Malta
Citizenship-by-Investment
Welcome To Malta Citizenship By Investment
The Malta Citizenship By Investment Program (Malta CBI) was relaunched in November 2020 after initially closing upon reaching its application limit of 1,800. This program, established by the Maltese government, aims to attract potential investors seeking Maltese citizenship.
Malta has one of the fastest-growing economies in the European Union. The country enjoys economic and political stability, coupled with a colorful Mediterranean lifestyle.
The Republic of Malta is an archipelago consisting of three inhabited islands (Malta, Comino, and Gozo), as well as a number of uninhabited islands, known for their sunny weather and attractive beaches. Malta citizenship allows you to benefit from visa-free travel
About Malta
Malta, a mesmerizing island nation in the Mediterranean, boasts a deep-rooted history and dynamic culture, enhancing its appeal as a destination for obtaining citizenship through its Citizenship by Investment Program. Although it is one of the smallest countries globally, this charming archipelago has a significant allure that greatly adds to its popularity.
CAPITAL
Valletta
POPULATION
441,521
TOTAL AREA
316 km2
CURRENCY
Euro (€)
Geographical Location and Climate
Located strategically in the central Mediterranean between Sicily and North Africa, Malta offers warm weather with mild winters and hot, dry summers. During the summer months from June to August, temperatures typically range between 26°C to 30°C (79°F to 86°F), although they can occasionally climb higher, particularly in July and August. In contrast, winter from December to February sees milder weather with average temperatures hovering around 12°C to 16°C (54°F to 61°F).
Spring and autumn serve as transitional periods, offering pleasant temperatures ideal for those who prefer milder weather. Equipped with stunning beaches and iconic fortresses, It’s no surprise that many expats are packing their bags and obtaining Maltese dual citizenship.
Language and Culture
Famed for its multilingual population, Malta officially recognizes both Maltese and English as its primary languages. This bilingual approach allows accessible communication with international visitors and investors considering obtaining Maltese citizenship by investment. The unique culture of Malta is characterized by various influences from neighboring regions, including Italian, British, and Arabic. These influences offer a beautiful mosaic of traditions visible in Malta’s architecture, cuisine, and customs.
Economic Overview
As a developed European nation with consistent economic growth, Malta has proven itself to be a valuable player in the global economy. Acquiring Malta citizenship by investment is a popular option for investors as Malta holds notable membership status in several prestigious international groups, including the European Union, the Schengen Agreement, and the Eurozone.
Why Choose The Malta Citizenship By Investment Program?
VALUABLE PASSPORT
The Malta passport is ranked 8th worldwide, facilitating visa-free travel to over 187 countries around the world. Malta is also one of the only citizenship programs in the world that opens travel to the USA.
BUSINESS OPPORTUNITIES
Malta offers significant tax benefits, including low corporate rates and no inheritance taxes, alongside an extensive network of double taxation treaties. Its strategic Mediterranean location and robust economic policies foster a thriving environment for diverse business opportunities, from finance to tech startups.
A SAFE FUTURE FOR YOUR FAMILY
Malta is ranked 17th in “Safety and Security” by the latest Legatum Prosperity Index report. You and your family get settlement rights in all 27 EU countries, which means that you are live, work, and study in any of the these countries.
WORLD-CLASS FREE EDUCATION AND HEALTHCARE
Malta’s education system ranks as one of the best worldwide. As Maltese citizens, you and your family can enjoy free access to world-renowned English-taught educational programs within any of the EU member countries, as well as free university education in Malta. Healthcare services are also provided to citizens for free.
How to Qualify for the Malta Citizenship by Investment Program
Maltese Citizenship Requirements
Obtaining Malta citizenship by investment, commonly referred to as the Maltese Exceptional Investor Naturalisation (MEIN), involves meeting specific financial and residency requirements. If you’re considering obtaining a Maltese passport through investment, here is the essential criteria you must meet:
Age and Background:
– The primary applicant must be at least 18 years old and have clear criminal records. Background checks will be conducted to verify the applicant’s integrity.
