Malta Permanent Residence Benefits for Investors
Malta has become an increasingly attractive country for investors seeking EU residence permits. Your move to Malta will be a beneficial journey because of its strategic location, growing economy, business opportunities, and high quality of life.
In this article, we’ll cover Malta's permanent residence benefits, the main methods to obtain a residence permit, and how the application process for the residence permit goes.
Key Takeaways
- Benefits of permanent residence in Malta include access to the Schengen zone, a high quality of life, and an opportunity to apply for Maltese citizenship.
- Malta permanent residence benefits for investors are an investor-friendly tax system, business opportunities, and high investment returns.
- To obtain Malta permanent residence, you can apply for the Malta Ordinary Residence Program, Malta Global Residence Program, and Malta Golden Visa.
4 Benefits of Getting Malta Permanent Residence
Obtaining a Malta permanent resident permit comes with a wealth of advantages. Here are some of them:
Visa-free Travel
One of Malta permanent residence benefits is its access to the 29 EU countries within the Schengen zone. It’s especially convenient for those who have planned business meetings, family visits, or are just fond of exploring new countries.
Multilingual Society
Maltese and English are both official languages in Malta. Additionally, there are small communities of British, Greek, and Italian, meaning these languages are often spoken there as well, which makes it possible to practice foreign languages in Malta.
Multiple Citizenship
After having a Malta permanent residence permit for at least 5 years, you can apply for Maltese citizenship. Malta is one of those few EU countries that allows multiple citizenships, meaning that you can have 2 or more citizenships if the other countries involved have no limitations.
High Quality of Life
Applying for Malta's permanent residence programme and getting a residence permit is an attractive option for individuals, as this country has a growing economy, a high standard of living, and affordable prices. Moreover, Malta offers free healthcare and education, enhancing its attractiveness as a place to live and work.
4 Benefits of Getting Malta Permanent Residency as an Investor
Family Extension
As an investor, you can include your relatives in the Malta golden visa application. You’re eligible to include the following dependents:
- Spouse
- Parents of the Main applicant and Spouse, over the age of 55
- Children under the age of 18
- Financially dependent children under the age of 29
Investor-friendly tax system
Malta has a progressive tax system, meaning the higher an individual’s income is, the higher the tax must be paid. The rate ranges from 0% to 35%.
As for the companies, Malta has adopted the full imputation tax system, which is designed to prevent the same income from being taxed multiple times. Here’s how it works: after making a profit and paying corporate tax (35%), the company distributes after-tax profit as dividends to shareholders, including a tax credit for the corporate tax that the company has already paid. After that, shareholders include the dividend and the tax credit in their taxable income and use the tax credit to reduce the amount of personal income tax they need to pay.
Business opportunities
Talking about Malta permanent residence benefits, it’s essential to mention the business opportunities. Having a favorable business environment, a well-regulated financial sector, a strong legal framework, and supportive governance policies, this country encourages entrepreneurship and innovative business solutions. Malta's strategic location at the crossroads of Europe, Africa, and the Middle East provides excellent connectivity and access to diverse markets. You can establish or expand your business in Malta or other EU countries. As an entrepreneur, you can consider starting your business in sectors such as finance, construction, technology, and tourism, which have been growing in recent years.
High investment returns
Another reason to consider obtaining Malta permanent residence is that it gives high returns off of real estate property and business. It’s important to highlight the fact that Malta’s real estate market is growing, more than three million tourists have visited Malta in 2023, providing high rental income. Investing in sectors such as business, finance, technology, and entertainment can ensure high investment returns as well.
How to get Malta Permanent Residency (MRVP)
There are several methods to receive Malta permanent residency. The most famous ones are:
Malta Ordinary Residence Program
To be eligible for this program, you need to stay in Malta for at least 6 months in one year and be an EU/EEA resident. Other requirements include:
- Proof of financial stability
- Physical address evidence (buying or leasing a property)
- Employment or studies (as a reason for staying there)
Malta Global Residence Program
Compared to the first option, Malta Global Residence Program was created for non-EU/EEA/Swiss nationals. It’s especially beneficial for those who want to acquire a property with favorable taxes. Successful applicants need to make a minimum annual tax payment of €15,000 and may qualify for double taxation relief. Income tax is decreased at a rate of 15% on foreign source income remitted to Malta.
If you want to apply for the program, you need to:
- Be a non-EU/EEA/Swiss national,
- Have health insurance,
- Have proof of financial stability,
- Have a valid travel document,
- Be fluent in Maltese or English,
- Hold a qualifying property,
- Be represented by Authorized Registered Mandatory (ARM).
Malta Golden Visa (Malta Permanent Residency (MRVP)
If you want to capitalize on Malta permanent residence benefits, the best option is to apply for Malta golden visa. Also known as Malta Permanent Residence Program (MPRP), this program is a residency-by-investment initiative launched in 2021. The main goal is to attract non-EU, non-EEA, and non-Swiss citizens by offering Maltese residency in exchange for real estate investments and government contributions.
To be eligible for the program, you must
- Be a non-EU, non-EEA and non-Swiss citizen,
- Not be a citizen of the currently sanctioned countries, which include Afghanistan, North Korea, Iran, the Democratic Republic of the Congo, Somalia, South Sudan, Sudan, Syria, Yemen, Venezuela, Russia, and Belarus,
- Have proof of financial stability and regular income for the residency duration,
- Have health insurance for the residency duration,
- Have the minimum amount of investment,
- Have a valid travel document,
- Have a clean criminal record,
- Be a good character.
It’s also important to calculate the approximate amount of costs for the program. As an applicant, you need to consider the following:
- Malta Government Contribution
- Main applicant: €28,000 (if the applicant has purchased the property), €58,000 (if the applicant has rented the property)
- Spouse: no charge
- Children: no charge
- Dependent parents and/or grandparents: €7,500
- Philanthropic Donation: €2,000 (must be paid only by the main applicant)
- Malta Property Investment:
As an investor, you’ll need to hold the investment property for at least 5 years. You can either buy a property for €350,000 (or €300,000 if the property is in the south of Malta or in Gozo) or lease a property for €12,000 per year (or €10,000 if the property is in the south of Malta or in Gozo),
- Malta Government Fee: €40,000 (must be paid only by the main applicant),
- Other Legal Fees: This may vary depending on the number of applicants.
The main steps of getting the golden visa are:
- Choose a trustworthy consulting agency, who will guide you through the whole process,
- Choose the property you want to purchase / lease,
- Submit a cover letter, where you give the reasons why you are applying for this program,
- With the help of a licensed agent, gather all the required documents. Having the guidance of a professional like Mirabello Consultancy will make the application process hassle-free,
- Make an appointment with The Residency Malta Agency Customer Care to submit the application materials to the appropriate officials,
- Pay the fees,
- Undergo due diligence: during this process, Maltese authorities check the documents of the applicants,
- Receive the letter of Final Approval in Principle,
- Receive the Malta golden visa.
Conclusion
In conclusion, obtaining permanent residence in Malta offers investors a range of significant benefits. With visa-free travel within the Schengen zone, a high quality of life, and opportunities to apply for Maltese citizenship, Malta is an attractive country for individuals. You can acquire a residence permit by applying for various programs, such as the Malta Ordinary Residence Program, Malta Global Residence Program, and the Malta Golden Visa. To help you find the program that fits best with your needs, just contact our specialists at Mirabello Consultancy.
