A Complete Guide To Malta Citizenship By Investment
Malta is an ideal country to call a second home because it is located in the heart of the beautiful Mediterranean Sea. It can boast both a natural beauty and amazing climate, alongside one of the most up-to-date programs to achieve success in the business world. It is also a member of the European Union, with a stable government, a rising economy and some of the world’s most sound financial institutions. Many countries have recently introduced citizenship-by-investment programs. As one of these countries, Malta makes it easy for potential investors to reside and work in the country legally.
As a result, Malta’s new citizenship-by-investment program 2021 is available to international investors looking to move, invest or do business in Europe while gaining a second citizenship.
Table Of Contents
Citizenship-by-Investment In Malta
Investment Citizenship Malta is a joint investment program in Europe, owing to its long-term benefits to investors. The Maltese government created it to make foreign investment and business expertise more accessible in the country.
After the limit of 1,800 applications was reached, the previous citizenship-by-investment program was officially closed. Following that, the latest program was launched in November 2020. This new program provides a safe EU relocation path with a quick and painless residency application.
Note: The old Malta investor program, also known as the Malta Citizenship by Investment Program, has been permanently canceled.
His latest initiative, Malta citizenship by naturalization for outstanding services, provides a certificate of naturalization to foreign individuals and their families who contribute to the country’s economic growth. Furthermore, in order to be considered for the program, an investor must make a minimum contribution. In addition, the individual must show proof of his or her 36-month stay in the country.
According to the new rules, this citizenship program would only be able to grant citizenship to a maximum of 400 people per year. It will also be limited to 1,500 applicants after they have been given citizenship.
Eligibility For Malta Citizenship-by-Investment
The Community Malta Agency governs Malta Citizenship by Investment. The main applicant must meet the following eligibility requirements, according to this federal government department.
1) The main applicant must be at least 18 years old.
2) A minimum investment of €600,000 if you have lived in Malta for 36 months or €750,000 if you have lived there for 12 months.
3) Purchase a residential property in Malta worth at least €700,000 and keep it for at least five years. Renting a residence with a rental value of €16,000 per year is also an option. The person is not allowed to sublet or sell this property during these five years.
4) Make a €10,000 donation to any Community Malta Agency-approved organization. You may also contribute to a registered non-governmental organization or society that is involved in sports, culture, science, philanthropy, animal welfare or culture.
5) To qualify for citizenship, you must have a valid residency card. When a person buys real estate, he or she is given an e-ID card, which is a Malta identity document.
6) All candidates, as well as their immediate family members (if applicable), must be in good health. Owing to the fact that this initiative attracts high-net-worth foreign investors, applicants will be subjected to a due-diligence review. We will return to this subject in a later section of this article.
Advantages of Malta Citizenship-by-Investment Program
Working or Studying In Malta
The program grants the investor and his family the right to live, work or research in the EU. Furthermore, it also provides lifelong family stability. Your children will have the same access to Maltese public schools and universities as Maltese residents. Students can attend state schools for free, including transportation and books.
The University of Malta is a government-funded institution that is open to all Maltese citizens. Malta is one of the EU’s fastest-growing economies, and you will have the ability to start a business once you have obtained citizenship.
All European Union benefits are available to Maltese citizens. Furthermore, you and your family are not required to obtain a visa to visit the United States or Canada. You can also fly to the Middle East, Africa, Asia, and the majority of North, Central, and South American countries. Furthermore, you can travel to 26 Schengen Area countries. In practice, you won’t need a passport or go through customs.
Quality of Life in Malta and Healthcare
Malta is, without a doubt, a wonderful country. Like the locals, your family will enjoy clean air, property rights and freedom of expression. Furthermore, as one of Europe’s most popular vacation destinations, there are numerous tourist attractions. It also has cutting-edge technology, which includes internet access and a stable banking system.
This country has a world-class healthcare system that is ranked in the top five by the World Health Organization. Furthermore, it is supported by health benefits and taxes. Hospitalization, medications, pregnancy, childbirth and specialist therapies are all provided by health insurance.
Details of New Malta Citizenship-by-Investment Program
The new Malta Citizenship-by-Investment Program leads to residency and a passport in Malta, which is an EU member-state. However, all applications for the program are thoroughly scrutinized, and unless the authorities are OK with the background of applicants, applications are not forwarded to the next step. As a result, each applicant must meet some criteria in move through the program successful and gain citizenship.
