Malta Citizenship by Investment

Choose Malta: Your Easy Guide to Malta Citizenship by Investment, 2022

Located in Southern Europe, Malta is famous for its breathtaking scenery and beaches. This country is also home to the Megalithic Temples, considered one of the oldest temples in the world. However, Malta is also famous among investors and entrepreneurs because of its innovation-driven economy. With the country being at a crossroads between North Africa, Europe, and the Middle East, Malta has an advantage regarding trade and investments.

Investors interested in the Maltese economy often benefit from citizenship by investment. Also known as the Golden Visa, citizenship by investment (CBI) allows an individual to become a citizen in exchange for investments in stock, real estate, or even start-ups. This article will give you an overview of the basics of Malta Citizenship by Investment.

Malta
Malta

Citizenship by Investment in Malta

Reintroduced in November 2020, the Malta Golden Visa offers citizenship to individuals wanting to settle in Malta. This is considered one of the most popular investment programs in Europe, with hundreds of applicants trying to get into the citizenship program each year. This helps the country’s economy and makes Malta more attractive to foreign investors and entrepreneurs.

Before its reintroduction in 2020, the Malta Golden Visa was formerly called the Malta Citizenship by Investment Program. However, this was closed when it reached its cap of 1,800 applications. The new program, Citizenship by Naturalisation for Exceptional Services by Direct Investment, grants an applicant and their family Malta citizenship when they contribute to the Maltese economy.

The Malta Golden Visa under the new program regulations will only give citizenship to 400 applicants annually. The program will also be capped once 1,500 applicants become citizens of the country.

Investment Amount

How much is the investment amount?

You can take advantage of the Malta Golden Visa program by contributing to the nation’s economy. The amount ranges from €700,000 – €1,460,000, depending on the type of investment you make. Here are the investments you can make for the Malta Golden Visa programme:

Contribution to the National Development and Social Fund

Serving as its source of social welfare and development funds, Malta’s National Development and Social Fund is organised by the Government of Malta and run by a board of trustees. Their projects concern the well-being of Malta’s citizens, including public health, education, job creation, and social improvement. When contributing with the intention of gaining Maltese citizenship by investment, your investment is non-refundable and depends on your proven length of residency in Malta:

  • €600,000 for 36 months or 3 years;
  • €700,000 for 12 months or 1 year;
  • Additional contribution of €50,000 per each additional dependent

This contribution must be made within four months after the issuance of your Malta Letter of Approval in Principle.

Donations to Registered NGOs

In addition to the contribution to the NDSF, you are also required to donate at least €10,000 to a local non-profit organisation or NGO. This must be a charitable donation and must be made within four months after your application is approved in principle. You can choose the NGO that will receive your donation, as long as it is enrolled with the Commissioner for Voluntary Organisations.

Rent & Dollar

Rent or Purchase Real Estate

As a requirement, applicants for Malta citizenship must retain a residence in the country for at least five years. You can fulfil such requirements by either purchasing Malta real estate or leasing a property. Once you receive your Malta Letter of Approval in Principle, you must provide proof of purchase/leasing of the real estate within four months. You are not allowed to sublease the property.

Value for renting and/or purchasing Malta real estate is as follows.

  • Purchase – €700,000 or more
  • Rent – minimum yearly rent of €16,000

Investment Requirements

What are the requirements?

Malta’s Citizenship by Investment Program focuses on one goal — a genuine link between the applicants and the country. This has heavily influenced the process and requirements of obtaining Maltese citizenship. To be eligible for the program, you must fulfill the following requirements in its four-tier due diligence process:

  • Be at least 18 years of age.
  • Be in good health (this also applies to dependents who will be accompanying you).
  • Invest at least €600,000 if you are already a resident in Malta for three years, or €750,000 for twelve months.
  • Buy a residential real estate in Malta worth at least €700,000 and retain the property for a minimum of five years. Alternatively, you can lease a residence with annual rent worth €16,000. must not sublease the property within the required five-year period.
  • Donate €10,000 to a registered NGO or society, approved by the Community Malta Agency.
  • You will need to possess a valid residence card before applying for citizenship. You will be given an electronic ID card which you can use when purchasing real estate.

How long does the application and investment process take?

Obtaining Malta citizenship through the Citizenship by Investment program has four tiers of due diligence. You must fill up certain forms that are accompanied by fees and provide specific documents. The due diligence tiers check the application and will be declined if findings strongly suggest that the application contains false information or omissions.

However, before applying for Malta citizenship, you must first become a valid resident of the country. This Residence Permit has a lot of benefits, including the privilege of residing in Malta and traveling visa-free within Europe’s Schengen Area.

To become a Malta resident, you must travel to the country and apply for residency in person. You will be asked to give specific information as well as your biometrics. You will be granted residency status for three years once your application is approved. Likewise, you can only extend your residency if you apply for eligibility in the Malta citizenship by investment programme.

Once approved, you will be asked to deposit €10,000 to an investment of choice. This is required when you apply for citizenship. You will also pay the following upon the start of your Malta residency.

  • €5,000 for your Resident Permit fee
  • €27.50 for your Resident Card fee
  • €1,000 for the Resident Permit of each of your dependents.

