Malta Golden Visa Residency

Malta attracts wealth, talent, investment to its shores providing red carpet welcome to wealthy foreigners investing in the island. Malta offers golden visa (permanent residency) to investors and their family members including adult children and parents receive permanent residency rights to live in Malta with free movement in schengen area. Malta issues schengen residence permit can travel freely within 26 EU schengen states including Switzerland.

Malta’s Permanent Residency Programme (MPRP) is currently one of the less expensive programmes in the world. It provides beneficiaries the opportunity to live and stay in Malta permanently and visa access six months in every twelve months.  The Malta Permanent Residency Programme, provides international investors with permanent residency rights. These rights will apply only for non-EU / EEA / Swiss Nationals. The Programme provides an opportunity for potential beneficiaries and dependents to reside, settle or stay indefinitely in Malta.

The New Malta Permanent Residency Program (MPRP) was launched on March 29, 2021 making this program more cheaper and attractive. The minimum real estate investment starts with 300K euros.

Why Malta?

• Safest country in the World also in Europe
• Stable political climate, strong economy and investor confidence
• Gateway to the EU with full access to single EU market
• Ease of doing business with low corporate taxes.
• Malta is full member of European Union and Schengen Agreement
• Warm weather, a sunshine country
• English is official language being a former British colony.
• Free movement in Europe and Schengen Area.
• World class education and health care benefits
• Opportunity to invest in Maltese real estate market.
• Prime Destination for EU Yacht registrations with VAT benefits
• Fastest growing limited real estate market.
• Multicultural country with diverse cultures and welcoming people.
• International Tax planning advantages

Benefits

• Cheapest GV Program in Europe.
• Malta Permanent Residency by Investment scheme
• Permanent residency in Schengen member state (or Gozo)
• Visa Free movement in the schengen area (6 months out of 12 months)
• No requirement to live in Malta.
• Low Government fees.
• Foreigners are unrestricted to buy property in Malta and Gozo.
• PR card for family members
• Permanent residency for upto 4th generation family members.
• Full rights to live, work, study, settle for infinite time
• Suitable for those who seek only residency (not citizenship)

Legal Framework

The MPRP falls under the Immigration Act. By the virtue of S.L. 217.26, a third country national who is issued with a certificate in terms of these Regulations is entitled to the right to reside, settle or stay indefinitely in Malta together with one’s registered dependants.

Malta Permanent Residence Programme Regulations is published under Regulation Regulation – LN 121 of 2021

1. Renting

The renting is the cheapest route to obtain Maltese golden visa.

• €40,000 MRVA administration fee (covering the entire family)
• €58,000 Government contribution;
• €10,000 Rent per year in the South of Malta
• €2,000 NGO charity donation
• Legal, Professional and Agency fees (all inclusive covers family)
• Mandatory health insurance
• Additional small costs (residence cards, notary, translation, certification fee)

The donation is not reimbursed. The good thing is that unlike other European Programmes the donation is only paid after approval.

Expect total one time costs under this route €135,000 (all inclusive family members). This is the cheapest option for many applicants.

2. Real Estate

The Real estate option may interest those who want to buy property in Malta.

• €300,000 Property in the South of Malta
• €40,000 MRVA administration fee (covering the entire family);
• €28,000 Government contribution;
• €2,000 NGO charity donation
• €400 per adult Health Insurance for family
•  Legal, Professional and Agency fees (all inclusive covers family)
• Additional costs (residence cards, notary, translation, certification fee)

Expect approximately total costs of €395,000 (all inclusive with family members) under this route.

We currently offer this option through authorized firm and investment advisor in Malta.

Family costs

• Additional Dependents (parents-in-law & grandparents) – €7,500 per capita;
• Spouse of an already approved main applicant – €7,500;
• Child 18+ of an already approved main applicant – €5,000;
• Minor child of an already approved dependent child/or of an already approved spouse – €5,000;

Family members

MRV golden visa scheme allows up to fourth generation family members (ie. Grandparents) along with your parents to be included in the application. This will cost you additional person. This is very important because grandparents cannot be left out, giving you full advantage to live as a full family.

Adding family members is flexible you can also add anytime too.

How to Apply?

You can start the process paying initial agency fee. You pay pay the rest after Govt approval of your application. All payments are done in stages/installments according to the invoices during six month time. Since the process takes more than six months, we ask clients to apply as early as possible.

