Are you a non-European national looking to relocate to Malta? Candidates applying to the Malta Residence Program must note that since March last year, the Malta MRVP Program (Malta Residence and Visa Program) has been replaced by a new program called the Malta Permanent Residence Program (MPRP). You can check out our article: Malta MPRP & Malta CES Investment Programs to know more.
Benefits of the Malta Permanent Residence Program
- Doesn’t require a minimum time period of stay in Malta
- Allows visa free travel across the entire EU Schengen Area
- Investment opportunities in a growing real estate market. The investment requirement is only required for the first five years
- Friendly economical tax regulations
- Family members of the applicant can be included in the same application
- Malta provides a high quality of life
- A safe country with minimal criminal proceedings
Malta Residency and Visa Program- Changes in Qualifying Investment
The entire expenditure for Malta MRVP requirements is divided into three parts mentioned below. But do note that with the introduction of the new Malta MPRP program, the current requirements have changed slightly.
MRVP Program Vs. Malta MPRP Program
MRVP (Old program) | MPRP (New program, as of March 2021) | |
Government Contribution | - Applicants need to pay an amount of €30,000 - Please note that a non-refundable administrative fee of €5,500 will be charged upon the submission of the application - The contribution fee of €30,000 includes the applicant, his/her spouse and all eligible dependents - Upon inclusion of dependent parents and grandparents, a further contribution of €5,000 will have to be given per family member | - A contribution of €28,000 will be needed if the property is purchased. Additionally, €7,500 will need to be given per parent or grandparent of the applicant or spouse - In the case of rented property, €58,000 will need to be given and €7,500 per parent or grandparent of the applicant or spouse |
Qualifying Property | - Purchase of property that is of a minimum value of €320,000 (€270,000 in few designated areas) OR - Lease agreement of a property that incurs an annual rent of €12,000 (€10,000 in few designated areas) - The applicant need to hold the property for a minimum of five years | - Candidates need to purchase property of a minimum value of €350,000 (€300,000 in few designated areas) - Rent a property with a minimum lease value of €12,000 (€10,000 in few designated areas) |
Qualifying Investment | - Investment of €250,000 in debt or equity securities listed on the official list of the Malta Stock Exchange - You can also invest on legal investment schemes that are recognized by the official list of the Malta Stock Exchange | - Candidates need to donate €2,000 to a local non-governmental organization registered under the Commissioner for Voluntary Organization, or approved agency |
You can visit our article: Malta Residency By Investment- The Ultimate Guide By Experts 2024 to know more on the Malta MRVP requirements, especially with regards to investment.
Malta Residency and Visa Program- eligibility criteria
The applicant should be 18 years and above- The applicant should be a third country national
- Proof of annual income of €100,000 or more earned outside of Malta or documents showcasing the applicant’s global net worth of or more than €500,000
- The applicant should have a steady source of income to sustain themselves in Malta
- The applicant should possess a medical health insurance scheme that covers the applicant and family on international waters
- Submit a valid health certificate from a recognized health system/facility
- The applicant should not have any past criminal records
- The applicant must be able to communicate in Maltese or in English
- The applicant and dependents should be able to produce valid travel documents
The applicant should be 18 years and aboveThe eligibility criteria under the new Malta MPRP program remains more or less the same. In addition to the above mentioned criteria, candidates need to showcase assets worth €500,000, out of which €150,000 should be financial assets.
The Malta Residence and Visa Program certificate
A residence permit certificate will be given to all approved applicants under the Malta residency and visa program. The certificate will give the applicant the right to live, work and stay in Malta indefinitely. You need to keep in mind that the Malta permanent residence certificate will be under annual review for the initial five years after it has been issued and after that it will be under scrutiny every five years.
Get in touch with our tem of citizenship by investment specialist
Tax scheme for Maltese residents
Taxes are levied on Maltese citizens on grounds of residence or domicile. Maltese residents whose permanent residence is not in Malta are charged with taxes on remittance basis. Residents will also be taxed as per the Malta income tax rate on personal income and profit gained in Malta.