– All applicants must have clear criminal records, proven by a police clearance certificate.
– Applicants must provide a medical examination report verifying that the applicant and their dependants are in good health, are not afflicted with any contagious diseases, and are unlikely to burden Malta’s public health system.
– All applicants must take an Oath of Allegiance to the Republic of Malta.
– Applicants must not be nationals from the following countries due to regulatory restrictions: Syria, North Korea, Venezuela, Somalia, Yemen, Sudan, South Sudan, Afghanistan, Iran, and the Democratic Republic of Congo.
– Applicants must not have been refused a visa to a country with which Malta maintains visa-free travel agreements unless they have secured a visa from that country after the denial of the visa.
Residency Requirement:
To qualify for Maltese Citizenship by Investment, an applicant must hold either a 12-month or a 36-month residency status in Malta. This requirement may be satisfied through purchasing or renting property fulfilling investment conditions stated below. A valid residence card and an e-ID card will also be necessary during the Malta citizenship by investment application process.
Health Insurance:
Applicants should possess health insurance coverage for themselves and all dependents, offering a minimum coverage of €50,000 (USD 52,722) per person.
Submission of Documents:
Several documents must be provided as part of the due diligence process, including birth and marriage certificates, a power of attorney, bank statements, and property leases or purchase agreements.
Financing Requirements:
Providing evidence of wealth and funding sources throughout the citizenship application process is essential to showcase adequate financial resources for both the applicant and their dependents in Malta.
Eligible Family Dependents:
– The spouse in a monogamous marriage or a partner with equivalent status, where the term ‘spouse’ is considered gender-neutral.
– A child of the main applicant or the spouse, who is under the age of 18.
– An economically dependent and unmarried child of the main applicant or spouse under the age of 29 when the agency approves the citizenship application.
– A child of the main applicant or the spouse, including an adopted child, who is 18 or older at the time of application and is classified as a person with a disability.
– An economically dependent parent or grandparent of the main applicant or the spouse, who is over the age of 55.
Malta Citizenship By Investment (CBI) Investment Requirements
Requirement 1: Financial Contribution (National Development and Social Economic Fund)
Depending on the residency period, applicants need to pay a non-refundable contribution to the National Development and Social Fund. For those applying after 36 months of residency, a €600,000 (USD 63, 2677) payment is required for the main applicant plus €50,000 (USD 52,723) for each additional dependent. In case of applying after 12 months of residency, the contribution increases to €750,000 (USD 790,847) for the main applicant and €50,000 (USD 52,723) for each additional dependent.
Requirement 2: Real Estate Investment
To obtain Maltese citizenship through investment, applicants must purchase a residential property in Malta with a minimum value of €700,000 (USD 738,124) or rent a property with a minimum annual rent of €16,000 (USD 16,871). This property must be held for at least five years from the date of obtaining citizenship in Malta.
Requirement 3: Donation
You must also make a mandatory donation of €10,000 (USD 10,544) to a registered cultural, sport, animal welfare, philanthropic, or artistic non-governmental organisation (NGO) or society within Malta.
Additional Fees
| Main Applicant | Spouse | Children under 13 years of age | Children over 13 years of age | |
|---|---|---|---|---|
| Due Diligence Fee | €15,000 (USD 16,000) | €10,000 (USD 10,500) | Nil | €10,000 (USD 10,500) |
| Government Residency Application Fees | USD 5300 | USD 1075 | USD 1075 | USD 1075 |
| Residency Card Fee | USD 30 | USD 30 | USD 30 | USD 30 |
| Administrative Fee | USD 1075 | USD 1075 | USD 1075 | USD 1075 |
| Passport Fee | USD 540 | USD 540 | USD 540 | USD 540 |
By meeting these requirements and passing rigorous due diligence checks, individuals interested in obtaining Malta citizenship by investment can qualify for the exceptional opportunities provided by this program. Partner with us at Next Generation Equity to ensure a smooth and seamless application process.