Note: the Resident Card fee is for each person.

Once you are a valid resident in Malta, you can apply for citizenship by an investment after a certain amount of time. Here is a timeline of the application process:

Day 1

You formally apply for citizenship by investment eligibility to the Community Malta Agency.  This must be done by an Accredited Person once you receive your Malta Residency Card. Your application contains supporting documents and proof of your source of funds. This will also include whether you will obtain citizenship after twelve or thirty-six months of residency, accompanied by the appropriate investment (€750,000 or €600,000).

You have twelve months from receipt of your Residency Card to submit your eligibility pack. You will also have to pay certain fees once you submit.

  • Administrative fee of €1,000 for each person specified
  • Due diligence fees of €15,000 for the principal applicant, €10,000 for their spouse, €10,000 for each dependent, and €15,000 for the benefactor (if applicable)

Day 5

After five business days, the Community Malta Agency will contact you or any Accredited Person about whether your application for eligibility has been accepted for review or needs additional paperwork. If you are accepted, the Agency will also send an Eligibility Payment Request Voucher (EPRV) to use to pay your due diligence and administrative fees.

Day 90

By this time, you will receive confirmation that your eligibility application and supporting documents have been accepted and in order from the Community Malta Agency. However, your eligibility is still subject to an additional thirty days for verification by the Government of Malta’s regulatory body.

Day 120 to 150

Your application is officially approved by the Minister. However, your status as a citizen is still conditional. This is because, by Malta’s investor citizenship regulations, you still must fulfil your remaining obligations.

After 12 months or 36 months

After being a Malta resident for the period you stated in your eligibility application, you can formally apply for citizenship. You will file and submit further documentation to the Community Malta Agency, confirming your former details and informing them of any change. Your documents will be examined thoroughly, and you must perform extensive due diligence.

Issuance of Approval in Principle

You will receive an official Letter of Approval in Principle from the Community Malta Agency once the Minister approves your application. After this, you have four months to fulfil all requirements in the Malta citizenship by investment program, including the remaining balance on your National Development and Social Fund investments paid through an Investment Request Voucher (IRV).

Submission of Evidence of Fulfillment

As mentioned before, you must submit your evidence of fulfillment to the Agency within four months of being approved in principle. Here is a list of the documented evidence you must provide.

  • Exceptional direct investment, €600,000 for 36 months and €750,000 for 12 months of residency. This includes proof of the €10,000 initial deposit, plus the proof of payment of the remaining balance.
  • Exceptional direct investment for each dependent worth €50,000
  • A copy of your lease or purchase agreement for a Malta real estate property accompanied by a declaration that you will retain the property for at least five years
  • Proof of the receipt of your donation to a registered non-profit organization or society in Malta
  • Evidence that your ties to Malta, whether personal, commercial, or financial, that you mentioned in your proposal are currently being honoured.

Your Post-Approval Pack is Reviewed

Once you submit your evidence of fulfilment or the post-approval pack, the Government of Malta will do a final review. By this point, your exceptional investment to the NDSF must have already been made in full.

Post-Approval by the Government of Malta

You will know if the Community Agency of Malta has finished with their final review and if your application for citizenship by investment is entirely approved when they issue a Letter of Invitation addressed to you and any dependent. Once you receive the Letter, you can schedule an appointment to take your Oath of Allegiance.

If you are eighteen years of age or older, you must physically travel to Malta to take the Oath of Allegiance. The Oath of Allegiance should be taken within six months after you receive the Approval in Principle from the Minister.

Once you have taken your Oath of Allegiance, you will be issued and receive a Certificate of Naturalization. You will also be given a Malta Passport. These are all evidence that you have obtained Malta citizenship through the citizenship by investment.

Dual Citizenship

Dual Citizenship in Malta

When it comes to getting second citizenship, it is often a worry for applicants that they might renounce their first citizenship. However, in Malta, this is not an issue. This is because the country allows dual citizenship for its citizens. This means you can acquire and retain foreign citizenship your Maltese citizenship. However, it is still highly advisable that you consult with legal counsel, as your current country of citizenship may have restrictions prohibiting you from obtaining Malta citizenship or possessing your own Malta passport.

Application

Documentation

When applying for your citizenship by investment, you must give specific information documentation. Here are some reminders when it comes to your documentation for your application.

Biometrics

As an applicant, you must physically visit the Maltese embassy or the Malta Passport Office situated in Valletta for your biometrics. These include your facial features as well as your fingerprints. However, providing biometrics is exempted for children applicants under six years of age, while fingerprinting is only allowed for applicants aged twelve and above.

Your biometric data is stored for as long as six months while processing your Malta citizenship by investment application process.

Can you submit documents in your native language?

When you apply for the Malta citizenship by investment program, all documents that you are required to submit must either be in English or accompanied by an authenticated translation. You will also provide details about the professional translator who officially translated the documents.  For example, when you submit papers in Korean, Arabic, or any language other than English, you must submit an accurate English translation along with your translator’s details.

Are original copies of a document submitted for the application?