Malta Permanent Residence Program - application process
The application process is quite simple and consists of the following stages:
• You need to gather all your documents and submit your paperwork
• If your application is approved, a Letter of Approval in Principle is provided
• Post approval, applicants may proceed with the qualifying investment and other fees
• After successful completion of the process, the agency gives Permanent Residence certificate and residence cards to applicants
Benefits of the Malta Permanent Residence Program
The Malta Permanent Residence Programme offers a range of benefits, including:
No minimum period of stay
The Malta Residence and Visa Program (MRVP) offers a unique benefit of not requiring a minimum period of stay in Malta. This means that individuals can maintain their status as permanent residents without the need to stay in Malta for a fixed amount of time each year. This flexibility is especially beneficial for those who travel frequently or have commitments in multiple countries.
Visa-free travel across EU Schengen area
Participants in the Malta Permanent Residence Programme enjoy the privilege of visa-free travel across the EU Schengen Area. This opens up a realm of travel opportunities across Europe, allowing for easy business and leisure trips without the hassle of applying for separate visas.
Investment opportunities
The program presents an attractive proposition for those interested in investment opportunities in Malta’s burgeoning real estate market. The initial value of the investment is required only for the first five years, making it a manageable and potentially profitable venture.
Friendly economical tax regulations
One of the key Malta MRVP tax benefits is its friendly economical tax regulations. This aspect is particularly appealing to third country nationals and investors looking for tax-efficient environments to grow their wealth.
Family inclusion
A notable feature of the Malta Residence and Visa scheme is the inclusion of family members in the same application. This allows for a unified approach to family residency, ensuring that immediate family members can also enjoy the benefits of living in Malta.
High quality of life
Malta is renowned for its high quality of life, which is a significant draw for the Malta residency program. The combination of a Mediterranean lifestyle, robust healthcare, and educational systems contribute to a living experience that is both enriching and comfortable.
Safety
Ensuring the safety of its residents, Malta is known for having minimal criminal proceedings. This aspect of safety makes it an ideal destination for those looking to reside in a secure and stable environment.
Malta MRVP requirements and regulations
The Malta Residence and Visa Programme has specific requirements and regulations, designed to ensure that the process is straightforward and transparent for applicants. These include financial requirements, background checks, and adherence to Malta MRVP visa programme regulations, ensuring a smooth and secure residency experience.
Malta Permanent Residence Program - Application Process
Stage 1: Document preparation and submission
In this initial stage, the main applicant must gather all necessary documents, including personal identification, proof of financial stability, medical insurance coverage, and a clean criminal record. The process involves collecting these documents in the applicant’s home country, typically through various legal and financial institutions. The timing should align with the decision to apply for the program, ensuring that all documents are current and accurately reflect the applicant’s situation. This thorough preparation is essential for meeting the MRVP Malta requirements, forming the foundation of a successful application.
Stage 2: Application review and approval in principle
After submitting the application, it undergoes a rigorous review by the Maltese authorities. If all criteria are met, an Approval in Principle is issued. This critical step happens within Malta’s immigration system, where each application is scrutinized to ensure compliance with the program’s standards. The outcome is usually communicated within a few months of submission. This stage is crucial for confirming the eligibility of the applicant for the Malta Permanent Residence Program and sets the stage for the next steps.
Stage 3: Meeting investment requirements
Following the Approval in Principle, applicants must meet specific investment programme requirements. This involves making a qualifying investment in Malta, which could include purchasing or leasing property situated in Malta or investing in government-approved bonds or funds. The investment is a key component of the application, demonstrating the applicant’s commitment and financial contribution to Malta. The purpose of this stage is to fulfill the financial obligations of the residency program and to establish a tangible link with the country.
Stage 4: Final approval and issuance of residence permit
Upon successful completion of the investment and final vetting, the Maltese authorities issue the Maltese Residence Permit, which includes the Permanent Residence certificate and residence cards. This final stage occurs in Malta, often requiring the applicant’s presence to receive the documents. The residence permit is the formal recognition of the applicant’s new status as a resident of Malta, allowing them to enjoy the benefits associated with this status, including tax residency in a favorable fiscal environment.
