Citizenship by Investment in Malta – Frequently Asked Questions
Malta Citizenship by Investment (also known as the Malta Individual Investor Program) awards the investor, and any family members on the application, Maltese Citizenship for life that can be passed onto future generations. With Malta Citizenship, the applicant and family members will receive a Malta passport, and all the benefits it brings, and a certificate of naturalisation.
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However, the Malta Citizenship by Investment program is a very exclusive scheme that only awards citizenship to those who pass not only intense due diligence tests, but also those who can bring a positive investment to Malta. Therefore, this raises many questions to individuals considering this program.
What are the Requirements to be Eligible for the Malta Individual Investor Programme?
In the Individual Investor Programme of the Republic of Malta Regulations, 2014 [Cap.188 LN 47 of 2014] it states that the investor must meet the below requirements:
- At least eighteen years of age;
- No criminal record supported by a police certificate;
- Contributes to the National Development and Social Fund;
- Provide proof of title to a residential property in Malta;
- Invests, amongst others, in local stocks, bonds, debentures or special purpose vehicles or other investment vehicles as may be identified from time to time by MIIPA;
- Not benefiting from any other Malta Residence Programs;
- A global health insurance policy must cover all applicants;
- All applicants must not be suffering from any contagious disease and that they are otherwise in good health.
What is the Cost of the Citizenship by Investment Program?
The cost of the Malta Citizenship by Investment program split’s into three parts.
- Contribution to the National Development and Social Fund (NDSF)
- Residential Property minimum requirements
- Investments in local securities
- Due-diligence fees
The fees under the Individual Investor Program are also payable per applicant as per below;
Contribution to the NDSF Requirements:
- €650,000 for the Main Applicant
- €25,000 for the Spouse
- €25,000 for each child below 18 years of age
- €50,000 for each dependent unmarried child between 18 and 26 years of age
- €50,000 for each dependent parent above 55 years of age
Residential Property Minimum Requirements
Applicants provide proof of residence in Malta and to provide evidence of title to a residential property in Malta. As per the guidelines, applicants can either:
- Rent/Lease a property for a minimum of €16,000 per annum
- Purchase a property for a minimum of €350,000
Furthermore, you must hold this property for a minimum of five years.
Investments in Local Securities
The main applicant must invest €150,000 in local stocks, bonds, debentures or special purpose vehicles or other investment vehicles as may be identified from time to time by MIIPA;
Due Diligence Fees:
- €7,500 for the Main Applicant
- €5,000 for the Spouse
- €3,000 for each child between 13 and 18 years of age
- €5,000 for each dependent unmarried child between 18 and 26 years of age
- €5,000 for each dependent parent above 55 years of age
What are the Benefits of Malta Citizenship
For investors looking at Maltese Citizenship, the Malta passport offers many fantastic rewards for those who are eligible to apply for one. Here are our top six benefits of Malta Citizenship:
- Visa-Free Travel Opportunites – Malta is currently the 7th strongest passport in the world. With a Malta passport, you can now travel to 183 countries visa-free.
- The right to live and work in all EU countries – Malta joined the EU on 1st May 2004. Therefore all Maltese nationals can travel and work freely across all EU countries, including the UK, Germany, France, Italy and Spain.
- Maintain Dual Citizenship – Malta recognised dual citizenship; therefore, you would not have to renounce your current countries citizenship.
- Low Tax Jurisdiction – Malta’s maximum income tax rate is set at 35% on income above €60,000 per annum. Compared to other EU countires, this is much lower:
- Austria – 50% on income above €90,000
- Denmark – 56.5% on income above €74,695 (DKK 558,043)
- France – 41% on income above €70,830
- Germany – 42% on income above €54,949
- Italy – 43% on income above €75,000
- Portugal – 50.5% on income above €80,640
- Spain – 43% on income above €53,407.20
- The Netherlands – 51.75% on income above €68,508
- The UK – 40% on income above £50,000
- Malta Citizenship is for life – Once you successfully become a naturalised Maltese citizen, you hold it for life. Moreover, Malta Citizenship can also be passed down to future generations, therefore improving your future generations life.
- Malta Education and Healthcare facilities – Maltese citizens, enjoy free state of the art healthcare as well as free education. The University of Malta is publicly founded and is free for Maltese nationals (non-EU students tuition is €20,000). Maltese citizens also enjoy free medical services such as prescriptions, pregnancy and childbirth.
What is the National Development and Social Fund?
