By virtue of Legal Notice Legal Notice 288 of 2015 the Government of the Republic of Malta has introduced the Malta Residence and Visa Programme (MRVP), whereby Third Country Nationals and their dependents who are willing to bring investment to Malta, are granted Maltese residency and may reside, settle and stay in Malta indefinitely, as well as travel within the Schengen area without the need of applying for a visa.
Eligibility for the Malta Residency by Investment Programme
For the main applicant to be issued a certificate of residency under the Malta Golden Visa Programme:
- The individual must be at least 18 years of age;
- The individual must meet the application requirements;
- The individual must be a third-country national;
- The individual must be in possession of a valid travel document;
- The individual must be in possession of a health insurance policy;
- The individual must be in possession of an annual income of at least €100,000 arising outside of Malta or has in his possession capital of not less than €500,000; and
- The individual’s application is not deemed to be against public interest.
Individuals subject to the Global Residence Programme (GRP) are also entitled to apply for the issuance of a certificate under the MRV programme, subject to satisfying all the additional eligibility requirements.
Dependants who may be included within the MRVP application of the main applicant are the following:
- The spouse of the main applicant in a monogamous marriage or in another relationship having the same or a similar status to marriage;
- The children, or adopted children of the main applicant or the spouse, under the age of 18;
- The adult children, or adopted adult children of the main applicant or the spouse, over the age of 18, who at the time of the application is unmarried, not economically, active and is principally dependant on the main applicant; and
- The parent or grandparent of the main applicant or the spouse, who at the time of the application is not economically, active and is principally dependant on the main applicant.
Qualifications for the Malta Residency by Investment
The main applicant must satisfy the following three-tier structure:
- Pay a contribution of €30,000 (of which, €5,500 is a non-refundable administrative fee and must be paid upon submitting the relevant application to the Authority).
- The €30,000 contribution covers the main applicant, spouse, and children of the main applicant/spouse at application stage.
- A further contribution of €5,000 is applicable for every parent or grandparent of the main applicant or spouse at application stage.
Invest an initial value of €250,000 in a form as determined, from time to time, by Identity Malta. The qualifying investment is to be held for a minimum period of 5 years from the date of the issuance of the certificate.
- Purchase property at a consideration of not less than €320,000 for a property situated in the North of Malta, or €270,000 for a property situated in Gozo or the South of Malta; or
- Rent a property of not less than €12,000 per annum for a property situated in the North of Malta, or €10,000 for a property situated in Gozo or in the South of Malta.
The qualifying property is to be held for a minimum period of 5 years from the date of the issuance of the certificate.
Submission of Application
An individual wishing to apply and benefit from the Malta Residency by Investment Programme is obliged to do so through a registered approved agent or a registered accredited person. CSB Group is accredited with Identity Malta and may thus assist individuals and handle and submit MRVP applications.
The application is to be submitted to Identity Malta subject to their requirements, forms and documentation, together with the non-refundable fee of €5,500.
Once approval of the application has been acquired, Identity Malta shall determine this in writing and the individual may proceed with putting the Qualifications in the table above in place.
Applicants admitted to the MRVP will be furnished with a certificate, which is also considered to be a residence permit. This certificate will entitle the beneficiary and his registered dependents to reside, settle and stay in Malta indefinitely. Since Malta is part of the Schengen Area Agreement, individuals partaking in the Golden Visa Programme will also be able to travel freely within the Schengen area, without the need of applying for a visa.
The certificate issued by Identity Malta shall be subject to annual review for the first five years from its issue, and every five years thereafter.
Taxation of Maltese Residents
The basis of taxation under the Malta tax system is based on residence and domicile. Maltese tax residents who are not domiciled in Malta are taxable on remittance basis are taxable only on foreign-sourced income remitted to Malta and only to the extent remitted. Income and capital gains arising out of Malta will be subject to tax in Malta at the applicable personal income tax rates.
Capital gains arising out of Malta fall outside the scope of Maltese tax whether remitted into Malta or otherwise.
Long Term Residence
In terms of Legal Notice No. 278 of 2006 entitled: the Status of Long-Term Residents (Third country nationals) Regulations 2006, a residence permit may be issued to persons who are legally residing in Malta and who qualify for such status, valid for a period of five (5) years but automatically renewable upon application. Through the MRVP, the beneficiary and his/her dependants may obtain long-term residence, subject to the respective requirements being satisfied.