Malta Citizenship By Investment Application Process and Timeline
If you’re looking to gain citizenship by investment in Malta, it’s necessary to understand the full scope of the application process and timeline. Below is an in-depth look at all stages involved, including the timeline of each step along the way, financial dues, application formalities, and final citizenship acquisition.
Partner with Titos Global
Start your application process by partnering with Titos Global. We will act as your authorized agent throughout the Residency and Citizenship by Investment process. We will help guide you through the entire process and ensure you comply with Maltese regulations.
Initial Preparation: Gain Residency (2-3 weeks)
As you need to reside in Malta for at least 12 months before you can apply to become a citizen, gaining residency in Malta is the first step you must take in order to apply for citizenship.
– Begin your journey by gathering all pertinent documentation required for the initial residence permit application.
– Ensure that all documents are signed by a duly recognized Maltese Consul.
– Applicants must travel to Malta to apply for residency as this step involves the submission of biometric data, which must be done in person.
– Once in Malta and after providing biometric data, applicants can opt for the Fast-Track option, which allows them to obtain their Residency Card within 1 to 3 weeks.
– Following the acquisition of the Residency Card, applicants must meet the residency requirements (12 or 36 months) as part of the path toward citizenship.
Resident permit fees due on initiation of residency:
– Main applicant: €5,000
– Each additional family member: €1,000
– Residency Card fee per person: €27.50
Submit Your Eligibility Application (Day 1)
Within 12 months of obtaining your residency card, we will submit your eligibility application for citizenship. We will ensure all required documents are accurately prepared to avoid delays. You must pay the due diligence and application fees at this point.
Pay Fees (Day 5)
Within 5 business days of submission of the application, the Community Malta Agency will notify the main applicant whether their eligibility has been accepted or whether additional paperwork is required.
Undergo a Rigorous Due Diligence Process (4-6 months)
– Your background will be thoroughly checked through a multi-tier due diligence process to verify your suitability for Maltese citizenship.
Receive Preliminary Approval and Fulfil Investment Requirements (8-10 months)
Once the Community Malta Agency issues an official ‘In Principal Approval’, you are required to fulfil all citizenship requirements within 25 days. You will be sent an Investment Request Voucher (IRV), which is a request for the investments to be made.
You must submit evidence of fulfilment of the following:
- Donation of €10,000 to an approved NGO.
- A copy of a purchase agreement for a property in Malta that costs at least €700,000 or a lease for a property in Malta that has a minimum rent of €16,000 per year. Both of these options must be accompanied by a declaration from the applicant that they will keep it for a minimum of 5 years.
- Proof of investing either €600,000 or €750,000 into the National Development Social Fund (non-refundable).
Take an Oath of Allegiance
Go to Malta to take an oath of Allegiance (within 6 months of approval).
Receive Your Passport (12-18 months)
After taking the oath, you will receive your Naturalization Certification and Maltese passport within 1-2 months.
The complete journey from application commencement to obtaining Maltese Citizenship spans approximately 12 – 18 months. Keep in mind that false information or lack of documentation will lead to rejection, given that high standards of due diligence are maintained.
Deciding On Real Estate Purchase or Real Estate Leasing
Purchasing Property in Malta
Advantages:- Capital Appreciation: The Maltese property market has shown consistent growth, with the Residential Property Price Index (RPPI) rising by 6.8% year-on-year as of the second quarter of 2024. Investing in property not only integrates you into the Maltese economy but also positions you for potential capital gains thanks to the vibrant real estate market driven by limited land and high demand.
- Long-Term Benefits: The initial investment for purchasing property in Malta begins at €700,000 (USD 739,363). This not only covers the cost of the property but also accounts for additional expenses such as stamp duty and legal fees, which typically range from 8-12% of the purchase price. Investments in this price bracket grant access to Malta’s premium real estate market, encompassing luxury apartments with stunning sea views, historically significant homes in cultural districts, and spacious modern villas that offer both privacy and luxury. These properties not only come equipped with modern amenities and prime positioning but also hold significant potential for appreciation.
