LIO GLOBAL

Malta’s NEW Permanent Residency Programme Offers a Multitude of Advantages

THE MALTA PERMANENT RESIDENCY PROGRAMME

Malta is a very attractive destination, not only as a tourist location but also from a business and financial hub. As a member of the EU and the OECD, the Maltese passport is ranked as one of the top 10 in the world (currently ranked 8th). Due to its strong reputation and stable economy, Malta is an attractive financial destination for investors and families alike. In recent years we have seen a significant increase in South Africans acquiring residency in Malta as well as moving to Malta permanently.

Malta has two residency programmes: the new Malta Permanent Residency Program (which used to be known as the Malta Residency and Visa Programme) and the Global Residence Programme (MGRP). See below for details.

The Global Residence Programme is attractive to investors who are looking to reside in Malta and pay a fixed annual tax.

The Permanent Residency Program (MPRP) is aimed at investors who are looking to acquire a second residency through investment and not necessarily wanting to live in Malta.  

Click here to see a comparison between Malta’s PRP (residency) and IIP (citizenship) programmes. 

Click Here to learn more about Living in Malta and Buying Property in Malta

INTERESTING INFORMATION

The university of Malta is one of the oldest universities in Europe.

OFFICIAL LANGUAGE

English and Maltese

MEMBER

UN, EU, Eurozone, Commonwealth, Council of Europe, OSCE

CURRENCY

Euro

POPULATION

460 297

TOTAL AREA

316 km2 (122 sq mi)

GDP per capita

22,779.91 USD (2013)

Fact

Drive on the left

MALTA: PERMANENT RESIDENCE PROGRAMME (MPRP)

In 2016, the Government of Malta launched its new Residence and Visa Programme, which offers investors Maltese residency in only 3 to 4 months. The programme is aimed at non-EU foreigners who are looking for a straightforward route to obtain Malta residency. In the beginning of 2021 this programme has been updated and is now known as the Permanent Residency Programme and has been created to be more competitive with other European residency programmes.

This programme is very attractive to families who are wanting to get a second residency in the EU, but are not necessarily looking to physically immigrate and live in Malta.

In comparison to other countries’ programmes such as that of Portugal or Spain’s Golden Visa programmes, Malta offers a simpler and more straightforward route to residency as there are no language requirements. The application time frame offers investors the potential to achieve residency in 6 – 8 months.

As Malta has been offering residency in exchange for investment successfully for many years now, the Government has extensive experience in the management and running of its programmes. This can also be seen in the ongoing demand and success of its exclusive Individual Investor Programme for Citizenship as well as its Global Residence Programme.  

NEW INVESTMENT REQUIREMENTS

In order to qualify for the new Permanent Residency Programme, applicants must meet the following criteria: 

1

Purchase or Rental of property

In order to qualify for the residency programme, applicants are required to purchase or rent immovable property. The minimum value must be either:

EUR 300 000 if the property is in the South of Malta or Gozo (Rental option is EUR 10 000 annually)

or

EUR 350 000 for anywhere else in Malta (Rental option is EUR 12 000 annually)

2

Make a non-refundable Government contribution

A non-refundable Government administration fee must be paid of either:

EUR 68 000 if the investor purchases property,

or

EUR 98 000 if the investor rents a property

3

Make a donation of EUR 2000

This will be a philanthropic donation to an approved charity or an NGO in Malta.

REQUIREMENTS

The requirements for the Malta Permanent Residency Programme are relatively straightforward. Applicants must pass a due diligence test and prove legitimate source of funds and source of wealth.

  • The applicant must have a clean criminal record;

  • Main applicant must be over the age of 18;

  • Applicants must be in possession of valid travel documents;

  • The applicant must be a third country national. They cannot be a citizen of the EU, EEA or Switzerland;

  • Global health insurance: A valid global health insurance policy with medical expense cover. We can assist with this.

Malta’s due diligence processes are strict and applicants that do not meet the criteria can be declined.

CITIZENSHIP

Malta allows dual citizenship. This can be found in the Malta Citizenship Act. South Africa also allows dual citizenship provided an application is made to the Department of Home Affairs. 

Please note that both of these are residency programmes and do not lead to citizenship. In order to acquire citizenship in Malta, you should consider the Individual Investor Programme (IIP).

