to apply for Maltese residence must meet the following investment requirements: 

Property Purchase Or Rental:

In order to qualify for the residence program, applicants are required to purchase immovable property with a minimum value depending on where they purchase. If the property is in Central and Northern Malta the minimum is EUR 320 000 and if in Gozo or the South, then the property value must be at least EUR 270 000.

Property Rental

Applicants can also rent a property provided the minimum rental is EUR 12 000 per annum if the property is in Northern or Central Malta, and EUR 10 000 per annum if in the South or Gozo. 

Either way, the property must be held for 5 years and cannot be rented out during this time. 

Government Bonds

Applicants are required, in addition to the property, to hold a qualifying investment in Government bonds of EUR 250 000 to be held for a 5 year period. After this, the funds are returned to the investor. 

Financial Contribution / Government Fees

A contribution of EUR 30 000 is payable by the main applicant.

Non refundable due diligence fees are EUR 5 500, which are deductible from the above financial contribution. 

TAX IN MALTA

Acquiring residence in Malta through the Malta Residence and Visa Program does not in itself trigger tax residence. If one is domiciled and a resident in Malta, one would be liable to pay tax on one's worldwide income.

Income tax is taxed progressively from 35%. Investors who are resident, but not domiciled in Malta, pay tax on income derived in Malta, as well as on income that is remitted to Malta arising out of the country. This excludes capital gains tax. 

Malta has a double taxation agreement with South Africa.

Application Requirements

Due diligence criteria is very strict and a clean criminal record is required. 

Applicants and their families who acquire Maltese residence must have made provisions for their own health insurance. They will not be entitled to free state health care. 

The applicant must have an annual income of no less than EUR 100 00 arising outside of Malta. Alternatively, they must prove capital of at least EUR 500 000 in their possession.


Additional Notes

The property investment requirement is slightly higher than that of the Malta Global Residence Program, however, therefore there is no annual tax payable nor minimum stay requirements. 

 

Maltese Residence Vs Citizenship

The Maltese Residence Visa and Global Residence programs only offer investors the benefits of a Maltese residency permit. This is not the same as holding an EU citizenship or Maltese passport.

Please read more about EU Residence Vs EU Citizenship on our blog / news page for further details.

 

BENEFITS AND TRAVEL ACCESS

A Maltese residence offers the investor and his family the right to live, study and work anywhere in Malta. Residence also allows the investor to spend a maximum of 90 out of every 180 days in any of the Schengen zone countries.   

Malta is an attractive destination for sailing and scuba diving. 

Malta is an attractive destination for sailing and scuba diving. 

The Malta Global Residence Program was launched by the Government of Malta in October 2012 in order to offer foreign investors the opportunity to obtain residence in Malta and to enable foreign investment into Malta.  

The program is focussed towards non EU foreigners who are looking to obtain a Maltese residence. The program requires investors to either purchase or secure a fixed annual rental of a property in order to acquire residence in Malta.

The goal is to further attract foreign investment from wealthy business owners and entrepreneurs and bring foreign capital into the country. The legislative framework provides an opportunity for investors looking to obtain a European Union residence with a straight forward application process and minimal requirements.

The Malta Global Residence Program requires the investor to make an economic contribution to the country. Following this, and subject to thorough due diligence, background and application procedure checks, the applicants and their families are granted Maltese residence. 

Process and Requirements

Investment requirements

Foreign investors (and their families) who wish to apply for Maltese residence must meet one the following two investment requirements: 

Property Purchase:

In order to qualify for the residence program, applicants are required to purchase of immovable property with a minimum value depending on where they purchase. If the property is in Central and Northern Malta the minimum is EUR 275 000 and if in Gozo or the South, then the property value must be at least EUR 220 000.

Property Rental

Applicants can also rent a property provided the minimum rental is EUR 9600 per annum (EUR 800 per month) if the property is in Northern or Central Malta, and EUR 8750 per annum (EUR 730 per month) if in the South or Gozo. 

 

Benefits and Travel Access

A Maltese residence offers the investor and his family the right to live, study and work anywhere in Malta. Residence also allows the investor to spend a maximum of 90 out of every 180 days in any of the Schengen zone countries.   

 

Application Requirements

Registration Fee payable to the Tax Department

(non - refundable) 

A non-refundable administration fee of EUR 5500 must be paid on submission of the application. Following this, and subject to approval, the applicant must then pay a contribution of EUR 30 000 (less the administration fee)

Minimum Tax Liability

EUR 15 000 annual (payable by 30th April annually) 

Conditions

Clean Criminal Record

Applicants and their families who acquire Maltese residence must have made provisions for their own health insurance. They will not be entitled to free state health care. 


Maltese Residence Vs Citizenship

The Maltese Residence Visa and Global Residence programs only offer investors the benefits of a Maltese residency permit. This is not the same as holding an EU citizenship or Maltese passport.

Please read more about EU Residence Vs EU Citizenship on our blog / news page for further details.

 

Contact us to find out more or apply for residence in Malta.

Or learn more about Why Malta is such a popular destination here.

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