Malta Citizenship by Investment

The Malta Individual Investor Programme (IIP) offers citizenship in a EU Member State that is stable, neutral and highly respected, tying in a solid investment and a lasting bond with the country.

Successful EU and non-EU nationals can be granted citizenship by a certificate of naturalization, which can also be extended to include their families and dependent. The Maltese authorities guarantee an efficient application process, and the world’s strictest due diligence standards and vetting of applicants, thus ensuring only highly respectable clients will be admitted.

Once a candidate is awarded Malta citizenship, this automatically includes EU citizenship, thus obtaining the right of establishment in all 28 EU countries and Switzerland. Other benefits include the ability to work and/or set up business in Malta and visa-free travel to more than 160 countries in the world, including the USA.

The main applicant must be at least 18 years of age and may also add to a citizenship application for his/her spouse, as well as children and parents or grandparents, given that certain conditions are met.

A significant contribution to a Malta National Development and Social Fund established by the Government is required, including a financial contribution of €650,000 for the main applicant and an additional €25,000 per direct dependents, including the spouse and minor children. In the case of dependent children that are 18 to 26 years of age, or dependent parents over 55 years, a €50,000 contribution is applicable.

The applicant must also commit to retain a residence in Malta for a period of at least 5 years, either through the purchase of a property for which the minimum value must exceed €350,000, or by renting out a property for which the minimum annual rent must exceed €16,000
An investment of €150,000 in Government approved financial instrument is required, which must be maintained for a minimum period of 5 years.
Residency status: on buying/renting their property in Malta, citizenship candidates are issued an identity card. Citizenship is granted after 12 months from date of property purchase or rental. Candidates need not spend 365 days in Malta before citizenship is granted. Residence is defined under Maltese law as an intention to reside in Malta for any fiscal year, usually evidenced by a stay of a minimum of 183 days or by the purchase / rental of property together with a visit to Malta.

Taxation: The acquisition of Maltese citizenship under the IIP does not have any tax consequences, and even if one’s residence is moved to Malta, one would still retain the status of a non-domiciled person and thus have a limited, advantageous tax exposure.

Candidates that become residents and domiciled in Malta are required to pay income tax on their worldwide income. Personal income is taxed at progressive rates. However, individuals that are resident in Malta but not domiciled in Malta will only be required to pay tax on income arising in Malta and income (excluding capital gains) that arises outside Malta that is received in Malta.

Malta has concluded double taxation treaties with around 60 countries with a number of other agreements signed but not yet in force.
The standard VAT rate in Malta is of 18%. The corporate tax rate is 35%, however special tax concessions apply for non-resident / non-domiciled owners.