Processing time

The processing time for MRV applications is 6 months. You must make a personal visit once to Malta.

Download

MPRP Official handbook – download pdf
FAQs – Download pdf

Residency Malta Agency

The Residency Malta Agency is the Government entity responsible for processing of applications and managing and promoting Malta’s residency-by-investment programme. The Agency is consistent in its rigorous efforts to attract quality individuals and families, applying a stringent four-tier due diligence process that ensures the most meticulous of screening.

Application forms

Form MRVP2 – Personal Details
Form MRVP3 – Medical Report and Questionnaire
Form MRVP4 – Dependant Declaration – Adult
Form MRVP4A – Dependant Declaration – Minor
Form MRVP5 – Official Compliance Form
Form MRVP6 – Clearance Form
Form MRVP7 – Additional Dependant
Form MRVP10 – GDPR declaration

Identity Malta Agency Forms

• Form ID1A
• Form ID2
• Form K
• Rental Declaration Form
• Subscriber Agreement (Pages 7 & 8 of Form ID10)

Malta Real Estate

There is high demand for residential and rental properties. The Government has announced economic stimulus measures in Budget 2021 to protect the real estate market in Malta.

The house prices increased by 2.3% during pandemic in Q1 2021 compared to previous year, according to European commission report. A Pwc survey in 2021,  that a significant 58% of the respondents are entertaining plans to purchase property and another 16% are on the lookout to rent property.

Property Taxes

The legal system of Malta does not impose a tax on ownership of property. The property tax structure is very simple. There are no VAT implications on the purchase or sale of any immovable property situated in Malta or Gozo however the property is subject to Stamp Duty which is payable by the purchaser.

• (Seller) Withholding tax – 5% (reduced due to Covid) paid 1% during initial sale agreement and 4% during final transfer
• (Buyer) Stamp duty – 1.5% on first 400K euro

First-time buyers of immovable property will now be exempt from stamp duty on the first €200,000 of the value of the property (previously €175,000). For sale of property in Gozo, there is a reduced rate on stamp duty of 2%, instead of standard rate of 5%.

This is applicable to promises of sale being signed until March 2021 with the final deed of transfer being signed until 31 December 2021.

Inheritance Tax

Causa Mortis relates to the succession of immovable property from a deceased person. The basic rate of duty is 5% on the market value of the property as on date of death.  A reduced rate of 3.5% on the first €175,000 of the value applies for those inheriting a property which is already being used as their sole residence.  There are other exemptions such as when the surviving spouse inherits the share of the deceased spouse of their sole residence.  The children are also exempt from duty when they inherit the residence of their parents. This is applicable to immovable property situated in Malta, irrespective of the place of residence and nationality of the heirs.

Rental Income

The tax on income from rented properties reduced to a flat rate of 15% for both residential and commercial properties. The average rental income from properties is about 6.5%.

FAQs

These are the most common questions asked about Malta Residence scheme. Read more FAQs in pdf

What are the costs for Malta golden visa?

It would cost you all inclusive EUR 100,000 non-refundable plus 10K euro rent per year and agency fee. It is the cheapest golden visa offering permanent residence in Europe’s Schengen area.

Can i invest in real estate?

Yes, you can buy real estate for EUR 300,000 to become a permanent resident in Malta

What is the eligibility criteria?

You must be able to prove that you have EUR 500,000 net assets of which you have EUR 150,000 in liquid assets.

Can i invest in financing Treasury bonds or stocks?

No, this option has been removed under the new MPRP program launching in March 2021.

Can i buy real estate for housing?

Yes, the property must be held for 5 years before selling.

Is Malta in Schengen?

• EU member country: since 1 May 2004
• Currency: Euro area member since 1 January 2008
• Schengen: Schengen area member since 21 December 2007

Can i get Maltese citizenship through golden visa scheme?

Maltese citizenship is very difficult under this scheme through naturalization. Many are still awaiting over 15 years to get citizenship.

