Experts in the industry anticipated an update on Malta’s Malta Residency Visa Program (MRVP) for some time. A while ago, the Malta Residency Visa Agency (MRVA) confirmed the updates. Yet, the details of the changes were only speculations. Although people in the sector had a rough understanding of the possibilities, there was no official announcement.
Recently, MRVA published the changes in their final form. The name of the program is now the Malta Permanent Residence Programme (MPRP). Now that the update is concrete, investors may take action.
What Changed with the Update?
The previous format of the program had three basic criteria.
- Applicants could invest 250,000 Euros into government bonds. They could also channel the investment in other stocks or equities in the Malta Stock Exchange. This investment had to be held for five years.
- Applicants could buy a property as a form of investment. The minimum investment was 320,000 Euros. This amount was 270,000 Euros for South Malta and Gozo regions. Applicants could also rent a property. The minimum lease value was 12,000 Euros per year. In South Malta and Gozo, the minimum value went down to 10,000 Euros.
- Applicants had to donate 30,000 Euros to Malta. This amount was non-refundable. Also, 5,500 Euros of the total amount was paid as the government administrative fee.
The update to the program scraps the first method altogether. The second and third items continue in the new format. Yet, there are some alterations.
- Investors may still buy or rent a property as an investment method. The new minimum investment for South Malta and Gozo is 300,000 Euros. The amount for the rest of the country is 350,000 Euros. Lease value restrictions stay the same. Investors must hold the investments for at least five years.
- The new format requires higher non-refundable contribution fees. In the new scheme, investors who purchase property will contribute 28,000 Euros. Investors who chose rental will pay 58,000 Euros.
- The administrative fee of the new format is 40,000 Euros.
- The update also requires investors to donate 2,000 Euros to a “local, registered philanthropic, cultural, sport, scientific, animal welfare or artistic NGO registered with the Commissioner for Voluntary Organisations, or as otherwise approved by the Agency.”
Learn all about the program in our ultimate guide to Malta Citizenship by Investment.
Information on the Old Program
The MRVA informed the public about the statistics of the old program. The recently published document cleared a lot of questions. Here is the detailed information:
- The program generated a one-off injection of the financial capital of €29.98m net (2017-2019).
- In 2020 a further injection of €19m was registered.
- The effect of consumption expenditure by beneficiaries in various sectors of the economy generated circa €17.57m in 2019 alone.
- Total economic impact including both indirect and induced effects is estimated to be a value-added of circa €18m in 2019.
- The Programme generated human capital estimated at €5.9m in the knowledge economy and other high skills sectors in 2019…
- …and directly created 136 jobs (290 jobs when considering all multiplier effects). The jobs were predominantly in the finance and ICT sectors in 2019.
- As for real estate, whilst investment in this sector is important, the investment undertaken is relatively small in comparison to the entire market and the impact is estimated to be trivial especially during a time when the sector is booming. However, this investment would have helped boost the sector in an economic downturn.
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