MALTA CITIZENSHIP BY INVESTMENT

A Comprehensive Guide to Malta Citizenship by Investment - Everything You Need to Know

Welcome to our comprehensive guide to the Malta citizenship by investment program! Malta's investment citizenship program, also known as the Malta Exceptional Investor Naturalization (MEIN), or the Citizenship for Exceptional Services program (CES), offers an opportunity for eligible individuals to obtain Maltese citizenship through an investment in the country's economy.

In this guide, we explore the application process, investment requirements, benefits, taxation aspects, and frequently asked questions, providing a comprehensive overview for those considering this program.

Whether you're a business investor, entrepreneur, celebrity VIP, or individual seeking global mobility and EU citizenship, this guide will equip you with the knowledge needed to navigate the Malta Citizenship by Investment program effectively.

What is Citizenship by Investment?

Citizenship by Investment (CBI) refers to a legal process through which eligible individuals can acquire citizenship of a country by making a substantial investment in its economy or society.

It is a globally recognized pathway for individuals seeking to obtain a second citizenship and access the benefits associated with it. In the context of Malta, the country's citizenship by investment program, under its official name of "Malta Naturalisation for Exceptional Services by Direct Investment Regulations", allows qualified applicants to become Maltese citizens by contributing to the country's economic development.

• The Malta citizenship by investment program offers applicants an opportunity to receive Malta citizenship and the Malta passport through an investment in the country.
• Applicants can become Maltese citizens after holding Malta residency status for at least 12 months.
• Living in Malta year-round during residency or after receiving citizenship is not required.
• The program is designed to attract high net worth individuals and investors seeking European citizenship.
• Successful applicants gain access to numerous benefits, including visa-free travel, free education and healthcare, and a strategic location within the European Union.
• The Malta Citizenship by Investment Program is regulated by the Maltese government to ensure transparency and integrity.

Why Malta Citizenship by Investment?

The Malta Citizenship by Investment Program stands out as an attractive option due to its numerous advantages and favorable conditions for prospective applicants. Malta, as an EU member state, offers a stable political environment, strong legal protections, and access to the European market.

Malta's reputation for excellence in financial services and regulatory standards further enhances the appeal of its citizenship program, attracting discerning investors looking for a secure and reputable investment destination.

• Access to the European Union and Schengen Area, providing freedom of movement and economic opportunities across Europe.
• Stable political and economic environment, offering security and peace of mind to investors and their families.
• Robust legal framework and regulatory system, ensuring transparency and investor protection.
• Strategic location in the Mediterranean, with a thriving business landscape and attractive lifestyle.
• Recognition and acceptance of Maltese citizenship globally, enhancing international mobility and business prospects.
• The last remaining direct citizenship-by-investment program in Europe.

What are the Benefits of Malta Citizenship by Investment?

Obtaining Malta citizenship through investment offers a range of benefits that enhance personal, professional, and financial opportunities for individuals and their families. These benefits extend beyond the borders of Malta and provide access to global advantages.

• European Union Membership: Acquiring Maltese citizenship grants the right to live, work, and study in any EU member state.
• Visa-free Access: Enjoy visa-free or visa-on-arrival entry to over 180 countries worldwide, facilitating global travel and business activities.
• Full EU Rights: Benefit from the same rights as EU citizens, including access to healthcare, education, and social services.
• Political Stability: Malta's stable democracy and business-friendly environment provide a secure foundation for personal and financial growth.
• Quality of Life: Experience a high standard of living, with access to world-class healthcare, education, and cultural amenities.
• Tax Advantages: Malta offers attractive tax incentives, including low tax rates, double taxation treaties, and wealth management opportunities.
• Real Estate Investment: Opportunity to invest in Malta's booming real estate market, with potential for capital appreciation and rental income.
• Global Mobility: Enjoy the flexibility to travel and conduct business globally without visa restrictions.
• Family Security: Provide a secure future for your family, including free higher education, free healthcare, and lifestyle choices.
• Dual Citizenship: Gain the freedom and flexibility of holding dual citizenship, enhancing your global footprint and investment options.

Who can Apply for Malta Citizenship by Investment?