Legally, Yes, a foreigner may submit an application for the acquisition of Maltese citizenship by naturalisation after continuously residing in Malta for a minimum period of 5 years. S/he should have resided in Malta throughout the 12 months immediately before the date of application and 4 years out of the preceding 6- year period. S/he has to be knowledgeable in spoken/written English and Maltese, of sound mind and of good conduct. The Minister has the discretion, according to the Law, to grant or refuse the application. It does not, therefore, mean that if such person satisfies the said conditions s/he would automatically be granted citizenship by naturalisation. The Minister’s decision is based on internal policies, whereby amongst other requirements, the number of years could also be a feature in the examination of the relative request.

Do i have to visit Malta for Golden visa?

You only need to visit Malta after Letter of approval is issued (takes 6 months). This is needed to complete all the visa formalities. You can apply for visa at Malta consulates abroad.

Are there any country restrictions?

European Union nationals are not eligible to apply, since the provisions of our regulations themselves exclude them from applying.

All other nationals are eligible, excluding nationals from Afghanistan, Iran and North Korea. In the future, applications from other countries may also be excluded in accordance with Government policies.

Can household staff be included as dependent?

No. Only Main Applicant and his/her family dependents are eligible

Can i take up employment or work?

The MRVP does not entitle beneficiary to any employment licences. He/she still needs to apply for a work permit through normal procedures.

Can applicants work in another EU country under the MRVP?

The MRVP does not grant beneficiary any employment rights in the Schengen Area. Therefore s/he will need to apply for a work permit in the Schengen country according to the provisions of that particular country

Can i appeal if my application is refused?

No. The Board of Approvals’ decision is final and cannot be appealed

Are there any specific tax incentives?

The MRVP doesn’t carry any tax grants and/or incentives. The statutory tax applies, and it is recommended that the advice of a tax consultant be sought.

What type of residence permit issued?

Malta residence card valid for 5 years with unlimited extensions.

The Residence Certificate does not have an expiry date, however the e-Residence Card, will initially be valid for a period of five years – subject to annual monitoring and that the stipulated conditions continue to be met.

There is residence card processing fee applies when a residence card is issued or renewed. The fee is of €27.50 for a one-year time period per person. Hence a card valid for 5 years carries a fee of €137.50.

How long is the residence permit valid for?

There is a difference between residency card and residency certificate.

First the residence certificate does not expire (valid indefinitely)

The residency card, which will reflect the said immigration position, will be initially valid for a period of 5 years, renewable. In cases where a residency card is issued to a minor of less than 14, and the minor turns 14 during the 5-year validity, the expiry date of such minor’s card will fall due one month after his/her 14th birthday. The same applies when dependant turns 18 years of age.

Are there any age limits for parents and grandparents?

parents or grandparents applying be above a certain age have no age threshold.

Can same sex partners apply?

Yes, under MRVP same-sex partners are allowed to apply. In Malta same-sex marriage is recognized.

Are there any physical residence conditions?

None, it is the most straight forward residence scheme

Can i switch to Citizenship by investment scheme?

Yes, if you are approved under MRV, later you can switch to Individual Investor program (IIP) if you want quicker path to citizenship. Remember you can get Maltese citizenship after 5 years of living without donating 650K for IIP.

Any restrictions on investments under this scheme?

You cannot invest in hotels, offices, etc. The Main Applicant should lease or purchase a residential property that is fit to live in (e.g. a house, apartment or maisonette that is finished – i.e. not in shell or semi-finished condition)

How is due diligence carried out on applicants?

Agents and MRVA agency carry out due diligence on the Main Applicant and their dependants takes 2-3 months

Are loans allowed?

Yes

Do i need health insurance coverage?

This is one of the most important requirement under MRV rules. You will need coverage of atleast €30,000 (thirty thousand Euros) minimum. It is important to submit the endorsement letter, or equivalent, clearly listing details of cover, including:

1. List of persons insured
2. Minimum cover per person per annum
3. Covers EU countries
4. Validity of cover has to be of a minimum of 1 years, renewable
5. Not a travel Policy 6. Covers full hospitalisation
7. No exclusions in cover

This you can obtain through an insurance company paying a small price of EUR 200 per year per person.

Can i work under this scheme?

No, main applicant and all family members must apply for separate work permit. Free education for minors only available to MRV applicants only if they have a work permit.

Do i need to visit Malta for biometrics?

Yes, main applicants and all family members need to visit malta for biometric collection. Children under 6 are exempt, also people with disabilities on case by case basis.