Investment Requirements for Malta Citizenship-by-Investment Program
Any sum between €700,000 and €1.46 million is a qualifying investment for the Maltese citizenship program. A comprehensive structure of the investment criteria is also given below.
Option 1: Contribution
Anyone applying for Maltese citizenship-by-investment must contribute to the National Development and Social Fund, which is managed by a board of trustees and organized by the government. These funds support programs in public health, education, job creation and social improvement, among other things. The main applicant must contribute €600,000 if he or she has lived in the country for 36 months or €750,000 if in the country for 12 months. This donation is non-refundable. For each additional dependent, an additional €50,000 is needed.
Option 2: Fund
A donation of at least €10,000 to a registered non-governmental organization or society is needed in addition to the contribution. It has to be a non-profit organization.
Option 3: Real Estate
It is mandatory to purchase or lease a real estate property with a minimum valuation of €700,000 or to pay a minimum annual rent of €16,000 per year. Furthermore, from the date of the certificate of citizenship, the individual must keep the purchased or leased property for at least five years.
The person must meet the residency requirements in the same way as they meet the investment requirements. According to the new rules, the applicant and all dependents must reside in Malta for at least one year. The minimum investment bar for 12 months is €750,000; there is a new choice for those who want to save money.
If an applicant can demonstrate three years of residency in Malta, he can gain Maltese citizenship for only €600,000, saving €150,000 in the process.
Furthermore, you may need to file an application with your licensed agent’s assistance to obtain citizenship. Your appointment will be set within six months of the acceptance after it has been cleared by the Community Malta Agency and the Maltese police. Finally, you will receive your e-ID card, which will serve as proof of your legal status in the country.
Application Timeline of Malta Citizenship Program
The application for the Malta investment must be made on the specified reports and include all necessary fees and documents. Since the application is subjected to stringent due-diligence procedures, it will be rejected if any false information is discovered. This is the application timeline for the program:
Power of Attorney to a Licensed Agent
The applicant appoints a power of attorney to serve as his legal representative. He continues to work until the operation is completed.
The agent then conducts tier 1 due diligence and submits the application. Following that, the Community Malta Agency and the police execute their due diligence. If both approve the application, the process moves forward.
A citizenship eligibility form will now be submitted in order to obtain a resident permit. The agent is also responsible for submitting the applicant’s birth and marriage certificates to the Public Registry and Passport Office.
Tier 2 due diligence is done to ensure that the application is accurate and complete. To record any further details, the applicant may be asked to submit a few more documents.
The organization also conducts Tier 3 and Tier 4 due diligence, in which the forms are submitted to the Minister, who determines if the applicant is eligible for the program.
The attorney/agent submits the Malta citizenship application to the agency based on the applicant’s level of commitment. Similarly, the due diligence is revised, and the application is sent to the Minister, who will determine whether or not the applicant is eligible for citizenship.
The applicant is invited to Malta to take the oath of allegiance if he meets the investment and residency requirements.
The applicant would then be issued a certificate of naturalization as well as a Maltese passport.
Note: For the next five years after the applicant has obtained citizenship, the Community Malta Agency conducts continuous surveillance.
The Community Malta Agency conducts due diligence to ensure validation after obtaining the Eligibility Payment Request Voucher (EPRV) a few days later.
This mechanism has been expanded in the current Malta Citizenship-by-Investment Program to ensure that capital is legally inherited. Each application is subjected to a rigorous due-diligence process, which includes extensive background checks. In addition, the applicant must have relevant documentation such as criminal police reports, evidence of funds and primary wealth.
Malta has the highest level of due diligence, rejecting approximately 23% of all applications received. Each application undergoes four levels of due diligence, and even the tiniest suspicion on the part of the agency will result in the application being rejected.
The methods, however, necessitate the payment of the following due-diligence fees:
Main applicant: €15,000
Sponsors or benefactors: €15,000
Aside from that, there are administrative costs associated with all eligibility applications. Applicants must pay a €1,000 administrative fee. This fee is exclusive of other taxes.
Tax Implications of Citizenship in Malta
There are no tax implications if you obtain European citizenship through an investment program in Malta. Individuals and families can not adjust their tax treatment simply by being Maltese citizens; they must still take up the tax residence.
Even if an individual relocates to Malta, he can keep his non-domicile status and benefit from a favorable tax situation. Furthermore, he or she is only required to pay tax on income earned in the country. Furthermore, international income and other capital gains earned outside of Malta will not be taxed. Since the foreign source of income is held in bank accounts outside the region, this is the case.