The Malta Residence and Visa Program Certificate
The Malta Residence and Visa Program certificate, which is a type of residence permit, plays a crucial role in the lives of those legally residing in Malta under this specific program. This certificate is not just a formal document; it symbolizes the holder’s right to live, work, and stay in Malta indefinitely, offering a semblance of permanence and stability akin to a similar status held by Maltese nationals.
When an applicant is approved under the Malta residency and visa program, they receive this certificate, which acts as a testament to their legal status in the country. This status is especially valuable for those seeking a long-term residence in an EU country, providing them with a range of benefits and rights within Malta. Moreover, it allows the holder to travel within the Schengen Area, provided they have a valid travel document, like a passport.
An important aspect of this program, particularly for those with families, is the inclusion of qualifying dependents. This means that spouses, children, and sometimes other family members can also be granted residence under the main applicant’s certificate, thus facilitating family unity.
The Malta permanent residence certificate comes with an initial review period of five years. During this time, the authorities conduct annual reviews to ensure that the holders continue to meet the necessary criteria, such as maintaining their investment in the country, which could be in real estate or government bonds. This scrutiny is a standard procedure to maintain the integrity of the program and ensure that the benefits are provided to those who genuinely contribute to and reside in Malta.
After the initial five-year period, the certificate is subject to review every five years. This ongoing scrutiny is a part of maintaining the program’s standards and aligns with the regulations of many residence programs worldwide. It ensures that the residents continue to meet the requirements of the new programme and maintain their status within the country.
Tax Scheme for Maltese Residents
The tax scheme for Maltese residents is a structured system that aligns with the principles laid out in the Immigration Act and various legal notices pertaining to taxation. Under this system, taxes in Malta are levied based on residence or domicile, which directly impacts individuals participating in the Visa Programme MRVP or those with Maltese residency.
Key tax types for Maltese residents
Income Tax: Maltese residents are taxed on their personal income. This includes income generated within Malta as well as, under certain conditions, income earned globally. The tax rates for individuals vary, starting at 0% for income up to a certain threshold and then progressively increasing up to 35% for higher income brackets.
- Capital Gains Tax: This tax is applied on the profit gained from the sale of certain types of assets, including qualifying property. The standard rate for capital gains tax in Malta is 12% of the transfer value or the profit, whichever is higher.
- Remittance basis taxation: For residents whose permanent residence is not in Malta, a remittance basis of taxation is applied. Under this system, they are taxed only on the income that is received in or remitted to Malta, not their worldwide income. This system can be particularly beneficial for expatriates or those under the MRVP who may have sources of income outside Malta.
- Value Added Tax (VAT): VAT in Malta is applied to most goods and services. The standard rate is 18%, but reduced rates and exemptions apply to certain items and services.
- Property tax: While Malta does not have a typical annual property tax, there are taxes related to the purchase and sale of property. For instance, when purchasing a property, a stamp duty of 5% is generally applicable on the property value.
- Inheritance tax: Malta does not impose an inheritance tax, but there are other related duties that may apply under specific circumstances.
Special considerations
Principally Dependant: For individuals with dependants, the tax system may offer certain deductions or allowances, depending on the nature of their dependancy.
Double Taxation Relief: Malta has agreements with many countries to avoid double taxation, ensuring that residents do not pay tax twice on the same income.
Tax Compliance: All residents must comply with Maltese tax laws and regulations, and are required to file annual tax returns if they meet certain criteria.
Why choose Global Citizen Solutions?
We offer exclusive custom-made services for all your needs and requirements. Our team of local and global specialists work continuously to ensure a hassle-free application process for you and your family. At GCS, we value your time, trust and faith in us.
Frequently Asked Questions About Malta MRVP Program
How do I get residency in Malta?
To obtain residence in Malta, you can apply through the Malta Permanent Residence Program (MPRP). This residence programme involves meeting certain criteria, including financial investments and proof of stable income. By fulfilling these requirements, you earn the right to reside in Malta, enjoying the benefits and quality of life the country offers.
