Malta: Benefits of Citizenship and Residence Programs
In 2020, the Maltese government announced the renewal of its citizenship by investment program, which offers investors the opportunity to obtain Maltese citizenship and contribute to Malta’s growing economy. The benefits of Maltese citizenship include freedom of movement and residence in any of the EU member countries, as well as a free local education system, a high prosperity index, and one of the world’s most powerful visa-free travel systems, including the United States of America.
Maltese Citizenship for Exceptional Services by Direct Investment:
Grants citizenship to HNWIs through non-refundable investment in Malta’s economic development.
Two options: from €750,000 investment for citizenship in 14.5-18 months, or €600,000 for citizenship in 36 months.
Also requires leasing a property (€16,000/year) or purchasing a property (€700,000) for at least 5 years.
Benefits include visa-free travel to 186 countries, the right to live and work in the EU, as well as Switzerland, Liechtenstein, Norway and Iceland, the citizenship which is inherited by future generations and other benefits.
Malta Permanent Residence Program (MPRP):
Based on property purchase/rental and government contributions.
Requires renting (€10,000/year) or purchasing property (€300,000), and a government contribution (€28,000 or €58,000).
Benefits include permanent residency status in Malta, Schengen visa-free travel, eligibility for dependents, and the possibility of work permits and special tax status.
Malta Global Residency Program (GRP):
Allows third-country nationals (excluding EU/EEA and Swiss) to obtain special tax status.
Benefits include special tax rates, the right to reside in Malta, Schengen visa-free travel, and eligibility for dependents.
Participants are taxed at 15% on foreign income remitted to Malta, with a minimum annual tax of €15,000.
Advantages of Malta’s Tax System
Malta provides a secure and beneficial tax framework for its non-domiciled residents. This framework allows individuals to be taxed only on income generated within Malta and on foreign income that is brought into the country. Key advantages of Malta’s non-dom tax regime include:
No Capital Gains Tax on Foreign Assets: Even if these gains are brought into Malta, they remain exempt from capital gains tax.
No Inheritance or Wealth Taxes: This makes Malta an attractive option for estate planning and asset protection.
No Tax on Foreign Dividends: Dividends received from foreign sources are not taxed unless they are brought into Malta.
We are experts in project internationalization. If you are interested in learning more about investment opportunities in Malta, please do not hesitate to contact us.
Author. Ramiro de Iturralde