The Malta Citizenship by Investment Program is designed for eligible individuals who meet specific criteria and demonstrate a genuine interest in contributing to Malta's economy and society. Prospective applicants must fulfill certain requirements to qualify for consideration.

• High Net Worth Individuals: Applicants must demonstrate a significant net worth and financial capacity to make the required investment.
• Investors, Business Owners, and Entrepreneurs: Those seeking investment opportunities and strategic business ventures in Malta can benefit from the program.
• Family Members: The program allows for the inclusion of spouses, children, parents, grandparents, and other dependent family members in the application.

What is the Eligibility for Malta Citizenship by Investment?

To be eligible for Malta citizenship by investment, applicants must meet specific criteria related to investment commitments, residency requirements, financial capacity, and compliance with program regulations. These eligibility criteria are designed to ensure that applicants contribute positively to Malta's economic and social development.

• Investment Options: In addition to a contribution to the national development fund, investors choose from various investment options, including real estate purchase or rental and a donation to a philanthropic organization of the applicant's choice.
• Financial Capacity: Demonstrate the ability to make the required investment and support ongoing financial obligations.
• Clean Background: Maintain a clean criminal record and good character, as assessed through due diligence checks.
• Residency Requirement: Establish a genuine connection with Malta by obtaining residency status for at least 12 months before becoming eligible for citizenship.
• Health Insurance: Ensure health insurance coverage for yourself and dependents, meeting Malta's healthcare standards.

How to Apply for Malta Citizenship by Investment?

The application process for Malta Citizenship by Investment involves several key steps and documentation. Applicants start with a consultation to understand the program's requirements and their eligibility. They then gather necessary documents, submit the application, undergo due diligence checks, and upon approval, make the required investments.

• Step 1. Consultation: Seek guidance from our government-licensed immigration attorneys and immigration advisors specializing in Malta Citizenship by Investment. We will represent you throughout the application procedure.
• Step 2. Residency Application: Rent a local residence to cover the residency period, and we file for Malta residency status, which allows visa-free Schengen travel, valid for up to 36 months.
• Step 3. Citizenship Eligibility: After the applicant has received residency status, we proceed with filing for Malta citizenship eligibility.
• Step 4. Citizenship Application: After eligibility is confirmed, we submit the Malta citizenship application. If approved, the government issues a conditional Approval in Principle.
• Step 5. Investments: Upon receiving the approval in principle, the applicant fulfills all remaining requirements, including making the required investment/donation and securing a property for a minimum of 5 years through either purchase or rental.
• Step 6. The final step involves taking the Oath of Allegiance, after which the applicant receives the Certificate of Naturalization and the Malta passport.

The entire process, from Step #1 to Step #6, can be completed in as little as 14 - 18 months.

What is the Investment required for Malta Citizenship by Investment?

The Malta Citizenship by Investment program entails a significant financial commitment in various investment categories. Applicants must make a non-refundable contribution to Malta's National Development Fund as well as a donation to a Malta non-governmental philanthropic organization of their choice. Applicants also need to demonstrate financial stability and capacity to cover government fees, processing costs, and legal advisory fees associated with the program. Please contact us to receive a non-binding quotation.

• Direct Contribution: Make a non-refundable contribution (donation) to Malta's National Development Fund to benefit all citizens of Malta. If selecting the 36-month residency option, the contribution amount is €600,000 for the main applicant. If the applicant selects the 12-month residency option, the contribution is €750,000.
• Philanthropic Donation. Applicants must make a donation of €10,000 to a Maltese NGO of their choice.
• Real Estate Investment: Lease or purchase a qualifying property in Malta, meeting minimum investment thresholds.
• Government Fees: Pay applicable government fees, including processing fees, due diligence charges, and administrative costs of approximately €22,000.
• Total Investment: The total minimum investment amounts to €632,000 plus a property rental (or a property purchase) and legal fees.

Is Malta Citizenship by Investment a good investment?

The Malta Citizenship by Investment Program offers substantial benefits and potential returns, making it an attractive investment option. Investors can benefit from Malta's strategic location, EU membership privileges, global mobility, tax advantages, and asset diversification opportunities. These factors contribute to the program's appeal as a viable investment choice for individuals seeking citizenship and long-term financial growth and diversification.

