Malta Citizenship by Investment Program 2021: The Ultimate Guide


Updated: February 3, 2021

Situated in the center of the wonderful Mediterranean sea, Malta is an ideal country to be called a second home. Not only because of the beauty and climatic conditions but also due to the latest programs that let an individual flourish in the business world. 

Moreover, it is a member of the European Union and enjoys a stable political climate, a growing economy, and home to some of the world’s soundest banks. 

Lately, many countries have come up with citizenship by investment programs. As one of those countries, Malta makes it convenient for potential investors to reside and work in the country legally.

Therefore, for foreign investors seeking to relocate, invest, or do business in Europe while attaining second citizenship, Malta offers the latest Citizenship by Investment Program 2021.

For confidential support, get in contact with our team.

So, let’s take a journey to see what this program entails and how it will benefit us!

Citizenship by Investment Malta (MIIP)

Citizenship by Investment Malta is a popular investment program in Europe, primarily as it has benefitted the investors in the long run. The Maltese Government introduced it to facilitate foreign investment and business expertise into the country. 

The previous citizenship by investment program was officially closed after it reached the cap of 1800 applications. It was after then that the new program was introduced in November 2020. This new program offers a secure EU relocation route with a fast and straightforward residency acquisition. 

Note: The old Malta Investor Programme, i.e., The Malta Citizenship by Investment Programme, has been annulled permanently.

This new program, Malta citizenship by naturalization for exceptional services, grants the foreign individual and their families citizenship by a Certificate of Naturalization by contributing to the country’s economic development. Besides, there is a minimum amount of investment that an investor must make to be eligible for the program. Also, the person has to prove his 36 months of residency in the country. 

According to the new regulations, this citizenship program will be limited to providing citizenship to a maximum of 400 successful applicants per year. Also, it will be capped after 1500 applicants have been granted citizenship. 

Eligibility for Malta Citizenship by Investment

Community Malta Agency controls Malta Citizenship by Investment. According to this federal government agency, the principal applicant must satisfy the following eligibility criteria.

  • The principal applicant has to be 18 years old or more.
  • An investment of at least €600,000 if you have completed 36 months of residency in Malta or €750,000 after residing in the country for 12 months. 
  • Buy a residential property worth at least €700,000 in Malta, and that must be held for a minimum of five years. An alternative to this is to lease a residence with a rental value of €16,000 annually. 

Note: The person cannot sublet or sell this property during these five years. 

  • Donate an amount of €10,000 to any organization approved by the Community Malta Agency. You can also donate to a registered sport, cultural, scientific, philanthropic, animal welfare, or cultural non-governmental organization or society.
  •  A valid residence card to apply for citizenship. On purchasing real estate property, an individual is issued a Malta identity document called an e-ID card.
  • All applicants and their family members (if applying for them) must be in good health.

Since this program attracts wealthy foreign investors of high standards, applicants will be subject to due diligence. However, we will discuss this part in the later session of the article.

Benefits of the Malta IIP for you and your family

Malta (IIP) offers many benefits in exchange for an investment that contributes to the nation’s economy.

  • Work or Study in EU countries

It grants the investor and his family the right to live, work, or study throughout the EU. Furthermore, it also provides lifelong family security. Your children will get access to the Maltese public schools and universities just like other Maltese residents. State schools, too, are free for the students, including transportation and books.

The University of Malta is publicly funded and is free for Maltese citizens.

Malta is one of the rapidly-growing economies of the EU, and you have an opportunity to establish your business after you get citizenship. 

  • Visa-Free Travel to 180 Countries, Including USA

A Maltese citizen can avail of all the European Union benefits. Moreover, you and your family can access the USA and Canada without a Visa. In addition, you can travel to the Middle East, Africa, Asia, and most countries in North, Central, and South America.

Besides, you can visit 26 Schengen visa countries without border checks. In fact, you will require no passport or customs checks.

  • Quality Life for Family

Malta is indeed a wonderful country. Your family will enjoy the clean air, property rights, and freedom of speech, just like the locals. Moreover, there are many tourist places as it is one of the most popular holiday destinations among Europeans. Also, it has a modern infrastructure, including internet services and secure banking. 

  • Access to the Maltese Healthcare System

This country has an excellent healthcare system globally, ranked among the top 5 by WHO. Besides, it is funded by health insurance and taxation. Medical services covered under health insurance are hospitalization, prescriptions, pregnancy, childbirth, and specialists’ treatments.

New Malta Citizenship by Investment Program 2020

The New Malta Citizenship by Investment Program leads you to the Malta (EU) residency and passport. However, all the applications sent for the program are thoroughly examined, and unless the authorities are satisfied, the application is not sent for further procedure.

And so, there are a few requirements that each applicant has to satisfy in order to be eligible for the program.

Investment Requirements

Qualifying investments for the Maltese Citizenship program is any amount between €700,000 – €1,460,000. Moreover, below is a detailed structure of the investment requirements.