- Higher Initial Costs: The upfront investment is substantial, encompassing not only the purchase price but also associated transaction fees.
- Ongoing Maintenance: Owning property involves continuous costs, including maintenance and insurance, which should be factored into the total investment.
Leasing Property in Malta
Advantages:- Lower Entry Cost: Leasing property is more accessible for those with limited immediate funds. The program requires a minimum annual rent of €16,000 (USD 16,899), equivalent to about €1,334 (USD 1409) per month or approximately €307 (USD 324) per week. This option bypasses the large initial capital outlay required for purchasing and is less entangled with the administrative hurdles that buying entails. However, it’s important to keep in mind that if you stick to the €16,000 budget, it will only cover the rent for a modest apartment, or a small home.
- Flexibility: Renting offers greater flexibility and is less cumbersome regarding the administrative process. It is an ideal choice for those who prefer not to commit to the long-term financial and maintenance responsibilities associated with property ownership.
- No Equity Building: Rent paid is a sunk cost with no return on investment in terms of property equity. This may not be the best option for those looking to build long-term wealth through real estate.
- Contractual Obligation: Renters must maintain the lease for a minimum of five years to comply with residency requirements for citizenship, binding them to a fixed expense over that period.
Taxes in Malta
Taxes in Malta play an integral role in the country’s fiscal policy, which features a unique tax regime based on domicile and residence. This structure largely contributes to attracting foreign investments and ensuring financial stability while offering potential tax benefits to those acquiring Maltese citizenship.
Individual Tax
In Malta, tax residency is established by spending more than 183 days in the country during any calendar year. Tax residents are subject to tax on their worldwide income, while non-residents are taxed only on income that is sourced in Malta.
Income Tax Rates: Malta has a progressive income tax system. For individuals, the rates are:
- Income up to €9,100: 0%
- €9,101 to €14,500: 15%
- €14,501 to €19,500: 25%
- €19,501 to €60,000: 25%
- Over €60,000: 35%
All residents must file an annual tax return with the Commissioner for Revenue.
Value Added Tax (VAT)
The standard VAT rate in Malta is 18%. A reduced VAT rate of 7% applies to accommodation services, and 5% on certain items such as electricity, confectionery, and medical accessories. Essential services such as healthcare, dental care, and education are exempt from VAT.
Property Tax
In Malta, no ongoing property tax is imposed on residential properties, enhancing its appeal for homebuyers and property investors. However, potential buyers should be aware of the stamp duty costs involved with property transactions:
- Stamp Duty: This is levied at the time of purchase and is typically set at 5% of the property’s purchase price. This duty is payable by the buyer and is a key consideration in the overall cost of acquiring property in Malta.
- Provisional Duty on Documents: In addition to stamp duty, a provisional duty of 1% on documents is also payable by the buyer during the property transfer process.
Corporate Tax
Corporate tax in Malta is charged at a flat rate of 35%. However, Malta’s full imputation system allows for a tax credit to shareholders upon the distribution of dividends, which can effectively reduce the tax leakage to zero for non-resident shareholders.
- Effective Corporate Tax: Due to Malta’s extensive network of double tax treaties and effective tax refund system, the effective rate can be significantly reduced.
Inheritance and Gift Tax
Malta does not levy taxes on wealth, inheritance, or gifts. However, duty on documents and transfers may apply for certain transfers of real estate and securities.
Social Security Contributions
Both employers and employees are required to make social security contributions in Malta. The standard contribution rate for employees is 10% of their gross salary, capped at a maximum contribution base. Employers contribute an equivalent amount.
Double Taxation Agreements
Malta has established double taxation agreements with numerous countries. These agreements are designed to promote cross-border trade and investment and to protect against the risk of international double taxation, providing further fiscal security to individuals and companies operating across borders.
