Malta Citizenship by Investment

A thriving and self-sustaining economy in the European Union, the Republic of Malta enjoys a stable political climate and a bi-partisan political scene which is largely convergent on issues of national and economic importance. Together with Germany, Malta has weathered the financial crisis and also the Covid pandemic, and maintained economic growth during challenging times. Malta's economy continues to experience strong growth, driven by robust exports and high domestic demand. Tourism has surged beyond pre-pandemic levels, and a significant influx of workers is further stimulating domestic consumption. Following a GDP growth rate of 5.6% in 2023, the economy is projected to grow by 4.6% in 2024 and 4.3% in 2025.

The Island has been a member of the European Union since 2004 and is part of Schengen since 2007. Maltese citizenship by investment grants access to all investment opportunities in Malta and throughout the European Union.

Obtaining Maltese citizenship by investments offers several benefits, particularly given Malta's strategic location in Europe, its membership in the European Union (EU), and the various advantages that come with being a citizen of a stable and economically strong nation. Here are some of the key benefits:

• Maltese citizens have the right to settle, live, work, study, retire in any of the 28 EU countries,
• Maltese citizens enjoy significant mobility, with over 190 visa-free destinations, including EU, USA, Canada.
• Family eligibility includes the spouse or partner in a stable relationship, parents of the main applicant and spouse over the age of 55, minor children, and unmarried dependent adult children under 28. Descendants are automatically entitled to citizenship thereafter.
• Malta is a neutral, safe and stable country with a friendly people living a European lifestyle but with a Mediterranean quality of life.
• Malta has a stable political environment, a growing economy, and a legal system that is based on English law, making it a safe and secure place to live.
• Malta allows dual and multiple citizenship, without requiring you to renounce your original citizenship.

Obtaining a second citizenship has become a valuable asset for savvy investors looking to organise their professional and personal lives within a stable, law-abiding country like Malta. This strategy is now a favoured tool for asset diversification, providing a significant advantage in mitigating geopolitical risks.

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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

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Applying for Malta Citizenship by Investment

The application process for Malta Citizenship by Investment requires undergoing a four tier due diligence test and a medical assessment, and the following three main financial requirements need to be fulfilled:

1. Applicants must make an exceptional non-refundable contribution of €750,000 (12 months residency) or €600,000 (36 months residency), and
2. Applicants must donate a minimum of €10,000 to a Maltese-registered non-governmental organisation, and
3. Applicant must also rent or purchase a property in Malta.

Residence Requirement

Under European Law, after the 2025 Malta Golden Passport Case, the European Court established for the first time the clear legal precedent requiring prior physical requirement and genuine links as a basis for granting citizenship.

The residence requirement requires evidence of the investor's activities in Malta for the 1 year or 3 year period. Citizenship is granted after 12 or 36 months from effective date of commencement of the residence in Malta. Applicants must commit to a minimum physical presence in Malta before citizenship is granted. Our lawyers advise extensively on meeting the requirements of the citizenship regulations. Our lawyers advise extensively on meeting the requirements of the citizenship regulations.Our lawyers advise extensively on meeting the requirements of the citizenship regulations.

Application Time Frames & Payments

1. Apply for Residence: applicants who are not already resident in Malta are advised to start the process of residency to set the clock ticking on the 1 year or 3 years residency requirement. A deposit of €10,000 is required at this stage on account of the €750K contribution: . Additionally, a fee of €1,027.50 is payable per dependent.

2. Citizenship Eligibility Application: Once the Maltese residence cards are issued (4 weeks), the Citizenship Eligibility Application can be submitted to Agenzija Komunita Malta.

3. Agency Performs Due Diligence: Komunita Malta Agency performs Tier 2 due diligence and ensures the correctness and completeness of the application. At this stage, the Agency may request further information and documents in the form of reports. Following the necessary clarifications, the Agency performs Tier3 and 4 due diligence and presents the application and its findings to the Minister.

4. Eligibility Decision: On the Minister's instructions, the Agency informs the Licensed Agent of the Minister's decision whether the applicant is eligible to apply for Maltese citizenship.

5. Citizenship Application: After 12 or 36 months from the date on the residence cards, the agent submits the final citizenship application to the Agency. The Agency updates its due diligence on the applicant and presents its final findings to the Minister.

6. Citizenship Decision: On the Minister's instructions, the Agency informs the Licensed Agent of the Minister's final decision on the granting of Maltese citizenship.

7. Investments: Applicant must at this stage make the non refundable exceptional investment, rent or purchase property and fulfil the donation to the approved NGO.

8. Oath of Allegiance: Applicant is invited to come to Malta to take the Oath of Allegiance and the applicant is granted Maltese citizenship.

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Grounds for Refusal of Malta Citizenship by Investment

Agenzija Komunita Malta will regard all applications on a case by case basis and conduct a four tier due diligence process. An individual cannot apply for citizenship in Malta if:

• he or any of his dependants is or was indicted before an International Criminal Court, or is listed with Interpol or Europol,
• he or any of his dependants is an actual or potential threat to Malta's national security or public health
• he or any of his dependants has been charged or found guilty of crimes related to terrorism, money laundering, financing of terrorism, war crimes, crimes against humanity, and crimes that disturb the good order of the family.
• he or any of his dependants has been denied a visa to a country with whom Malta has visa-free travel arrangements and has not subsequently obtaine a visa from that same country
• he or any of his dependants is named or listed in international sanctions

Applicants who are nationals of or have close ties to the following listed countries shall not be eligible to apply under the citizenship regulations.  These countries are: Afghanistan, Belarus, the Democratic Republic of Congo, Iran, North Korea, Somalia, South Sudan, Sudan, Syria, Russia,Venezuela, and Yemen.

Grounds for Revocation of Malta Citizenship by Investment

The revocation ("deprivation") of Maltese citizenship is well regulated and is governed by Article 14 of the Maltese Citizenship Act. Legitimate grounds for deprivation of citizenship would be that:

• citizenship was acquired by means of fraud, false representation or the concealment of any material fact or
• applicant fails to comply with any material obligations under the citizenship regulations
• applicant becomes a threat to national security or is involved in conduct which is seriously prejudicial to the interests of Malta

We offer the following services in relationship to Malta Citizenship by Investment:

• advising you on your eligibility and your chances of success before filing your application;
• providing you with pre-immigration legal and tax advice;
• guiding you with the preparation and forwarding of the necessary documentation;
• vetting and preparing all supporting documentation for submission;
• assisting you with the purchase / rental of property in Malta including applications for AIP permits (foreigners need AIP permit to purchase property in Malta), reviews of your contract, liaising with the notary.

Applications for Maltese Citizenship by Investment are to be made to and processed wholly by Agenzija Komunita Malta. Dr Priscilla Mifsud Parker is a Licensed Agent, holding licence AKM-ACCA.

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