Investment 1: Contribution

Any individual or his family member applying for Maltese citizenship by investment is supposed to contribute to the National Development and Social Fund organized by the Government and run by a board of trustees. These funds finance projects like public health, education, job formulation, social improvement, etc. 

The principal applicant has to contribute €600,000 if he has proved his residency for 36 months in the country or €750,000 on 12 months residency. Not to mention, this contribution is non-refundable.

Note: An additional amount of €50,000 is required for each additional dependent.

Investment 2: Fund

In addition to the contribution, the person is required to make a donation of at least €10,000 to a registered non-governmental organization or society. It must be a charitable organization. 

Investment 3: Real Estate

Purchasing a real estate property whose minimum value is €700,000 or lease a property for a minimum yearly rent of €16,000 is compulsory. Moreover, the person has to retain the purchased or rented property for at least five years from the date of the certificate of citizenship

Residency Requirements

Just like the investment requirements, the individual has to qualify for the residency requirements as well. According to the new regulations, it’s mandatory for the applicant and all the dependents to hold a Maltese residency for at least one year. As for 12 months, the minimum investment bar is €750,000; there is a new option if a person wishes to save some money.

If an applicant gives evidence of three years of his residency in Malta, he can obtain his Maltese citizenship by investing just €600,000, consequently saving €150,000.

Moreover, to attain residency, you will have to file an application with your licensed agent’s help. Once it is cleared by the Community Malta Agency and the Maltese police, your appointment will be fixed within six months of the approval. Lastly, you will be issued your e-ID card, which will prove your residency in the country.

Get Golden Visa: Who We Are And How We Can Help You

Get Golden Visa is a full-service investment immigration agency.  We provide end-to-end solutions on residence and citizenship by investment programs in numerous countries worldwide.

We work with clients from all around the world, interested in obtaining Maltese citizenship or residency.

Contact us and talk to one of our experienced team members to help you with any and all your questions.

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    Malta Citizenship Scheme Application Timeline

    Application for the Malta investment must be made on the prescribed reports and be accompanied by the relevant fees and documents. Since the application is analyzed by high due diligence processes, it will be declined if it detects any false information. 

    Here is the scheme application timeline.

    • Power of Attorney to a Licensed Agent

    The applicant hires a power of attorney that acts as his lawful agent. He remains in function till the end of the procedure.

    • Tier 1

    The agent then performs due diligence, i.e., tier 1, and submits the application. Post that, due diligence is further conducted by the Community Malta Agency and the Police. If the application obtains clearance by both, the process continues.

    • Citizenship Eligibility

    Now, a form for citizenship eligibility will be submitted for a residence permit. Along with that, the agent has to submit the applicant’s birth and marriage certificates to Public Registry and Passport Office. 

    • Tier 2

    A tier 2 due diligence is performed to ensure the correctness and completeness of the application. The applicant may be asked for a few more documents to record any additional information. 

    A Tier 3 and Tier 4 due diligence is also conducted by the agency, and the forms are then presented to the Minister, who informs whether the applicant is eligible for the program or not.

    Depending on the applicant’s level of contribution, the attorney/agent presents the Malta Citizenship Application to the agency. Likewise, the due diligence is updated; the application is sent to the Minister to decide whether citizenship can be granted to the applicant or not.

    Provided that the applicant has satisfied the investment and residency requirements, he is invited to Malta to take the Oath of Allegiance.

    Ultimately, the applicant will receive the Certificate of Naturalisation and a Maltese Passport.

    Note: After the applicant has attained citizenship, the Community Malta Agency does continuous monitoring for five years.

    Due Diligence

    After a few days of receiving the Eligibility Payment Request Voucher (EPRV), the Community Malta Agency then performs due diligence to ensure validation.

    This process in the new Malta Citizenship by Investment Program has been strengthened to ensure that capital has been inherited legally. Each application undergoes a stringent due diligence process, including thorough background checks. Besides, the applicant also has to provide valid documents like criminal police records, proof of the source of funds, and principal wealth.

    Malta has the highest standard of diligence and has rejected around 23% of the total applications received. Four-tier due diligence is conducted on each application, and even the smallest suspicion from the agency’s end can decline the application.

    However, the procedures require the payment of the following Due Diligence fees;

    €15,000 Main Applicant
    €10,000 Dependents
    €15,000 Sponsors/Benefactors

    Apart from that, administrative fees with all eligibility applications are also charged. 

    Administrative fee per applicant: One Thousand Euro €1,000 (This fee is exclusive of other taxes).

    Tax Consequences of Citizenship in Malta

    If you receive your European citizenship by investment program in Malta, there will be no tax consequences. Becoming a Maltese citizen alone doesn’t change an individual or family’s tax treatment unless they take up the tax residence. Or, in simpler words, unless he is a domicile of Malta.

