Eligibility for Malta Citizenship by Investment: To qualify under the regulations, the Main Applicant for Malta Citizenship by Investment must be at least 18 years of age and must meet the due diligence and residence requirements outlined in this article. The main applicant may also add dependents to a citizenship application including his/her spouse, financially dependent and unmarried children up to the age of 28 and parents or grandparents over the age of 55, under certain conditions, to benefit under the Malta Citizenship Regulations.
Good Health
Applicants must show they do not suffer from a contagious disease and that they do not carry a disease requiring treatment that could impose a burden on the Maltese health system. In fact, one of the application forms required to apply, is a medical form which must be filled in by a medical doctor confirming that the applicant and his dependents included in the application, are in good health and not suffering from any contagious disease and are not likely to become a burden on the Maltese public health system.
'Fit and proper' Test
Applicants must show they are in good standing and repute and will undergo a 'fit and proper' test. The Government of Malta is committed to the highest standard of due diligence to ensure only deserving and reputable applicants are allowed to proceed for the grant of Maltese citizenship.
A four-tier due diligence process is carried out directly by the Government that will assess applicants and will process and approve applications at various stages.
Applicants must demonstrate a clean criminal record, with checks being conducted with the International Criminal Court, INTERPOL and various other authorities and sources.
Economic Contribution to a Maltese Government Fund
To qualify for Malta Citizenship by Investment, the main applicant is required to contribute at least € 750,000 to Malta after being a resident for 1 year or €600,000 after being a residence for three years. Any additional family member must contribute €50,000 each.
This contribution and the investments below need only be made AFTER approval of the applicants' citizenship application.
Purchase or Rental
Applicants are required to purchase a property for at least €700,000 or enter a property rental contract for at least €16,000 p.a. both for a period of 5 years.
Philanthropic Donation
The Main Applicant is required to make a donation of €10,000 to a registered cultural, philanthropic, sports or artistic NGO as approved by the Komunita Malta Agency.
Taxation of New Citizens
The basis for taxation under the Maltese tax system is based on domicile and residency - not citizenship. The grant of Maltese citizenship to a non-domiciliary of Malta does not of itself, cause the beneficiary to acquire a new domicile of choice in Malta. Malta’s connecting factors for tax residency are residence and domicile (not citizenship) and therefore the tax implications may result from the residency requirement imposed by the citizenship regulations and not citizenship itself.
Residence for tax purposes is established by demonstrating an intention to reside in Malta or residing in Malta for 183 days annually.
Tax residents of Malta who are not domiciled in Malta are taxable on a remittance basis. Accordingly, non-doms who are not resident in Malta are not taxable on foreign source income not received in Malta, nor on any capital gains arising outside Malta whether remitted or not. Tax is due only on a source basis on income and capital gains arising in Malta. A non-resident citizen of Malta is only taxable in Malta on Malta source income.
Sale of Property
After the lapse of the obligatory 5 year period, property in Malta can be sold completely exempt from tax if such property is held for a period of 3 years as the resident's sole and ordinary residence.
Other Tax Considerations
- No inheritance or death taxes
- No estate duty
- No net worth or wealth taxes
- No municipal taxes, rates or real estate taxes
- An extensive network of double tax agreements