Additional Tax Incentives and Relief in Malta
Malta offers various tax relief schemes that cater to different individual circumstances, enhancing its appeal as a residence and investment destination:
- Parent Rates: Residents with dependent children are eligible for beneficial parent tax rates, reducing their overall tax liability.
- Reduced Income Tax for Artists: Artists in Malta may benefit from reduced income tax rates, encouraging cultural development and support for creative professionals.
- Royalty Income Exemptions: Income from royalties is exempt from tax, which can be particularly advantageous for authors, inventors, and other intellectual property holders.
- Part-Time Work: Effective tax rates for part-time workers are reduced, promoting flexible work arrangements and supporting part-time employment.
Benefits of Malta Citizenship By Investment Program
Inclusion of Family Members
Applicants can include their spouses, dependent children, and in some cases, dependent parents and grandparents in their applications. This inclusive approach allows entire families to obtain citizenship together, facilitating a unified relocation and enjoyment of Malta’s benefits.
Favorable Tax Environment
Malta offers an attractive tax regime for residents under the Global Residence Program, including no inheritance or wealth taxes, and no municipal taxes. Tax residents in Malta are not taxed on foreign-sourced capital gains, even when remitted to Malta.
No Minimum Residency Requirements
Malta does not require citizenship by investment recipients to maintain a minimum physical presence in the country. This flexibility allows investors to benefit from their Maltese citizenship without disrupting their lives in their home countries.
Extensive Travel Rights
Maltese citizenship grants access to visa-free or visa-on-arrival travel to over 187 countries, including the United States, Canada, the UK, and the Schengen Area. This extensive travel freedom is ideal for business people and globetrotters.
Dual Citizenship Allowed
Malta recognizes dual citizenship, enabling investors to maintain their original nationality while also enjoying the advantages of Maltese citizenship. This flexibility is especially beneficial for those from countries that also allow dual nationality. Moreover, dual citizenship can offer potential tax advantages depending on individual and business financial situations. This feature is particularly attractive to businesspeople who value the independence and flexibility that come with the ability to operate across multiple countries seamlessly.
Lifelong Citizenship and Legacy
Citizenship obtained through Malta’s investment program is permanent and can be passed down to future generations. This provides long-term security and a legacy of mobility and opportunity for applicants and their descendants.
Strategic Location
Malta is strategically located in the Mediterranean with excellent air links to Europe, North Africa, and the Middle East. This makes it an attractive base for business and travel.
Access to EU Rights
Maltese citizens enjoy all the rights associated with EU citizenship, including the right to live, work, and study in any EU country, access to healthcare, and consumer rights.
High Quality of Life
Malta offers a high standard of living with free access to healthcare and education for all residents. The healthcare system provides a wide range of medical services without charge, and the education system offers free schooling from pre-school up to tertiary levels, ensuring high standards and a broad curriculum.
The island boasts a rich history, vibrant cultural scene, and a mild Mediterranean climate, making it an attractive place to live or own a second home.
Malta Citizenship By Investment FAQs
Can I Have Three Citizenships in Malta?
Yes, it is possible to have three citizenships in Malta as the country permits dual or multiple citizenships for their citizens. If an individual holds citizenship of two different countries and obtains Maltese citizenship through investment, they can retain all three citizenships without any legal implications.
Where is the Best Place to Buy Property in Malta?
There is a range of remarkable investment opportunities across Malta which cater to various preferences and budgets. Top localities include Sliema, Valletta, St. Julian’s, Mellieha, Ta’ Xbiex, and Mdina, which attract investors primarily due to their scenic beauty, exclusive properties, modern infrastructure, and coastal areas. Investors keen on real estate can find a diverse range of properties from luxurious apartments to ancient villas.
How Long Does it Take to Get the Malta Golden Visa?
The process of obtaining a Malta Golden Visa can vary significantly in duration, typically taking anywhere from 12 to 14 months. This timeframe depends on multiple factors specific to each applicant’s case.