    Even if a person relocates to Malta, he can retain the non-domicile status and experience an extremely advantageous tax exposure. Besides, he/she is only required to pay tax on the income they earn in the country. Furthermore, you will not be taxable on foreign income or other capital gains arising outside Malta. This is so because the foreign source of income is kept in bank accounts outside the country. 

    In addition, Malta poses no taxes on

    • inheritance or death.
    • an extensive network of double taxation agreements,
    • estate duty
    • net worth or wealth taxes,
    • municipal taxes, rates, or real estate taxes.

    Malta is involved in double taxation treaties with about 60 countries globally. 

    Moreover, if a citizen decides to sell his property after holding it for five years and using it for sole and ordinary residence, no taxes will be imposed. However, if it is sold before the lapse of three years, a property tax of 12% of the selling price will be exacted. 

    Although Malta has claimed a 35% corporate tax, special tax concessions are applied to non-resident or non-domiciled business people or company owners.

    Dual Citizenship Malta

    Isn’t it great that you can now become a resident of two different countries simultaneously for the purpose of business and tax relief? Many countries like the USA, France, Germany, Greece, Switzerland, Malta, and many more provide dual citizenship which means, you get more independence and control to do business. 

    Furthermore, Malta’s Citizenship Act mentions explicitly that Malta dual citizenship is permitted. Stating,

    As of 10th February 2000, a Maltese resident can acquire and retain a foreign citizenship/s along with his/her Maltese citizenship.

    While Malta poses no restriction on providing a Maltese passport, your current country of origin might restrict you from holding a second Maltese passport. 

    Apart from that, the individual has to follow a particular procedure in order to receive dual citizenship.

    Visa-free destination with the IIP Malta Program

    Indeed, holding a Maltese passport gives you the liberty of business and company ownership. It also allows you to travel without the hassles of arranging a visa to some of the world’s important countries.

    The Malta Citizenship by Investment program helps an individual acquire a Maltese passport, making him eligible to travel to many countries globally without a Visa! 

    Since it also offers the freedom to work in Europe, people with Malta passports can also to move to European countries like 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 (UK).

    It also offers the benefit of wavering United States visas. 

    Apart from that, Malta joined the Schengen Area in 2007 after signing the Schengen agreement, which removed all the member states’ internal borders. Therefore, Malta grants freedom to citizens to travel to all the 26 Schengen visa countries without border checks.

    Alternatives to Malta Citizenship by Investment

    In recent years, a lot of countries have designed immigrant investor programs to attract foreign businessmen. As a result, these nations are witnessing massive growth in their economies and the individual’s professional growth. 

    Like the ‘Citizenship by Investment Program Malta’ has contributed to the nation’s welfare and advancement, countries like Portugal, Greece, and Spain offer a similar scheme. 

    These countries provide a golden visa, which is a permanent residency visa issued to individuals. To get this visa, an individual has to invest in the country’s economy by purchasing property or donating a certain sum of money to the issuing country.

    Portugal Golden Visa

    The Portugal Golden Visa program is a route to secure residency in the country by investing in real estate. The program was launched in 2012 to encourage foreign investors and businessmen to relocate to Portugal and glorify the country’s economy. As of May 2020, there has been an investment of over 5.2 billion euros from over 20,000 persons since the program’s enunciation. 

    Requirements:

    • An investment of €500,000.
    • You can rent a commercial or residential property for income.
    • The minimum amount required for properties in need of renovation is €350,000.

    Benefits

    • Get a European passport in 5 years.
    • Travel to 26 EU countries and 183 countries without a Visa.
    • Health and education benefits.

    Spain Golden Visa

    Invest in the Spanish economy and obtain your Spain Golden Visa. This visa is available for people who invest in real estate or any Spanish country and is also known as the Spain investor visa. 

    Eligibility

    • Purchase real estate in Spain worth at least €500,000 (or many properties whose total value is €500,000)
    • Investment at least €2,000,000 in the Spanish public debt.
    • Invest in a business or company that employs Spanish citizens.

    Benefits

    • Live and work in Spain lawfully.
    • Bring Spouse and children along.
    • Right to access public services like healthcare, education, and security.

    Greece Golden Visa

    If you wish to obtain permanent Greek residency, the Greece Golden Visa is the safest route. Under this program launched in 2013, non-EU nationals can invest in Greece real estate and apply for residency.

    Requirements

    • Invest a minimum value of EUR 250,000 along with the applicable taxes.
    • A 10-year lease agreement for hotel or furnished residential accommodation.
    • A capital contribution of at least EUR 400,000 to a company registered or established in Greece.

    Benefits

    • Lower investment rate than other EU countries.
    • Visa-free travel to the Schengen Zone.
    • Access to Greek education and healthcare

    Lastly, with an increasing number of high-net-worth individuals evaluating their options to invest in immigration and expanding their business horizons, Malta offers excellent business opportunities with high quality of life. 

    Therefore, if you are planning to relocate for business, Malta can be your lucky island!

    Need more help regarding the program, feel free to contact us.

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