Malta provides an opportunity to obtain second citizenship in return for investments and offers excellent business opportunities. No wonder so many non-EU investors seek this country’s Golden Visa program.
With a stable economy, investor-friendly climate, and safe and comfortable living conditions, Malta is considered one of the best countries in the world for life and investment.
The most pleasing way to access the country’s benefits is to obtain the Malta Golden Visa. The program designed for it provides an opportunity to get citizenship in exchange for investments. So, for example, you can invest in property in Malta.
What are Malta’s investment opportunities?
The Maltese Islands, located south of Italian Sicily, are on trade routes from Asia to Europe and Africa to Europe. As a result, it has a well-developed maritime logistics business and financial services for various companies.
More than 1,2 million tourists visit the country annually. Tourism accounts for 35% of the country’s GDP, and most real estate here is rented apartments. So, catering to tourists is a whole industry, where almost any competently organized enterprise is considered profitable.
Investors find it profitable to invest in Malta’s businesses for several reasons:
- Malta is among the most economically developed and politically stable states. As a result, the country overcame the complex global crisis of 2008-2009 with minimal losses. In 2020, Malta was given an A or A+ rating by rating agencies despite the severe economic impact of the pandemic.
- With representative offices of well-known corporations and large companies, modern infrastructure, and a service sector, Malta is considered an international business center.
- The government provides business support programs and offers tax benefits to its residents.
- Malta is one of the safest countries in the EU regarding crime.
- The second nationality is allowed in Malta. Therefore, renouncing your first citizenship is unnecessary when obtaining Maltese citizenship.
It is just a small list that cannot contain all the Malta investment opportunities.
Features of the tax system
The Maltese tax system is relatively loyal. For example, a company in Malta gets back 6/7 of the tax paid if the dividends go to property owners. Thus, with the official corporate tax rate of 35%, Maltese companies expend only 5%. However, in the case of passive income or license payments, the refund is 5/7; accordingly, the pure rate is 10%.
How to start a business in Malta?
The Maltese Commercial Code gives anyone, including foreigners, the right to set up a business in their name or as a legal entity.
Three legal and organizational forms of business entity permitted in Malta:
- Private Limited Company
- Partnership with unlimited liability
- Limited Liability Partnership
To open a business in Malta, you must register the Articles of Association with the Malta Revenue Authority and pay a registration fee.
It usually takes 1-2 weeks to register a company. By this time, the company must register an office in Malta.
Who can get Malta citizenship?
Non-EU entrepreneurs can get citizenship by investing in Malta. The new program — Malta Naturalisation for Exceptional Services by Direct Investment — was launched in 2020.
It is possible to become a citizen of Malta after 1 or 3 years of obtaining a residence permit.
The basic requirements for an investor are as follows:
- Over 18 years of age;
- Without a criminal record or criminal prosecution;
- No sanctions;
- No refused visas in countries that have a visa-free regime with Malta;
- Able to prove the legality of income.
The family members of the applicant can also benefit from the program:
- Spouse;
- Financially dependent children under 28 years old;
- Parents over the age of 55.
All family members included in the application and over 16 years of age must submit original certificates of criminal records from:
- Each country where the person has resided for six months or more, during the last ten years before the application.
- All countries where the applicants and their family members have citizenship.
Every application for Maltese citizenship by naturalization through direct investment is thoroughly checked and undergoes a four-tier Due Diligence process.
The check fee is EUR 15,000 for the applicant and EUR 10,000 for each dependent over 12.
According to the Immigrant Invest agency representative Zlata Erlach, no interaction of the investor with the Maltese public authorities without an accredited agent is allowed.
According to the new rules, the Malta citizenship by investment program has limits and grants citizenship to no more than 400 applicants annually. It will be closed once 1,500 applicants have obtained Maltese citizenship and passport.
What are the investment requirements?
As mentioned above, the first step to citizenship is to get a residence permit. The easiest way is with the Malta Residency by Investment program.
There are two ways to become a resident:
- The first option requires the payment of a EUR 68,000 government contribution for the property purchase of EUR 300,000 or 350,000 (depending on the region).
- The second option requires a EUR 98,000 charitable donation plus rental property of EUR 10,000 or 12,000 (varies by region).
The minimum investment or rental period is five years.
The next step is obtaining citizenship. Requirements for obtaining Maltese citizenship through investment are as follows.
- Direct investment in the economic and social development of the country.
- EUR 600,000 if the applicant and family members have been residents in Malta for 36 months before the acquisition of citizenship.
- EUR 750,000 if the investor has been a resident for 12 months.
Additionally, the investor must pay EUR 50,000 for each dependent family member included in the application.
Note: The direct investment is non-refundable.
- Purchase or rental of property in Malta
- The purchase of residential property worth at least EUR 700 000.
- Rental of residential property with a value of EUR 16 000 per year for five years.
It is prohibited to sublet the leased property to third parties.
The investor must retain ownership of the property or have a valid lease contract for a minimum of five years from the date of obtaining the citizenship certificate.
Also, the investor must make EUR 10,000 charitable donations to non-governmental organizations operating in Malta and approved by Government Agency.
What are the advantages of Maltese citizenship?
Malta’s citizenship by investment gives plenty of benefits. The most significant ones are as follows:
- Maltese citizens can travel without visas to 185 countries, including the United States, Canada, Great Britain, Japan, Hong Kong, and Singapore.
- The new status brings all rights and freedoms of an EU citizen.
- With Maltese citizenship, education in EU schools and universities is cheaper.
- Maltese citizens take out health insurance, covering examinations and treatment in good clinics.
- With Maltese citizenship, you can open a company in any country in the European Union. It will help to bring the company to the international market and improve your business reputation.
