Malta has several different programmes that offer applicants citizenship or residence based on their fulfilment of specific criteria and passing a stringent four-tier due diligence process. One of these options is the Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment (MEIN). This initiative facilitates the acquisition of citizenship for applicants and their dependents, following the satisfactory meeting of certain requirements such as passing due diligence and making specific direct investments in Malta. It is geared towards reputable and successful individuals who are serious about investing in Malta and becoming Maltese citizens.
Another popular programme is the Malta Permanent Residence Programme, known as the MPRP. or the Malta residency by investment. It provides third-country nationals with the right to reside, settle, and stay in Malta. To achieve this, they must make several financial investments and meet the obligations and requirements laid down by the Maltese authorities. The MPRP, also known as the Malta Golden Visa Programme, does not grant citizenship nor is it a part of the path towards citizenship. Instead, it gives the recipient the right to reside in Malta without additional residence documentation permanently.
A Comparison between MEIN and MPRP
Investment required
Mein
A government contribution of
a) €650,000 for the main applicant and €50,000 for each dependent if applying after 36 months residency or
b) €750,000 plus €50,000 for each dependent if applying after a year’s residency or before 36 months.
An investment in property, either with a minimum value of €700,000 or a lease with an annual lease value of €16,000 retained for a minimum of five years.
A donation of €10,000 to a registered non-governmental organisation.
MPRP
Purchase of a property with a minimum value of €300,000 in the south or Gozo or €350,000 elsewhere in the country, or rental of a property with an annual lease value of €10,000 in the south or Gozo, or €12,000 elsewhere.
In the case of property purchase, a €28,000 government contribution is required, plus €7,500 for any additional parent or grandparent of the applicant or their spouse. If the property is leased, €58,000 plus €7,500 for each parent or grandparent of the applicant or their spouse.
A €2000 donation to a registered and approved NGO or charity.
Fees
Mein
There are fees of €10,000 for the principal applicant, €1000 per dependent and €27.50 for each residence card.
For due diligence, there are fees of €15,000 for the principal applicant and €10,000 for each adult dependent. If the applicant is sponsored, there is a due diligence fee of €15,000.
There is an administrative fee of €1000 per applicant.
After eligibility has been approved, the applicant must pay an administrative fee of €500 per applicant.
MPRP
€40,000 per application, of which €10,000 to be paid upfront and €30,000 following approval.
Eligibility
Mein
In addition to the required investments, applicants must pass a stringent four-tier due diligence process. This will be extended to all dependents involved in the process. Their background will be checked along with press, media and any criminal or court proceedings. As the Maltese authorities insist on all applicants being reputable, strict criteria are followed.
Swearing an Oath of Allegiance to the Republic of Malta.
Declaring they are fit and proper and deserving of holding Maltese citizenship.
Providing information on source of funds, due diligence, health, and genuine links to Malta.
Fulfilling the necessary residency requirements prior to application.
MPRP
A minimum net worth of €500,000 or an annual income of €100,000 from outside Malta.
Non-EU national or the spouse, partner, child, economically dependent child, parent, or grandparent of the principal applicant.
In addition to the required investments, applicants must pass a stringent four-tier due diligence process. This will be extended to all dependents involved in the process. Their background will be checked along with press and media and any criminal or court proceedings. Strict criteria is followed as the Maltese authorities insist on all applicants being reputable.
Declaring they are fit and proper persons.
Providing information on the source of funds, due diligence, and health.
Validity
Mein
Once citizenship is acquired, it does not expire or terminate and it can be passed to future generations. There are cases where citizenship is revoked in cases where the holder is found to have acquired it through fraudulent or illegal means or has brought Malta into disrepute. This remains at the discretion of the Maltese authorities.
MPRP
The MPRP is permanent as long as you continue to satisfy all the requirements, including the investment (for at least five years) and other criteria. Discretion remains in the hands of the Maltese authorities, and it is reviewed every five years.
Tax Consequences
Malta is a party to many double taxation treaties. It has a corporate tax rate of 35% with a full imputation system available under certain circumstances. Residents are subject to a tax rate between 0% and 35%, depending on value.
Mein
The MEIN does not offer any specific tax benefits to applicants.
MPRP
The MPRP does not offer any specific tax benefits to applicants.
What are the key differences between the two?
There are differences between MEIN and MPRP. One of the main differences are the size and methods of investment vary between the two programmes, as do the requirements, obligations and application process. Besides, the main and most notable difference is that the MPRP is a residence programme whereas the MEIN grants successful applicants Maltese citizenship
Benefits of MEIN
There are many benefits to MEIN, foremost the right to live, work, and study in Malta, which is a fully-fledged EU member state and has a stable, prosperous society. Holders of Maltese citizenship can enjoy visa-free travel to over 170 countries and the right to work and study in the EU. Citizenship can also be passed onto future generations, making it a sound investment for your family’s future. In addition, Maltese citizens enjoy an excellent quality of life in an EU member state, just a 1-3 hours flight from all of Europe's major financial capitals. Lastly, investing in property in Malta is a wise move as the economy grows, fuelled by booming fintech businesses and increasing interest from foreign investors.
Benefits of MPRP
The right to live and stay in a stable, economically sound, fully-fledged EU member state.
Visa-free travel in the Schengen Area for 90 days out of every 180 days.
Diversified investment in Malta’s flourishing real-estate sector.
Ability to include up to four generations in the application.
The chance to work and establish a business in Malta or the EU.
Frequently Asked Questions
Is Malta a Schengen country?
Malta has been a member of the EU since 2004, and the Schengen Area since the end of 2007. The Schengen Area or zone is a region comprising 26 European countries that have agreed to abolish the use of passports and other forms of border control at their borders. When it comes to international travel, the Schengen Area functions as one large jurisdiction allowing the free passage of people (as long as they are citizens or residents of a Schengen country) and goods.
Members comprise 22 EU member states and four European Free Trade Association states including Iceland, Norway, Switzerland, and Liechtenstein. EU states Bulgaria, Croatia, Cyprus and Romania will join the area in the future while Ireland has its own set of visa rules. The UK is not a member of the Schengen Zone.
Does Malta allow dual citizenship?
As of February 2000, all restrictions on holding dual or multiple citizenships were lifted. This meant that any individual could acquire and retain Maltese citizenship along with another citizenship(s) with no restrictions. It is no longer required to renounce any non-Maltese citizenship to hold Maltese citizenship.
How can CSB Group help?
With a history and tradition in Malta, CSB Group’s goal is to provide top-notch services to Private Clients worldwide. You can get in touch with us at [email protected] where one of our consultants will be able to guide you further.
CSB Group is registered as an Accredited Agent with the Residency Malta Agency, with License Number RES-CSBI.
