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Malta offers attractive pathways for individuals and families seeking citizenship or residence through investment. Below is a comprehensive overview of the available programs and associated real estate considerations.
1. Malta Citizenship by Naturalization for Exceptional Services by Direct Investment
Under the Granting of Citizenship for Exceptional Services by Direct Investment Regulations (S.L. 188.06), Malta provides a route to citizenship for foreign individuals and their families who contribute to the nation's economic development. This process involves a stringent due diligence procedure and offers the following benefits and requirements:
Benefits:
Global Mobility: Visa-free or visa-on-arrival access to approximately 190 destinations.
Business Opportunities: Access to a reputable financial center and a prime jurisdiction for international business.
Family Inclusion: Ability to include a spouse, children, parents, and grandparents in the application.
Educational Access: Availability of excellent international schools and reduced fees or free education in some EU countries.
High Due Diligence Standards: Ensures a secure and vetted application process.
Desirable Living Environment: Strategically located with excellent air links, making it an attractive place to live or own a second home.
Requirements:
Age: Applicants must be at least 18 years old.
Contribution: A minimum of EUR 600,000 for a 36-month residence period or EUR 750,000 for a 12-month period.
Real Estate Investment: Purchase property valued at least EUR 700,000 or lease property with a minimum annual rent of EUR 16,000, both to be held for five years. Subletting during this period is prohibited.
Donation: At least EUR 10,000 to a registered non-governmental organization in Malta.
Residency: Legal residence in Malta for the duration of the chosen residence period.
Each application undergoes a comprehensive four-tier due diligence assessment to ensure integrity and compliance.
2. Malta Permanent Residence Programme (MPRP)
The MPRP grants permanent residence rights to non-EU nationals and their families through investment. This program is also known as Malta's golden visa and offers the following benefits and requirements:
Benefits:
Permanent Residency: Indefinite residency rights in Malta.
Family Inclusion: Ability to include spouse, children, and dependent parents and grandparents.
Schengen Area Access: Visa-free travel within the Schengen Area for 90 days within a 180-day period.
Tax Efficiency: No tax on worldwide income for non-domiciled residents.
High Standard of Living: Safe environment, excellent healthcare, and quality education.
Requirements:
Real Estate Investment: Either purchase property valued at least EUR 300,000 (EUR 350,000 in certain areas) or lease property with a minimum annual rent of EUR 10,000 (EUR 12,000 in certain areas), both to be held for a minimum of five years.
Government Contribution: EUR 28,000 if purchasing property or EUR 58,000 if leasing.
Donation: EUR 2,000 to a local philanthropic, cultural, sport, scientific, animal welfare, or artistic organization.
Administrative Fee: A non-refundable fee of EUR 40,000.
Financial Assets: Proof of at least EUR 500,000 in capital, with EUR 150,000 in financial assets.
Applicants must maintain the qualifying property and financial requirements for a minimum of five years.
3. Real Estate Considerations
Investing in Maltese real estate is a key component of both programs. The property market in Malta offers robust returns and favorable tax conditions:
Capital Appreciation: Recent years have seen returns on capital investment exceeding 5%.
Rental Yield: Average rental income yields approximately 3.5%.
Taxation: Rental income is taxed at a flat rate of 15%.
No Annual Property Tax: Malta does not impose annual property taxes.
Transaction Costs: Expect additional expenses such as a 5% stamp duty, approximately 1.5% notary fees, and around EUR 1,000 for architect fees.
It's important to note that properties under leasehold agreements may incur ground rent, and condominium fees apply to apartments managed by residence committees or third-party management companies.
**This article is part of a series of articles in respect to the most attractive migration programs:
*DISCLAIMER: This article and its publication are intended to provide a brief introduction and act as a general guide. This is provided for information purposes only and cannot be utilized as a substitute for professional advice. This document does not represent a legal opinion and one must not rely on it without receiving independent advice based on the particular facts of its own case. No responsibility is accepted by the author or the publishers for any loss suffered from acting or refraining from acting based on the contents of this publication.
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Please get in contact with our Head of Business Development:
Mrs Daniella May / Head of Business Development
Tel.: + 357 7000 2 5555 / + 357 22 87 57 55
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