The National Development and Social Fund (NDSF) is a Government Agency that was set up under the Maltese Citizenship Act Cap 188. The NDSF manage and administer the contributions made through the Individual Investor Programme (IIP).
The NDSF receives 70% of contributions received by Identity Malta from the Maltese Citizenship by Investment Programme and used in the public interest, among other things, for the improvement of:
- Social purposes
- Justice and the rule of law
- Employment initiatives
- The environment
- Public health
The additional 30% of the contribution is placed in a discretionary portfolio. The overall objective of the discretionary portfolio is the preservation of capital and the re-investment of investment returns over the long term.
For more information, please see the NDSF Annual Report and Financial Statements published in December 2018.
How long does the Malta Individual Investor Program process take?
The process, on average, takes between six-months to two-years. However, from our experience in dealing with several MIIP cases, it typically takes twelve-months to process the majority of cases.
It is also important to note that the applicant to the individual investor program must take up residence for twelve-months before being naturalised as a Maltese citizen.
What is the Application Process for the Malta Individual Investor Program?
- Talk with an IIP Approved Agent who can consult you on the stages documentation as well as prepare you and your family for the application process.
- Apply for Malta Residency. For you to successfully start the citizenship application, you must apply for Malta Residency. Your Approved Agent will take you through the required paperwork and permits. At this stage, you must also acquire your property in Malta.
- Submit the Citizenship Application Form. Once you receive your residency card, your approved agent will submit the citizenship application with all the supporting evidence.
- Initial Payment. Payments due at this stage will be an initial deposit of €10,000 from the €650,000 amongst the due diligence fees and any passport fees. If the board approved your application and formalised through a recommendation for Ministerial approval, further risk management database checks are conducted.
- Letter of Approval in Principle – Typically 120 days from the initial payment you will find out if you have been successful. Either:
- You will receive your letter of approval in principle,
- If you have been rejected, unfortunately, the process will end, and the residency card is revoked within one month.
- Within four months from the date of the letter of approval in principle, the Main Applicant must provide proof that the contractual undertakings to meet:
- Property Requirments
- Local Investment Requirments
- Health Insurance Policies
- Receipt of your contribution to the National Development and Social Fund
- If all the relevant requirements have been satisfied throughout the Malta Citizenship by Investment process, you will receive a letter of invitation to arrange a suitable appointment for the applicants to take the Oath of Allegiance
- After the Oath of allegiance has been taken, the certificate of naturalisation will be issued, and Maltese passport(s) can then be formally released to complete the application process.
Can you get Denied/ Rejected for the Malta Citizenship by Investment Program?
In simple terms, yes. Malta Citizenship by Investment is a very exclusive programme designed only to accept the best individuals into Malta. However, this typically only occurs if the applicant:
- Has a criminal record
- Is a threat to national security
- Submits a false application
- Uncertain or illegitimate source of wealth
- The applicant has been rejected or denied a visa by a country with ties to Malta.
Therefore, we suggest choosing an Approved Agent who does transparent and ethical due-diligence on their client before the application takes place.
What is the best Citizenship by Investment Programme in the world?
Currently, there is thirteen Citizenship by Investment programs active around the world.
- Antigua and Barbuda (US$100,000)
- Austria (€2,000,000)
- Bulgaria (€512,000)
- Cyprus (€2,500,000)
- Dominica (US$100,000)
- Grenada (US$150,000)
- Malta (€1,150,000)
- Moldova (€100,000)
- Montenegro (€350,000)
- St. Kitts and Nevis (US$150,000)
- St. Lucia (US$100,000)
- Turkey (US$250,000)
- Vanuatu (US$160,000)
Each programme has its advantages and disadvantages. However, what we suggest at Papilio Services is first to decide what your budget its. Secondly, determine what is most important about gaining a second passport. Here are a few ideas:
- Freedom of Movement
- Better Travel Opportunities
- Plan B with Second Citizenship
- Economic Stability
- Business Opportunities
- Physical Safety
- Child Education
- Family Legacy with Second Citizenship
- Tax Efficiency with Second Citizenship
- Better Healthcare Facilities
- Status Symbol & Lifestyle Change
For more information on getting a second passport and choosing the best citizenship by investment program visit an excellent website Worldwide Resident who make a comparison on the best programs for global investors.
Papilio Services Limited – Approved Agents
Are you considering Malta Citizenship by Investment? Papilio Services can help as we are approved agents through Identity Malta we can assist you and your family with the residence application through to the issuance of the Malta Passports.
Contact us to arrange a no-obligation consultation through email firstname.lastname@example.org or call us directly +356 2122 7553.