Program overview – Maltese Residence and Visa Program (MRVP) is aimed at non-EU, non-EEA and non-Switzerland citizens, wishing to start a life in EU member state with luxurious living standards. Program is based on combined investment in real estate and government bonds with a minimum 5-year holding period.
MRVP grants permanent resident status within a short 3 – 4 months period to eligible applicants, qualifying under set requirements and regulations.
Property investment requires purchasing or leasing residential apartment for the main applicant (all dependants applying simultaneously can can be included under the same property investment). Invested amount depends on whether it is situated in Gozo and South of Malta (270 000 EUR or 10 000 EUR/year) or North of Malta (320 000 EUR or 12 000/year). Government bonds of not less tha 250 000 EUR should be acquired regardless of purchased residential property location.
Requirements – Investor should be at least 18 years old, have good standing, and have no criminal record. Due diligence background checks are carried out by the governmental authorities to ensure the creditability and integrity of each adult applicant.
Politically exposed persons (PEPs) are not excluded by the MRVP, however, they are subject to rigorous due diligence procedure to ensure creditability and integrity of the applicant.
Family – As part of this program every investor is entitled to include their spouse, economically dependent parents, grandparents or unmarried children under the age of 26.
Living, Working, Studying, Travelling – Once resident status is obtained investors and thier families can work within Island, though work permit should be acquired (no special requirements applied). Residence permit holders are as well entitled to visa-free travels to whole Schengen area, which includes Switzerland Norway and Ireland.
Financials, investment and contributions
Real estate – To receive permanent resident status investors must purchase real estate for minimum 270 000 EUR if situated in Gozo or South of Malta and 320 000 EUR if situated in the rest of Island.
For those, not eager purchasing properties, government entitles real estate leasing instead. In such case minimum yearly rental value must be equal or exceed 10 000 EUR (if in Gozo or South of Malta) or 12 000 EUR (if in the rest of Island).
Government bonds – Despite the residential property acquisition, principal applicant is required investing at least 250 000 EUR in government bonds.
Holding period for both government bonds and real estate is 5 years, after which government bonds investment is refunded in full automatically, whereas real estate might be sold independently.
Financial contribution – Despite the key investments, Maltese government requires a one-time financial contribution of 30 000 EUR.
Program Investment costs
* the rental option may be chosen instead of the purchase option (minimum of 5 years). Property may be sold after a 5-year period.
** the applicant is allowed to invest in government bonds, stocks or similar securities.
Taxes – Individuals are subjected to tax by the domicile and residence in Malta, not citizenship. Residence for tax purposes is established by demonstrating an intention to reside in Malta indefinitely and definitely by a day count of 183 days. The resident, whose domicile is outside the Republic of Malta, is taxed by remittance.
Malta residence and visa program participants on any foreign income remitted to Malta are charged the progressive tax rates, which ranges from 0% to 35%. For those remitting up to 700 EUR 0% rate is applied, whereas 20%, 30% and 35% of tax rates are applied for ones getting income from 701 to 3 100 EUR, from 3 101 to 7 800 EUR and over 7 801 EUR respectively.
Advanced tax planning can avoid up to 35% Maltese tax on all transfers out of the funds for all payments indicated in this schedule. This includes advice on bank transfers and bank account planning, as well as legal tips on international tax planning opportunities using Maltese entities, tax planning and asset protection in property ownership.
Timescale and Payment Outline
Step 1 (3 – 5 days)
Pre-due diligence enables avoiding possible issues and assures eligibility. It also allows for ineligible applicants to save unnecessary costs, time, and effort.
Step 1 requires:
|Passport copies (including dependants)||Full details on profession or business|
|Residential address||Origin of finances|
|Full information about dependants||Banking details (name, address, SWIFT/BIC code, IBAN No, account number|
In cases of questionable pre-due diligence outcomes, enhanced background checks may be required, including possible cooperation with the relevant authorities.
Step 2 (1 week)
Collection and preparation of documentation takes approximately 1 week. Our lawyers will assist and assure that all paperwork is completed and ready for submission.
Step 2 requires:
Step 3 (1 day)
Main applicant and all the dependents must visit Malta to provide biometric data and apply for legal residence that leads to the issue of actual residence document.
Step 4 (3 – 4 months)
Application processing takes 3 – 4 months on average, after which approval in principal is issued.
Step 5 (20 days)
Remaining contribution amount of 24 500 EUR must be paid within 20 days.
Step 6 (4 months)
After the approval in principle is issued and remaining contribution is paid, investor must provide Identity Malta within 4 months with the following documentation:
|Evidence of a functional residential property in Malta (sale-purchase or lease agreement)|
|Evidence of investment in government bonds|
After remitting contribution, satisfying property and investment requirements, applicants are issued with Maltese residence permits with validity of 5 years for main applicant and each dependent. To secure resident status, property and bonds investment cannot be sold or sublet for at least 5 years since the issue of approval in principle.