Moreover, there are no taxes on:
- Estate duty
- Net worth or wealth taxes
- Municipal taxes, rates or real estate taxes
- Inheritance or death
- An extensive network of double taxation agreements.
- Malta has double taxation arrangements with around 60 countries around the world. Furthermore, no taxes will be levied if a resident sells his property after five years of ownership and use as his sole and ordinary residence. If it is sold before the three-year period has passed, a property tax of 12% of the sale price would be charged. Despite the fact that Malta has a 35% corporate tax, non-resident or non-domiciled business people or company owners are given special tax breaks.
Dual Citizenship in Malta
Isn’t it fantastic that you can now become a citizen in two countries at the same time for business and tax purposes? Many countries, including the United States, France, Germany, Greece, Switzerland and Malta, offer dual citizenship, which gives you more freedom and control over your business. Furthermore, the Citizenship Act of Malta expressly states that dual citizenship is allowed in Malta. It declares that a Maltese resident may obtain and maintain a foreign citizenship/s in addition to his or her Maltese citizenship as of Feb. 10, 2000.
Although Malta has no restrictions on issuing a Maltese passport, your current country of origin can limit your ability to obtain a second Maltese passport. Apart from that, in order to obtain dual citizenship, the applicant must follow a specific procedure.
Holding a Maltese passport does grant you the freedom to own a business and a company. It also helps you to fly to some of the world’s most influential countries without having to worry about obtaining a visa. The Maltese citizenship-by-investment program assists a person in obtaining a Maltese passport, allowing him to travel to several countries worldwide without requiring a visa!
People with Malta passports can travel to European countries such as Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom because it allows them to work in Europe.
It also has the advantage of getting access to the United States easily through the visa-waiver program.
Apart from that, Malta became a member of the Schengen Area in 2007 after signing the Schengen Agreement, which abolished all internal borders between member states. As a result, citizens of Malta are free to travel to any of the 26 Schengen visa countries without having to go through border checks.
Alternatives to Malta Citizenship-by-Investment Program
Many countries have created immigrant investor programs in recent years to draw international business people. As a result, these countries’ economies are booming, as is the skilled development of their people. Countries such as Portugal, Greece and Spain offer a visas for immigrant investors, which has aided their overall welfare and development.
Individuals may obtain a golden visa, which is a permanent resident visa granted by these countries. To get this visa, a person must invest in the issuing country’s economy by purchasing real estate or making a financial contribution to the issuing country.
1) Spain Golden Visa
Investment in the Spanish economy will get you a Golden Visa for Spain. This visa, also known as the Spain investor visa, is available to people who invest in real estate or any Spanish country.
Who is Eligible for the Spain Golden Visa Program?
It is open to those who purchase property in Spain worth at least €500,000 (or a group of properties worth at least €500,000). Other options are:
- At least €2 million in public debt investment in Spain.
- Invest in a company or business that hires Spanish citizens.
Advantages Of Spain Golden Visa
- Legally reside and work in Spain.
- Bring your spouse and children with you.
- Get the right to use government services such as healthcare, education, and defense.
2) Portugal Golden Visa
The Golden Visa scheme in Portugal is a way to get permanent residency in the country by investing in real estate. The program began in 2012 to attract foreign investors and business people to Portugal and promote the country’s economy. Since the program’s inception in May 2010, over 20,000 people have invested a total of over 5.2 billion euros.
Requirements For Portugal Golden Visa Program
- A €500,000 investment is needed.
- You may make money by renting a commercial or residential property.
- For properties in need of renovation, a minimum of €350,000 is needed.
Advantages of Portugal Golden Visa Program
- You’ll have a European passport in 5 years.
- Visa-free travel. You can travel to 26 EU countries and 183 other countries.
- Benefits of health and education.
3) Greece Golden Visa
If you want to live in Greece permanently, the Greece Golden Visa is the best choice. Non-EU nationals can invest in real estate in Greece and apply for residency under this program, which began in 2013.
Requirements for Greece Golden Visa
- Invest a minimum of €250,000, plus any taxes that might apply.
- A hotel or furnished residential lease arrangement for 10 years.
- A minimum capital contribution of €400,000 to a Greek-registered or established company.
Advantages of Greece Golden Visa
- The investment rate is lower than in other EU countries.
- The Schengen Area is accessible without a visa.
- Greek education and healthcare are available.
Finally, when a growing number of high-net-worth individuals consider their immigration options and widen their business horizons, Malta provides excellent business prospects while maintaining a high quality of life.
As a result, if you’re looking to relocate for work, Malta might be your ideal island!