Malta
Malta Individual Investor Programme
The amendment lead to the enactment of LN 47 of 2014, which established the MIIP. Under the programme, citizenship may be granted to wealthy foreign individuals that contribute economically and invest in the country.
investment
Donation to the National Development Fund + Investment in Government Bonds + Investment in Real Estate
- €650,000 non-refundable donation to the National Development Fund, for the main applicant, and
- €25,000 for the spouse and each minor child.
- €55,000 for each unmarried child between 18-26 y.o., and for each dependent parent over 55 y.o.
And - €150,000 Investment in bonds or shares approved by the Government of Malta. Investment must be kept for at least five years. And
- €350,000 Investment in Maltese Real Estate, and keep it for at least five years, or
- €16,000 annual property rent with a five-year contract.
Total Minimum Cash Outlay for a family with a minor child: €1,200,000* (real estate investment) Or €930,000* (5-year property rent). *Excluding Fees (See fees below).
The names of all persons that have become Maltese citizens are published in the Government Gazette.
Physical Residency Requirement
Oath of allegiance and the issuance of a Certificate of Naturalization will be done after 1 year from the effective date of the beginning of a genuine connection with Malta. This requirement was the basis for the approval of the Malta Investor Individual Program by the European Commission.
To prove the genuine link it is required to be a resident in Malta for one year and provide evidence of the link, such as business activity, club membership, professional associations, sponsorship or local philanthropy. The residence requirement is only mandatory for the main applicant.
To be a Maltese resident, applicant should apply for an E-Residency Card, which will entitle applicants to set a residence status in Malta and travel freely thorough the Schengen Area. This step is mandatory in the IIP application process.
Requirements for E-Residency Card:
- Visit Malta to apply for the card and submit biometric data.
- Proof of economic self-sufficiency.
- Proof of Global Health Insurance.
- Residential address in Malta.
- Payment of €5,000 (and €1,000 administrative fee for each dependent) on account from the €10,000 non-refundable deposit on the National Development and Social Funds contribution.
Our company and its partners in Malta will assist you to successfully fulfill this requirement.
Requirements
- Genuine Link with Malta (1-year residency). See details above.
- Main applicant must be at least 18 years old.
- Evidence of holding comprehensive health insurance.
- Main applicant and dependents must be in good health and not have any communicable disease, and do not carry a disease requiring treatment representing a burden on the Maltese health system.
- Fit and Proper Test. A four-tier due diligence process will be conducted to certify that applicants are in good standing and repute.
- Original Police certificate with clean criminal record. Required for jurisdictions where the applicant has resided a cumulative period of 6 (even in intermittent periods) over the last 10 years. Interpol, International Criminal Court and other authority checking will be conducted.
- Not to be likely to cause disrepute to Malta.
- Not to be denied a Visa to a country where Malta has visa-free access.
- Not to be a potential national security threat.
- An undertaking to remit the total required contribution.
- An undertaking to purchase or rent property in Malta.
- An undertaking to make investment in Government financial instruments.
Application Forms and supporting documents shall be done in English or accompanied by an authenticated translation.
Revocation of Maltese Citizenship in the case of:
- Citizenship acquired by means of fraud, false representation or false documentation.
- Unlawfully trading or communicating or associating with an enemy or any business linked to an enemy in a war.
- Act or speech in a disloyal or disaffected way towards the President or the Government of Malta.
Restricted Nationalities
Afghanistan, Iran, North Korea
dual citizenship
Dual citizenship is recognized in Malta. You are not required to renounce your previous nationality to become a citizen of Malta.
Documents Required
- Statement of Source of Funds
- Bank Statement
- Undertaking to remit total contribution
- Undertaking to purchase Government Financial Instruments
- Undertaking to rent property
- Real estate sales and purchase agreement
- Certified copy of passport
- Evidence of Health Insurance
- Original Police Clearance Certificate
- Original or Certified copy of Birth Certificate (if applicable)
- Original or Certified copy of Marriage Certificate (if applicable)
- Photograph and Signature Certificate
- Medical Certificate
- Six passport-size photos
- Original Bank Reference Letter (Not older than 6 month)
- Proof of payment of nonrefundable processing and due diligence fees
- Investment Confirmation / Escrow agreement
- dual citizenship Yes
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required Yes
- Language skills required No
- Interview required No
- Investment Single €750,000
- Investment Family 4 €900,000
- Minimum annual income -
- Time to citizenship 12
- Time to permanent residency
- Visa-free countries 188
- Financing available No
Benefits
citizenship benefits
Country details
Its capital is Valletta, although its most populated urban center is Birkirkara, with over 22,000 inhabitants. Its official languages are Maltese and English. Since 2008 its legal tender currency is the Euro (EUR).
Visa Free Travel
Taxes
Malta levies personal income taxes on a residence and domicile basis. An individual is deemed to be a tax resident if he or she spends more than half year in the country, and is deemed to be domiciled in Malta if their permanent home is in Malta. Becoming a Maltese citizen does not automatically make you a tax resident or deemed to be domiciled in Malta.
Maltese ordinarily resident and domiciled in Malta are subject to personal income tax on their worldwide income and capital gains.
Maltese ordinarily resident and not domiciled in Malta are taxed on their income and capital gains arising in Malta and on income arising outside Malta that is remitted to Malta.
This means that if you are a Maltese resident non-domiciled (permanent home) in Malta, only your Maltese-source income and capital gains and your income remitted to Malta may be subject to tax. Foreign-source income not remitted and capital gains (remitted or not) may be tax-exempt.
Non-residents are only taxed on their income and capital gains from Malta.
Personal income tax rates are progressive from 0% to 30%. Capital Gains are taxable income. However, gains from the disposal of immovable property are taxed at lower rates of 8%, 10% or 12% depending on the circumstances. Property purchased under the citizenship by investment program can be sold tax-exempt after the mandatory 5-year period, provided that the property is held for a period of 3 years as the owner’s ordinary residence.
In Malta, there are no inheritance, real property, net wealth and municipal taxes. There is a stamp duty applied on certain transfers such as real property or securities. Value-added tax is 18%.
Malta is the jurisdiction chosen by many international companies and holding companies, to establish their headquarters and do business in the European Union.
As of December 2018, Malta enacted the EU ATAD rules, which include a rule on Controlled Foreign Companies (CFCs) for the first time.
Although its standard corporate tax rate is 35 percent, in practice there is a system of tax credits and refunds for shareholders reducing to effective tax rates of between 0 and 10 percent. Learn more about Malta’s Corporate Taxation, Legal Framework and tax treaties at incorporations.io/malta.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax No
- Transfer tax No
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 183
- Personal income tax rate 30%
- Capital Gains tax rate 12%
- Investment income tax rate 15%
- Territorial taxation Yes