Can I live in Malta after Brexit?
Post-Brexit, if you are from a third country or the UK, residing in Malta requires a residence permit, working visa, student visa, or a retirement visa. For stays longer than three months, applying for residency or obtaining a suitable visa is essential. These regulations ensure that you legally reside in Malta and enjoy the same privileges as other residents.
Does Malta offer permanent residency?
Yes, Malta offers permanent residency. After completing your studies, if you’re looking to become a permanent resident, you need to check the eligibility criteria for the Malta residence program. This includes making an investment in the country. Once you obtain permanent residency, you are subject to a 15% tax rate on income generated within Malta.
What is the Health insurance coverage amount that I need to have to apply for MRVP?
When applying for the MRVP, you must have a health insurance policy that covers health risks up to a minimum of €30,000 in the European Union. This coverage amount is also applicable to all your dependents, ensuring comprehensive health protection for your entire family while residing in Malta.
When was the MRVP Program changed?
The Malta Residence and Visa Program (MRVP) underwent a significant change on 29th March 2021. It was replaced with the new Malta Permanent Residence Program (MPRP), reflecting updates in the policies and regulations for applicants seeking residence in Malta.
What is the difference between MRVP and MPRP?
The main difference between the MRVP and the MPRP lies in the eligibility criteria, particularly regarding the cost and qualifying investments. The MPRP has introduced changes in these areas, including a revised contribution of 30,000 euros, to streamline the process and make it more accessible to potential applicants seeking residency in Malta.
Can foreigners get PR in Malta?
Malta is known for its welcoming approach to foreigners, including Swiss nationals and others, seeking PR. Foreigners can indeed get PR in Malta, provided they meet all the necessary criteria and go through the proper channels, such as working with entities like the CSB Group, which specializes in assisting with such applications.
Can I live in Malta permanently?
The ability to live in Malta permanently is one of the key attractions of the program. Once the investment and application requirements are fulfilled, individuals can enjoy a high quality of life, with Malta’s official language being English, adding to the ease of settling in for many expatriates. The program also allows for the exploration of the beautiful island, whether choosing to live in the bustling cities or quieter areas like Gozo or the south of Malta.
What is the Maltese permanent residency program?
This program is a form of residency by investment, requiring applicants, including their adult children and spouses (if in a monogamous marriage), to invest a certain amount in the country. The investment typically involves a few thousand euros, often in real estate or government-approved funds.
Is it easy to get PR in Malta?
For those wondering if it’s easy to get PR in Malta, it’s important to understand that while the process is structured, it requires thoroughness, especially during the application stage and application onwards. Successful applicants can reside, settle, and stay indefinitely in Malta, allowing them to enjoy living in one of the safest countries in Europe. Additionally, Malta’s status in the Schengen area means residents can travel freely across Schengen countries.
How much to invest in Malta to get residency?
Here are the following investment route you can take to obtain residency in Malta
- Submit a non-refundable administrative fee of €40,000.
- Lease a property for at least €10,000 annually in the South of Malta/Gozo, or €12,000 in other parts of Malta.
- Alternatively, purchase a property for a minimum of €300,000 in the South of Malta/Gozo, or €350,000 elsewhere in Malta.
- Contribute €28,000 to the government if buying a property, or €58,000 if renting.
- Pay an additional €7,500 for each parent or grandparent of the main applicant or their spouse, provided they are principally dependent on the main applicant.
- Maintain the qualifying property for a minimum of 5 years, after which a residential address in Malta is required.
- Donate €2,000 to a registered local NGO involved in philanthropy, culture, science, art, sports, or animal welfare.
- Possess a valid travel document.
- Acquire a comprehensive health insurance policy covering all risks in Malta.
- Obtain travel insurance for journeys within the Schengen area.
How much is the permanent residence fee in Malta?
The permanent residence fee in Malta varies, but it is a crucial part of the application process. This fee is in addition to the investment requirement and is payable at different stages of the application. This fee is in addition to the investment requirement and is payable at different stages of the application.