When you are mandated to submit a certified document copy, you can give a photocopy of the original copy. However, a photocopy will only suffice when a duly licensed lawyer in Malta certifies the photocopy to be a true copy of the original. If a Malta-registered lawyer is unavailable, a Malta-registered notary public or commissioner for oaths or by a Maltese Consular or Diplomatic Representative will suffice. However, when a document is not certified by the persons mentioned beforehand, you will be required to get authentication from an apostille.

tax system in malta

Tax System in Malta

If you obtain Malta citizenship through its Citizenship by Naturalisation for Exceptional Services by Direct Investment program, you will not have any tax consequences. This means that your citizenship status does not affect your tax treatment unless you become a tax resident of the country.

Even if you are a Malta citizen, you can still retain the tax status of a non-domiciled person. This means you are only required to pay taxes on any income you earn and receive within the country. Suppose you have income or capital gains sourced from outside of Malta. In that case you are not obligated to pay taxes as these are kept in banks outside the country. Therefore, you have an extremely advantageous tax exposure.

Malta also does not impose taxes on the following.

  • Inheritance or death,
  • Net worth or wealth taxes,
  • Municipal taxes and rates
  • Real estate taxes.

If you are worried about double taxation, remember that Malta has double taxation treaties with roughly sixty countries worldwide. Malta has a 35% corporate tax rate, to which special tax concessions apply, especially to non-resident company owners.

Malta Passport

FAQs

Interested in becoming a Malta citizen through its citizenship by investment program? Here are some FAQs you would need to remember.

Is Malta Citizenship by Investment Available to Everyone?

To be eligible for Malta Citizenship by Investment, you must:

  • Be a person of integrity.
  • Be 18 years of age or older.
  • Have a clean police record.
  • Have no ties with the following countries— Democratic Republic of Congo, Iran, North Korea, Somalia, South Sudan, Syria, Yemen, and Venezuela.
  • Not be a national of any country on a United States travel ban.

Can I include my whole family in one application?

Malta values the family in its society. This positively influences the application of the country’s citizenship by investment program. You, the principal applicant, can include all your related family members in one application at the outset. Below are the allowed family members you can have in your application.

  • Married spouse or partner in a stable and durable relationship. You must provide evidence of the durability and stability of your relationship with your partner.
  • Dependent children under 27 years of age, whether natural, adopted, or stepchildren.
  • Dependent parents over 55 years old.

Family applications have the same processing time as individual applications. This means that these types of applications take four months to process.

Is there a language requirement?

Unlike other European countries, a citizenship test is not a requirement when it comes to applying for Malta citizenship by investment. This means you are not required to learn and know Maltese or even English for your application to be approved.

Can I pay in cryptocurrency?

Unfortunately, the agency overseeing the Malta citizenship by investment program, the Community Malta Agency, does not accept nor recognize Bitcoins and other cryptocurrencies as legal investment currency for financial transactions or other compulsory investments. This means that you cannot use Bitcoin or other cryptos when donating to the NDSF, a registered non-government organisation or society in Malta, or even when purchasing or renting real estate.

Where can you travel visa-free with a Malta passport?

Malta has continuously worked on expanding its list of visa-free countries. They sign agreements with other countries making travel for Maltese citizens visa-free. In March 2019, the country successfully signed a waiver with Ghana, making citizens capable of travelling visa-free to the African State.

As of 2020, individuals who hold a Malta passport can travel and enter 187 countries visa-free. These countries include Argentina, Mexico, Japan, South Korea, South Africa, the UAE, the US, and the UK. Also, a Malta passport gives you visa-free access to all countries in the Schengen Area.

Is Malta safe to invest in?

Malta has been known as an economic powerhouse in the European region. The country withstood the European Great Recession in the late 2000s, unlike its neighbouring countries with crashing real estate markets. The country also has banks that have total assets worth seven times more than the entire country’s gross domestic product.

Unlike other countries in the Eurozone, Malta has a very excellent credit rating, with Fitch ratings giving the country an A+ rating and S&P Global Ratings an A- in 2021. Malta’s government bonds are also high in demand among professional and retail bond investors.

All these reasons make Malta an economically secure nation, making investing safe and beneficial to the investor.

How is life in Malta?

Malta has great scenery as well as a picturesque coastline. Its location makes its climate Mediterranean— hot and dry summers and wet and mild winters. This is also a country that is rich in history, with many cultural monuments, archaeological sites, and historical treasures found all over the small island nation.

Malta also has high quality and standard of life. You have a work-life balance, and you can feel extremely safe walking and travelling the country’s streets. This is because Malta has one of the lowest crime rates among countries globally. It is also the 2nd safest country in the world regarding vulnerability and resilience in tackling natural disasters.

In terms of the cost of living, Malta is pretty laid back. The cost of living in the country is relatively cheaper than that of other European countries and the United States.

Final thoughts

If you are looking for a country that has a lot to offer, Malta is the place you are looking for. You can have a high-quality life here, with your finances safe and secure. Many expats use different routes to obtain Malta citizenship, and the citizenship by investment program is a popular route. If you’re interested in becoming a Malta citizen by exceptional investment, you can use this as a guide to making your application easier and stress-free.

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