• Strategic Location: Benefit from Malta's strategic position in Europe, offering access to diverse markets and business opportunities.
• EU Membership: Gain full rights and privileges as an EU citizen, including free movement, residence, and employment across EU member states.
• Global Mobility: Enjoy visa-free travel to numerous countries worldwide, facilitating international business and leisure travel.
• Tax Advantages: Leverage Malta's favorable tax regime, with incentives for investors, entrepreneurs, and high net worth individuals.
• Asset Diversification: Diversify your investment portfolio with real estate, bonds, and other assets in a stable and growing economy.

How easy is it to get Malta Citizenship by Investment?

The process of obtaining Malta Citizenship by Investment is streamlined and efficient for eligible applicants. With clear guidelines, professional assistance, comprehensive support, and a transparent process, qualified individuals can navigate the program with relative ease. These aspects contribute to the accessibility and feasibility of acquiring Malta citizenship through investment.

• Professional Assistance: Receive expert guidance throughout the application process from our government-authorized agents and immigration experts specializing in Malta's Citizenship by Investment program.
• Clear Guidelines: Benefit from transparent guidelines and requirements set by the Maltese government for citizenship eligibility.
• Comprehensive Support: Get comprehensive hands-on support throughout the application process, including form preparation, document collection, due diligence checks, and personal follow up with the local government agencies on your behalf.
• Transparent Process: Engage in a transparent and regulated process, ensuring compliance with legal and regulatory standards.

How expensive is Malta Citizenship by Investment?

The cost of obtaining Malta citizenship through an investment varies depending on the investment options chosen, the number of family members, and associated fees. Applicants must be prepared for a significant financial commitment, including direct contributions, real estate investments, government charges, and legal advisory fees. Understanding the financial requirements and budgeting accordingly is essential for successful participation in the program.

• Financial Commitment: Prepare to make a significant financial commitment, including a contribution to the Malta economy and a donation to a Malta-based NGO.
• Government Charges: Pay applicable government charges, such as processing fees, due diligence costs, and administrative expenses.
• Real Estate Investment: Choose between renting or purchasing a property in Malta. Options include apartments, condominiums, and single family houses.
• Legal and Advisory Fees: Engage legal and advisory services for application assistance, document preparation, and compliance support.
• Total Investment: The total investment required, including direct costs and associated expenses, depends on the number of family members to be included. For a single applicant, the minimum total investment is €632,000 plus a property rental (or a property purchase) and legal fees. Please contact us for a non-binding quotation.

What is the 183 tax rule for Malta Citizenship?

The 183-day rule refers to the residency requirement for tax purposes. This rule stipulates that individuals become tax residents in Malta if they reside in Malta for more than 183 days (6 months) per calendar year. However, there is no requirement to reside in Malta for 183 days, either during the residency stage or after receiving citizenship.

In other words, the 183 day rule does not automatically apply upon receiving Malta citizenship or residency. In general, Malta taxation is only based on domicile (your permanent home) or the intention to reside in Malta, and it is not based on residency or citizenship status.

This means if you don’t make Malta your domicile, then only income and capital gains generated from activities inside Malta are fully taxable. Income, such as from employment, arising outside of Malta and not sent to Malta is not taxable. In addition, capital gains or savings generated outside of Malta even if brought into Malta are not taxable for non-domiciled residents.

In short, tax is due only on (a) income generated inside of Malta, (b) capital gains arising inside of Malta, and (c) income generated outside of Malta and remitted to Malta.

• 183-day Rule: Refers to the maximum number of days an individual can be physically present in a country before they become considered a tax resident in that country.
• Malta Citizenship by Investment and Taxation: The 183-day rule functions as an independent factor for determining tax residency. Simply obtaining Malta citizenship does not automatically make the individual a Maltese tax resident.
• Malta Taxation Based on Domicile: Non-domicile residents and citizens pay tax on (a) income generated inside of Malta, (b) capital gains arising inside of Malta, and (c) income generated outside of Malta and remitted to Malta.
• Other Malta Tax Considerations: There are no inheritance or death taxes, no estate duty, no net worth or wealth taxes, no municipal taxes, and no real estate taxes.

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