TRAVEL AND BENEFITS

Maltese residency allows the holder visa-free travel to all the Schengen zone countries as well as the right to live, study and work in Malta. It allows the investor to spend a maximum of 90 out of every 180 days in any of the Schengen zone countries allowing freedom of travel and mobility within most of the EU. 

Please note that Maltese residency does not give the right to live and work in Europe, only Maltese citizenship will give this freedom and access. With a Maltese passport, one can travel visa free to more than 180 countries including the USA.

FAMILY REGROUPING

Malta is a family friendly country and allows the spouse and unmarried dependent children to be included in the application, provided you can show they are dependent.

Parents and Grandparents on either side can also be included.

TAX

Malta has a double taxation agreement with many countries, including South Africa, which can add an attractive advantage for some investors.

Acquiring Maltese citizenship does not in itself trigger tax residency. Individuals who are resident but not domiciled in Malta pay tax on income arising in Malta as well as income remitted to Malta from outside.

In Malta, personal income is taxed at progressive rates up to 35%. Capital Gains Tax (CGT) is levied on immovable property and shares, but it is not levied under certain prescribed conditions. Malta does not have estate duty or gift tax. Corporate tax is 35% and standard VAT is 18%. Malta has special tax concessions that apply for non–resident or non-domiciled persons.

Property Tax in Malta

There are no property taxes in Malta, i.e. no levies or rates and taxes; only water and electricity which is based on usage.

Stamp duty is 5%, and notarial/legal fees between 1-3%.

There is no inheritance tax.

Please note, we strongly encourage clients to obtain professional tax advice. 

FEES

Passport issuance fee (per passport) EUR 500
Bank Charges EUR 200

Fees vary depending on the size of the family and the investment option:
Government application fee
PRIP Permit Fee  
Government renewal fees
Notary, Transfer, Stamp Duty, Tax, Fiscal/Financial requirements

In addition, professional fees will also be due. This will depend on the size of family and number of applicants as well as which lawyers you choose. Typically these range from EUR 16 000 – EUR 40 000 for the full 5 year period depending on the service provider.

Please contact us for a personalised proposal: info@lio-global.com

PROCESS AND TIMELINES

The Permanent Residency Programme has a relatively straightforward process. The initial non-refundable deposit of the contribution is paid along with the application submission. Once thorough due diligence checks have been done, successful applicants must complete the remaining qualifying investments. They will then be issued with a Malta Residency Certificate which is monitored annually for the first five years and then only every 5 years thereafter. 

MALTA - COUNTRY INFORMATION

Malta, officially the Republic of Malta, is an archipelago of 7 islands located in the Mediterranean Sea. The archipelago consists of three islands: Malta, Gozo and Comino with a total population of over 400,000 inhabitants.

Malta is the largest island and known as the cultural, commercial and administrative centre. Gozo, the second largest island, is more rural, and can be characterised by fishing, tourism, crafts and agriculture. Comino, which is the smallest of the trio, has one hotel and is largely uninhabited.

The country lies 80 km south of Sicily and 284 km East of Tunisia. With a tiny area of 316 square kilometres, it is one of the world’s smallest and most densely populated countries and has the smallest capital city in the EU. Malta gained independence from the United Kingdom in 1964 and then became a republic in 1974. Malta and Gozo more famously known as investment and lifestyle destinations and the country is known to have one of the best climates in the world.

  • The University of Malta is one of the oldest universities in Europe and was founded in 1592.

  • Malta’s Grand Harbour boasts of being one of the best natural deep-water harbours in the world.

  • The megalithic temples in Malta boast of having a lineage older than England’s Stonehenge.

  • Malta is believed to have served as the site of the legendary city of Atlantis.

  • Mosta Dome is the third largest unsupported church dome in Europe.

  • Calypso Cave is said to be the cave that Homer wrote about in The Odyssey.

  • Valletta, its current capital, is one of the most concentrated historical areas in the world, according to UNESCO.

  • Malta receives almost triple of its population in tourist arrivals per year: from slightly more than 414,000 people working and living on the island to 1,242,000 of tourist arrivals.

CONTACT US TO MEET WITH A PRIVATE CLIENT ADVISOR: info@lio-global.com or complete the form: Here

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