There are advantages to Malta’s Citizenship by Investment (CBI) programme, yet the hidden costs of CBI also demand attention. While the programme itself outlines its main fees clearly, candidates often encounter additional, less visible expenses. In this blog, we reveal the hidden costs of CBI so you can make a fully informed choice.
For a complete breakdown of required contributions and government fees, refer to this detailed cost guide to Malta Citizenship by Investment.
Hidden Costs of CBI: What Are the Secret Costs?
Besides the primary investment needs, candidates typically face unforeseen expenses. Such unforeseen CBI expenses can greatly affect your budget. We will describe such charges in detail.
Hidden Costs of CBI: Application and Due Diligence Fees Explained
Non-Refundable Deposit and Residency Charges
One of the most overlooked Hidden Costs of CBI is the mandatory non-refundable deposit of €10,000, payable during the residency stage. In addition, applicants must pay residence permit fees €5,000 for the main applicant and €1,000 for each dependent. These upfront charges often catch applicants by surprise, so they should be incorporated into the initial CBI budget.
Due Diligence Fees for All Family Members
Another significant element within the Hidden Costs of CBI is the due diligence process. These fees vary by age but remain mandatory for every applicant. The main applicant pays €15,000, while dependents aged 12 and above pay €10,000 each. These due diligence costs cover background screening and ensure the programme maintains high integrity standards, but they can quickly raise the total financial commitment.
Hidden Costs of CBI: Property-Related Expenses
Real Estate Agent Commissions
Engaging an agent comes with extra charges, usually 1% to 5% of the cost of the property. People usually overlook these charges, but they can be high. Therefore, you ought to include them in your budget when contemplating investing in real estate.
Hidden Costs of CBI: Legal and Professional Fees
Legal Representation
Applicants must engage an experienced immigration lawyer, often at a high cost. The complexity of the application determines the legal fees. Additionally, the attorney’s level of experience also affects the cost. Hence, one has to consider these fees when planning the application’s budget.
Translation and Notarization
Applicants must translate and notarize the non-English and Maltese documents. These are the other hidden costs of CBI. This is particularly important for applicants who are not English speakers. Thus, the applicants should be prepared to pay these additional fees when officials process their documents.
Hidden Costs of CBI: Travel and Relocation Expenses
Biometric Data Collection
The applicants must go to Malta to submit biometric information. Transport, accommodation, and airfare make up the cost. Further, these costs can double up very fast. The candidates should thus factor in these travel costs when budgeting.
Relocation Expenses
Relocation to Malta involves moving goods, temporary housing, and school fees if there are children. All these expenses can add up very quickly. Additionally, applicants may incur other fees like utilities and settlement charges. As such, there is a necessity to plan and budget for every relocation cost.
Hidden Costs of CBI: Continuing Fiscal Drain
Property Retention
Applicants must retain the purchased or rented property for a minimum of five years. Throughout the period, utility and maintenance expenses still pile up. Moreover, such long-term expenses can affect your financial situation. Therefore, there is a need to factor in the expenses in the long term.
Annual Taxes
Though Malta does not have wealth or inheritance taxes, it has property taxes and local council fees. Such periodic fees are among the concealed costs of CBI. These may also accumulate in the long run. The applicants should therefore beware of such ongoing monetary outflows.
Want to understand how life in the EU compares? Read the EU’s official guide on living in the European Union.
Hidden Costs of CBI: Charitable Donation
Compulsory Donation
A one-off contribution of €10,000 towards a Maltese charity. Although a shared expense, it is frequently undervalued when budgeting initially. Furthermore, this cost can take applicants unawares. Therefore, you will need to include it in your global financial planning.
Hidden Costs of CBI: Is Malta’s CBI Programme Still Worth It?
In spite of CBI’s concealed costs, the program is highly beneficial. One of its benefits includes visa-free access to 188 nations. Additionally, membership in the EU and tax advantages make the investment worthwhile. Nonetheless, careful financial planning is necessary. Consequently, applicants need to weigh both costs and benefits decisively prior to making a decision.
Comparing residency vs. citizenship? See this full comparison between MPRP and CBI in Malta to decide which is right for you.
Hidden Costs of CBI: How to Reduce Hidden Costs
Research and Planning
Conduct proper research and speak with registered agents to know about all the probable fees. Seek assistance from professionals too so that you have a clear concept of the process. Proper planning keeps you away from unexpected expenses. Thus, you can make fully informed decisions and maintain your budget level.
Budgeting
Create an overall budget that consists of all known and estimated hidden expenses. This way, you know the total expense of the commitment. Also, itemize direct costs and indirect costs. That way, you are financially ready for the whole process and do not have to deal with any surprise expenses.
Negotiating Fees
Negotiable fees include real estate agent fees and attorney fees. Talk about these fees in advance to get the best rates. Overall costs can be lowered through negotiation as well. You can thus save money and avoid unnecessary charges along the way.
Curious about other options worldwide? Here’s a complete list of countries offering citizenship by investment.
Conclusion: Hidden Costs of CBI
Malta Citizenship by Investment programme is a worthwhile offer, yet it has inherent costs of CBI. From application to property fees, these costs can be daunting. Knowing and being prepared for them will enable you to make an informed decision and reap maximum benefits from the programme.
FAQ
What are the secret costs of CBI?
There are hidden costs such as due diligence expenses, property expenses, legal expenses, travel expenses, and long-term financial obligations such as property upkeep.
Are due diligence fees refundable?
No, due diligence fees are not returned if the application is denied.
Can I sidestep property expenses?
No, buying or leasing a property is required. Though, you can plan maintenance and utility expenses ahead of time.
How do I minimize legal costs?
Shop around, compare charges from several qualified lawyers, and negotiate fees. Reveal all potential fees in advance.
Is the charitable gift obligatory?
Indeed, a one-time contribution of €10,000 to a Maltese non-governmental organization is a mandatory component of the program.
By answering these questions, we hope to bring clarity to the concealed costs of CBI. With adequate planning and budgeting, you can work through these costs and get the best out of Malta’s Citizenship by Investment programme.
