Making The Move to Malta: Navigating Residency and Citizenship

March 17, 2023 Savannah Zimmerman

Malta, a small island nation located in the Mediterranean Sea, has become an increasingly popular destination for people seeking to establish residency or citizenship in the European Union. It’s easy to see why. With its warm climate, beautiful beaches, and rich history, Malta is a wonderful location and dream home for many people. Plus, there are many incredible financial benefits and opportunities that come with living there.

Making the move across the world can be daunting, but we’ve put together some valuable information about the process of making the move to Malta. We’ll cover the various residency and citizenship options available and some of the many benefits of living in Malta.

Malta Citizenship By Investment

The new Malta Citizenship by Naturalization for Exceptional Services by Direct Investment (MEIN) is one of the most popular ways to obtain Maltese citizenship. This new Maltese citizenship program was introduced in 2022 to follow up on the first Maltese Citizenship-by-Investment Program and has since become a popular option for high-net-worth individuals looking to establish a presence in the European Union.

The Malta Citizenship by Investment program requires applicants to make a significant investment in the country, this in the form of a donation to the National Development and Social Fund (NDSF), the purchase or lease of property in Malta, and investment in government bonds or stocks. The amount required varies depending on the type of investment, but typically ranges from €650,000 to €1.2 million.

Applicants must also meet certain requirements, including a clean criminal record, good health, and a minimum age of 18 years for the main applicant. Once approved, applicants and their families are granted Maltese citizenship, which allows them to live, work, and travel freely within the European Union.

Malta Residency By Investment

For those who wish to establish residency in Malta without the intention of obtaining citizenship, the Malta Residency by Investment program may be a good option. This program allows individuals and their families to obtain residency in Malta by making a qualifying investment in the country.

The investment options include the purchase or lease of property in Malta, investment in government bonds, and a financial contribution to the Maltese Republic.

Once approved, individuals and their families are granted a residence permit, which allows them to live and work in Malta. The permit is valid for five years and can be renewed thereafter.

Malta Tax Residency

For those who prefer to seek a fast and easy way to Malta, the most favourable tax haven in Europe, the Global Residence Program is open to non-EU citizens. Alternatively “The Residence Program” (TRP) which is aimed at EU citizens is the right choice. The Residence Program maintains the same conditions as the Global Residence Program for its applicants.

In order to qualify for this, you need to commit to become a tax resident in Malta by paying an annual minimum tax of 15,000 EUR and to rent or buy an apartment in Malta. Additionally you must commit to not be present in any one other country for 183 days or longer per calendar year. This as you would automatically become a tax resident in such other country.

Malta Citizenship

For individuals who do not wish to make a significant investment, there are other ways to obtain Maltese citizenship. The most common route is through residency, which requires individuals to live in Malta for at least five years as legal resident before becoming eligible for a regular citizenship application in Malta.

To obtain citizenship through residency, applicants must first obtain a Maltese residence permit. After five years of continuous residency, individuals can apply for citizenship.

During the residency period, you must demonstrate that you are financially self-sufficient and have a clean criminal record. Under the current provisions of the law, you do not need to as pass a Maltese language test as long as you speak good English, also currently there is no mandatory integration course where one would need to show knowledge of Maltese culture and history.

Benefits of Citizenship and Residency in Malta

There are many benefits to a Malta citizenship. Malta is a member of the European Union, which means that anyone with Maltese citizenship or residency can live, work, and travel freely within every EU country member state and within the EFTA states including Switzerland and Norway.

Financial benefits are plentiful as well. Malta has a favorable tax regime, with a corporate income tax rate of 35%, and only 5% effective tax rate for shareholders who are non-domiciled in Malta. For private individuals non-domiciled residents pay personal income tax on funds which are transferred to Malta only. Funds which remain abroad are not considered for personal income tax as long as the Maltese resident or citizen is not considered domiciled in terms of Maltese tax law.
The country also offers various tax incentives and exemptions for foreign investors and entrepreneurs, including freedom of income and capital movements.

And of course, there’s the environment. The island boasts a high quality of life, with a warm climate, beautiful beaches, and a rich history and culture. The country has a highly developed healthcare system and excellent education facilities, including several international schools.

Benefits of Setting up a Company in Malta

Malta is home to a talented workforce, with good education, knowledge of multiple languages, in a diversified economy with strong tech and financial sectors. The second official language is English, which makes for a smoother transition when it comes to communicating with your local employees and clients.

Malta tax rates are beneficial for many looking to set up a company in Malta. Corporate tax profit tax rates in Malta can be as low as 5% with the right structuring.

Citizen Lane assists clients looking to set up a company in Malta by developing their ideas and by offering a variety of services to holistically support with the actual set up. This includes any back-office, compliance, corporate, and tax advisory or business license required for your company to succeed.

How to Move to Malta Through Citizen Lane

If you’re looking to move to Malta or set up your company in Malta, we can help. Setting up a company in Malta is a relatively fast, simple and direct process for business owners, entrepreneurs and investors. From your company registration to sourcing your company office, we will provide you with a step-by-step process for your Malta company formation. We make sure to provide a high-quality service that will holistically and successfully support your business set up.