Do applicants need to apply for visa?

Malta in general issues two types of visas

• Schengen visa – short stay validity less than 90 days
• National visa –  D visa validity more than 90 days less than a year

Once the Malta MRV agency approves your application, you have to apply for D visa at the nearest malta embassy in your country. You can find the full list here

Are there any age limits to include parents and grandparents?

No age limits

How to apply for residency when i am abroad?

You can apply at Maltese embassy/consulate in your country for D visa (long term visa),  if you are outside schengen area. Once the visa is approved within 30 days come to Malta to collect your residence permit.

If you already have schengen visa, come visit Malta and register at the Identity Malta migration office

Can Malta revoke my residence permit later?

Yes, your residency can be revoked in these cases

• Dont maintain the investment for 5 years
• Dont have a proper accommodation to live  (ie dont rent a place)
• Sell your property within 5 years

Family members also lose their residence cards if the main investors permit is revoked

What documents are required?

1. Covering letter 2. Power of Attorney 3. Form MRVP6 and the biometric data page of main applicant and all dependants over the age of 12 and any/all donors/benefactors 4. A biometrics data page for all dependants under the age of 12 5. Form MRVP1 or Form MRVP4 (declaration dependant) as applicable 6. Verification documents if parent of minor is not an applicant but has signed his/her form 7. Form MRVP2 (personal details) 8. Form MRVP3 (medical report and questionnaire) 9. Evidence of due diligence process 10. Statement of source of funds and wealth 11. Bank statements 12. Evidence of business ownership (if applicable) 13. Evidence of employment (if applicable) 14. International passport/s 15. ID Cards (or jurisdictional equivalent) 16. Residence permits 17. Birth certificates 18. Change of name document/s (if applicable) 19. Military records (if applicable) 20. Marriage certificate 21. Divorce certificate(s) (if applicable) 22. Evidence of residential address abroad 23. Police certificates/certificates of conduct 24. Affidavit of dependency (if applicable) 25. Award of custody/guardianship (if applicable) 26. Other supporting documentation 27. Divider for next applicant with printed name

The full list of documents required is available here

Please note some documents such as birth certificates, change of name certificate,  marriage and divorce certificate require apostille to be accepted and translated if not in english

Official documents/notarial certificates originating in China have to be legalised, meaning that such documents have to be certified by the foreign ministry of China and subsequently have to be certified by either the Maltese Embassy in Beijing or the Maltese Consulate in Shanghai.

Which are official documents?

Official documents are:

1. Birth Certificate
2. Marriage Certificate
3. Divorce Certificate
4. Passport
5. Police Conduct (Original only is accepted)
6. Military Records
7. Award of Custody

• Original Official Documents need to be apostilled/legalised by the government authority of the issuing country.
• A Certified True Copy of an apostilled / legalised original is acceptable. However, if certification is done abroad, an apostille/ legalisaton of the certifier is required. Translations of original or of certified true copies of these official documents need to be apostilled/legalised if done abroad.
• National and international hospital are accepted. No need for an apostille.

What is the validity of residence cards issued to minors?

In cases where a Residence Card is issued to a minor of less than 14 years, and the minor turns 14 within the “normal” 5 year card validity, the expiry date of such minor’s card, will fall due one month after his/her 14th birthday. The same applies when dependant turns 18 years of age.

Can i travel and work in other Schengen states?

Holders of the MRVP residence card may only travel to Schengen countries and for a maximum period of 90 days within a 180 day period. Working is not permitted.

How are translations done accepted?

Translations done abroad have to be apostilled/legalised. Translations done locally do not need to be apostilled/legalised but have to be carried out by a Malta registered translator.

Do adult children reaching 27 years of age automatically lose residence rights?

Yes, when reaching 27 years of age the dependant concerned will lose his/her residence status even if he/she continues to be a dependant of the Beneficiary. A separate application need to be made prior to his/her 27th birthday provided that he/she relinquishes his/her right of residence as a dependant. If he/she is unable to meet the conditions of the programme, any request to remain in Malta shall be considered on the merits of the case and in accordance with national rules and policies prevailing at that time.

Can i renew residence card through maltese embassy abroad?

Only visas can be renewed abroad. Residence Cards cannot be renewed through a Maltese Embassy abroad, has to be done at Identity Malta office in person.