Malta, a picturesque archipelago in the Mediterranean, has become a popular destination for affluent individuals and families seeking citizenship through investment. The Malta Citizenship by Investment Program, also known as the Malta Individual Investor Program (MIIP), attracts potential investors with its streamlined process and numerous benefits.
Launched in 2014, the MIIP enables individuals to acquire Maltese citizenship by making significant contributions to the country’s economy. Below, we dive into the specifics of the program, its requirements, benefits, and considerations.
Overview of the Malta Citizenship by Investment Program
The Malta Citizenship by Investment Program offers a pathway for non-Maltese nationals to obtain citizenship by fulfilling a combination of financial contributions, investments, and residency requirements. Successful applicants gain the rights and privileges of being a Maltese citizen, which include the ability to live, work, and study in Malta and other EU member states.
In November 2020, the Maltese government introduced the Granting of Maltese Citizenship for Exceptional Services Regulations, which were documented as Legal Notice 437 of 2020. This legislation established a new framework for acquiring Maltese citizenship through investment, commonly referred to as the Maltese Citizenship by Investment Program.
Key Features of aqcuiring Malta citizenship:
- Eligibility Requirements:
- Applicants must make a significant contribution to Malta’s economic development.
- They must meet strict due diligence and background checks to ensure integrity and reputation.
- Applicants must hold Maltese residency for a minimum period before becoming eligible for citizenship.
- Investment Options:
- A non-refundable contribution to the Maltese government’s National Development and Social Fund.
- Investment in real estate (either purchasing property or renting for a minimum period).
- A donation to a registered Maltese philanthropic organization.
- Residency Requirement:
- Applicants must reside in Malta for a minimum of 12 or 36 months, depending on the contribution amount.
- Due Diligence and Transparency:
- The program emphasizes rigorous due diligence to ensure that only individuals of good standing are granted citizenship.
- It aligns with international standards to prevent misuse and maintain transparency.
- Cap on Applications:
- The program has an annual cap of 1,500 successful applications, ensuring controlled and sustainable implementation.
Purpose of the Malta Citizenship Program:
The Maltese government designed this program to attract high-net-worth individuals who can contribute to the country’s economic growth while maintaining the integrity of its citizenship process. The program is part of Malta’s broader strategy to strengthen its economy and global standing.
Legal Notice 437 of 2020:
This legal notice formalized the regulations, providing a clear framework for the program’s implementation. It replaced the previous Individual Investor Program (IIP), which had been operational since 2014, and introduced stricter requirements and enhanced due diligence measures.
Key Requirements of Malta Citizenship
Contribution of:
*€750,000 payable to the Maltese government for an expedited application after 12 months of residency; or
*€600,000 payable to the Maltese government if applying after 36 months of residency.
Key Points Regarding Dependent Fees:
- Fee for Each Added Dependent: In both the 12-month residency option and the 36-month residency option, the applicable fee for each added dependent (such as a spouse, child, or parent) is €50,000.
- Purpose of the Fee: This fee is in addition to the main investment requirements (e.g., contributions to the National Development and Social Fund, real estate investment, and donations). It ensures that dependents are also covered under the due diligence process and contributes to the overall economic benefits of the program.
Breakdown of Dependent Fees:
- Spouse: €50,000
- Children (under 18 years old): €50,000 per child
- Adult Children (18–29 years old, unmarried, and financially dependent on the main applicant): €50,000 per child
- Parents or Grandparents (over 55 years old and financially dependent on the main applicant): €50,000 per parent/grandparent
Example Scenario:
If a main applicant applies with a spouse and two children, the total dependent fees would be:
- Spouse: €50,000
- Child 1: €50,000
- Child 2: €50,000
- Total Dependent Fees: €150,000
*A non-refundable contribution of €10,000 to the National Development and Social Fund, which supports national social, economic, and cultural initiatives.
Property Requirement
Applicants must either purchase a property worth at least €700,000 or rent a residence with a minimum annual rental value of €16,000 for five years.
Due Diligence Checks
Comprehensive background checks are conducted to ensure applicants meet the program’s eligibility criteria regarding good character and financial stability.
Residency Period
Applicants are required to maintain residency in Malta for at least 12 months before applying for citizenship.
Application Process
The application process involves several steps:
Engage a Licensed Agent
Prospective applicants must work with Authorized Registered Agents who guide them through the entire process and ensure compliance with all requirements.
Submit Application
Submit the citizenship application aided by the agent. The authorities will review the application and the necessary documents.
Approval
Upon preliminary approval, applicants must make the required contributions.
Naturalization Ceremony
Once approved, applicants and their families are invited to a naturalization ceremony where they officially become citizens.
Benefits of Maltese Citizenship
Choosing to invest in Malta provides numerous advantages, including:
EU Citizenship
Maltese citizens are citizens of the European Union, granting them the right to live, work, and travel freely across EU member countries.
Visa-Free Travel
Enjoy visa-free access to over 180 countries worldwide, including Schengen Area countries and Commonwealth nations.
Tax Benefits
Malta offers favorable tax conditions for foreign investors, including low corporate tax rates and no wealth or inheritance taxes.
Quality of Life
Malta features a rich cultural heritage, a pleasant Mediterranean climate, excellent healthcare facilities, and a thriving expat community.
Stable Economy
Malta boasts a robust and growing economy, particularly in sectors like finance, gaming, and technology.
Conclusion
The Malta Citizenship by Investment Program presents an appealing opportunity for high-net-worth individuals who wish to obtain EU citizenship through a structured and efficient process.
With its attractive benefits, Malta not only stands as a gateway to the European Union but also offers a secure environment and high quality of life. Interested applicants should conduct thorough due diligence and consult with authorized agents to navigate the complexities of the application process effectively.
FAQ
How long does the application for Malta Citizenship process take?
The entire process typically takes between 12 to 18 months, depending on the applicant’s readiness and the efficiency of the documentation.
Can my family be included in my application for Malta citizenship?
Yes, you can include your spouse, dependent children, and dependent parents in your application for citizenship.
Is the National Development and Social Fund contribution refundable?
No, the contribution to the fund is non-refundable regardless of the application’s outcome.
Do I need to live in Malta after obtaining Malta citizenship?
While you must maintain residency for at least one year before applying, after receiving citizenship, there are no further residency requirements.
What happens if my application is rejected?
If your application is rejected you will not obtain Malta citizenship. It’s vital to fulfil all the requirements diligently to avoid rejection.