Malta residence permit program
To date, Malta is a reliable, well-organized country that maintains military neutrality and has been an official member of the European Union since 2004. Unlike many other international financial and business centers, Malta has established itself as a stable, predictable and safe jurisdiction.
The Republic of Malta consists of three islands: Malta, Gozo and Comino. The population is about 400 thousand people. The official languages of the country are Maltese (official) and English. The attractiveness of Malta is justified by the mild climate, low crime rate, as well as a stable political and economic situation.
The Malta Residence and Visa Program (MRVP) was launched in 2015 under the Immigration Act. Third-country nationals who are not citizens of the European Union, the European Economic Area or Switzerland, as well as members of their families, are eligible to participate. The main condition for obtaining the right to reside is investment in the economic development of the state or the fulfillment of a number of qualification requirements.
Terms of participation in the program and required documents
Applicant for the program must be at least 18 years of age. In addition, it is necessary to provide an affidavit - a written commitment that, since the date of application, the income is at least 100,000 euros per year, or that the personal capital at the moment is at least 500,000 euros.
The conditions for obtaining a residence permit in Malta under the MRVP program are:
- Investment in government bonds in the amount of 250,000 euros (bonds have a maturity of at least 5 years).
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Buying or renting real estate:
- purchase of real estate worth at least 320,000 euros (for the South of Malta and Gozo - at least 270,000 euros) with retention of ownership for at least 5 years;
- rental of real estate with a rent of at least 120,000 euros per year (for the South of Malta and Gozo - at least 10,000 euros per year) for a period of at least 5 years.
- Payment of a non-refundable government fee of EUR 30,000 (total for the applicant, spouse and children).
After 5 years, the purchased property and government bonds are allowed to be sold. But to extend the residence permit, you need an address of residence in Malta, that is, you will have to rent a new residential property. Another obligation of the main applicant and dependent persons is to provide documents on the absence of a criminal record and undergo a medical examination. You also have to take out a health insurance policy, which covers the entire European Union.
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The main applicant is also required to sign an affidavit of financial support for all dependents over the age of 18 included in the application.
Procedure and terms of consideration
The requirements for the package of documents are standard, the procedure for reviewing documents is transparent. A non-refundable deposit of EUR 5,500 must be paid along with the application. The rest of the fee is paid minus the deposit already paid. After the strictest due diligence checks, the applicant will be asked to make an investment, and then a certificate of permanent residence in Malta will be issued. This document is a legal residence permit, confirming the right to stay and reside in the country.
During the first 5 years, the holder of a residence permit will be required to undergo an annual check for compliance with a number of requirements. Since July 2017, the obligation of program participants to spend at least 6 consecutive months outside the country has been abolished. They will also be able to apply for a long-term residence permit and citizenship of Malta, subject to certain conditions. There is no minimum actual residency requirement for participants in Malta.
Taxation
Individuals who are tax residents and domiciled in Malta are liable to pay tax on all worldwide income. Personal income tax (PIT) is calculated on a progressive scale with a maximum rate of up to 35%. Persons who are resident in Malta (but not domiciled) pay taxes on income received in Malta, as well as income received outside the country and transferred to its territory (except for capital gains). The amount of the tax rate depends on the tax status of the person.
Inheritance and gifts are not taxed in Malta, unlike capital gains from asset transactions (mainly real estate and stock transactions). There is no capital gains tax on real estate transactions if the property was owned and used as the main residence during the 3 years prior to the transfer, and also if the transfer of such property occurs within 12 months after its release.
A progressive scale with a maximum rate of up to 35% on capital gains applies if the property is sold within the first 12 months of ownership; rate of 12% of the sale - if the transfer of ownership occurs after the first 12 months of ownership. Tax at a rate of 12% is not charged if the owner of the property is not a resident of Malta. The standard rate of value added tax in Malta is 18%, corporate income tax - 35%. For non-resident property owners or persons not domiciled in Malta, there are special tax incentives.
Malta has concluded double tax treaties with over 60 jurisdictions. A number of agreements are still at the signing stage.
The main advantages of obtaining a residence permit in Malta:
- The right to reside in a politically neutral, socially secure and stable EU country.
- Free visa-free entry to the countries of the Schengen area.
- No minimum actual residence requirement.
- Investment, not a donation in exchange for a residence permit.
- Direct and simple application procedure.
- Competitive tax rates.
- Possibility to include family members of the applicant in the application.