If I Obtain Citizenship Through Malta’s Investment Program, Will My Descendants Also Be Eligible to Apply for Citizenship?
Yes, if you obtain citizenship through Malta’s Granting of Citizenship for Exceptional Services Regulations, this citizenship includes full rights for life and can be passed on to future generations. This means your descendants can inherit citizenship by descent, regardless of where they are born.
Do Applicants for Malta Citizenship by Investment Need to Establish Connections with Malta?
Applicants are expected to physically reside in Malta and develop ties with the country during their residency period. They must satisfy these requirements by submitting documented proof. Additionally, when submitting the eligibility application, applicants are required to present their plans to the Agency on how they intend to establish these connecting factors with Malta.
Once I Receive my Maltese Passport Through the Citizenship by Investment Program, Do I Need to Continue Paying for Health Insurance?
No, once you become a Maltese citizen and receive your passport, you and your family will be entitled to free healthcare services. Maltese healthcare is funded through national insurance and taxation, which covers hospitalization, prescriptions, pregnancy, childbirth, and specialist treatments. Citizens enjoy comprehensive medical care without direct charges, as these are funded by the state. Malta and Gozo each have a main hospital and a network of smaller regional health centers, ensuring accessible healthcare across the islands.
Can I Add Dependents After I Receive Maltese Citizenship by Investment?
Once the Maltese citizenship eligibility application is submitted and the Eligibility Payment Request Voucher (EPRV) is paid, the application is considered final. After this point, only newborns added before the Oath of Allegiance can be included in the application.
What are the Benefits of Maltese Citizenship?
Obtaining Maltese citizenship offers numerous benefits. These include the freedom to travel, live, and work within the European Union without any restrictions. A Maltese passport allows for visa-free travel to over 187 countries, including the United States, Canada, and Australia. Additionally, Malta boasts a stable political environment and a competitive economy, providing attractive investment options. Citizenship also grants access to the free healthcare, education, and social services provided by EU membership. Furthermore, Malta offers an advantageous tax regime for investors and residents. Its convenient geographical location serves as a gateway to Europe, Africa, and the Middle East.
How Can I Get Malta Citizenship Without Investment?
Malta citizenship can be obtained through several methods apart from investment, including naturalization, descent, marriage, or adoption. You are eligible to apply for naturalization in Malta if you have resided in the country for four out of the past six years, including continuous residency for the 12 months immediately preceding your application. Individuals born to Maltese citizens or married to Maltese spouses can also apply for citizenship.
How Can You Become a Resident in Malta?
Without participating in the Citizenship by Investment program, individuals can obtain residency in Malta through various other programs. Some popular options include the Malta Residence and Visa Program (MRVP), the Global Residence Program (GRP), or the EU Blue Card Program for highly skilled workers.
How to Move to Malta from India?
To move to Malta from India and obtain Maltese citizenship by investment, follow these steps:
- Ensure that you meet the requirements: You must be at least 18 years old, in good health, and able to contribute financially to Malta.
- Application preparation: Spend time preparing your application, including gathering necessary documents and ensuring that you meet all eligibility criteria.
- Financial contributions: Make a contribution to Malta of either €750K (INR 6.5 Cr) after one year or €600K (INR 5.2 Cr) after three years of residency.
- Dependent fees: Pay €50K (INR 4.4 Lakh) for each dependent you wish to include in your application.
- Property purchase or rental: Either buy a property in Malta worth at least €700K (INR 6.1 Cr) or rent a home with an annual cost of €16,000 (1.4M INR).
- Philanthropic contribution: Donate €10K (INR 8.7 Lakh) to a recognized philanthropic organization in Malta.
- Await processing: The Maltese Counsel will process your application within four months, followed by a four-month compliance period for purchasing a property or other requirements.
- Obtain passport: After the processing and compliance periods, your Maltese passport will be issued. Total processing time ranges between 12 and 14 months.