Citizenship by Investment Malta

Program Overview

The Malta Citizenship by Investment program offers an effective route to gaining a European passport through investment. It is the most affordable route in investment terms to EU citizenship. However the process is lengthy and involved and investors are required to contribute a significant sum as a donation to the Maltese government.

Investment

Development Fund

To qualify for Malta citizenship by investment the main applicant is required to contribute a minimum of €650,000 into a development fund set up by the Government of Malta. Spouses and children are required to contribute €25,000 and unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

Real Estate

Applicants are required to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 pa for five years.

Investment in Bonds/Shares

Applicants are required to invest at least €150,000 in bonds or shares approved by the Maltese Government and this investment must be maintained for five years. This investment will  need to be made in stocks sanctioned by the government as beneficial to the Island.

Requirements

Applications for Maltese Citizenship by Investment are processed by the government run entity. To qualify for citizenship the main applicant must pass a ‘fit and proper’ test.  Applicants must show they are in good standing and repute. The Government of Malta is committed to the highest standard of due diligence to ensure only deserving and reputable applicants are allowed to proceed for the grant of Maltese citizenship. A four-tier due diligence process is carried out directly by the Government to assess applicants and process and approve applications at various stages.

In addition to the qualifying investment applicants must provide a police certificate demonstrating a clear criminal record. Applicants must show they do not suffer from a contagious disease or a health condition that could become a significant burden on the state. And importantly, applicants must demonstrate a “genuine link” with the island. The genuine link test ensures that the main and dependent applicants are able to demonstrate a genuine connection with the jurisdiction in their personal, social, philanthropic and commercial activities.

Family

The main applicant may also add dependents to a citizenship application including his or her spouse and children under 18. Dependent children up to the age of 25 can be included along with dependent parents and grandparents over the age of 55.

Taxes

Like all European countries the Maltese tax system subjects persons to tax on the basis of domicile and residence and not citizenship. Residence for tax purposes will require a stay of at least 183 days in any one year. Tax for non-residents is due only on income and capital gains arising in Malta.

Capital Gains Tax (CGT) is chargeable on property as a main residence sold within 3 years at 12%. However if retained for 5 years there is no taxation on sale. There are no inheritance or death taxes and no net worth or wealth taxes in Malta.

Living, Working and Studying

Applicants and their families gaining citizenship in Malta gain the full rights of EU citizens and have the ability to live, work and study anywhere in the European Union.

Travel

Applicants gain a European passport and the access this gains allowing travel to 180+ countries and districts without a visa including the UK, USA and Canada.

Process and Fees

The application process for Maltese citizenship is lengthy, taking the best part of a year to complete. Aside from the investments to be made applicants should budget between €60,000 and €80,000 for legal costs associated with the lengthy processing of applications by an accredited law firm.

Benefits

Malta is a full member of the European Union and part of the EU Schengen zone. Citizens of Malta are European citizens. One of the fundamental rules of the EU is the ability for its citizens to travel, live, work or study anywhere within the European Union. Maltese citizens and passport holders are able to live in any of the 28 countries that form the EU.

Summary

The Maltese Citizenship through Investment program is ideal for investors who have the time to wait and who are committed to Malta and able to show and develop genuine ties with the island. The overall cash outlay is lower than that of Cyprus, however the lost contribution element is not conducive to maximising return on investment. While the Malta program is more affordable, wealthier investors may wish to consider the Cyprus Citizenship by Investment program for a far quicker and assured route to EU citizenship.