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Malta Citizenship by Investment and Residence Programmes

Prospera Europe Ltd.
01 March, 2016

Malta Citizenship by Investment and Residence Programmes

Being an island in the middle of the Mediterranean, Malta, has always been in continuous contact with foreign investment.  Successful governments have led Malta to become a hub for the financial, aeronautical and maritime industries. 

Part of this development was thanks to becoming a member of the European Union in 2005.  As a result Malta embarrassed a more holistic approach to its legislation and adapted to policies and directives of international organisations such as the Organisation for Economic Co-operation and Development (OECD).  All of this boosted Malta's reputation and economic growth to a higher level.

It is no wonder that there is a lot of interest in making Malta the ideal destination for business, residential and pleasure purposes.

The Government of the Republic of Malta in Legal Notice LN47/2014 has granted naturalisation by investment to trustworthy individuals and their dependants, after a firm and in-depth due diligence process, that makes a substantial contribution to the social and economic development of the country.  This is known as the 'Individual Investor Programme of the Republic of Malta (IIP Malta).

Citizenship obtained under this programme gives right of work and establishment in all 28 EU countries, visa free travel to more than 160 countries.

Prospera Europe Ltd is an accredited agent of this programme holding Licence No. IIP090, therefore it is in a position to assist with the compilation and the submission of an IIP application and liaise with the Government Authorities. Furthermore, should the original documents being requested are not in English, certified true translations can also be provided.

In order to be considered for the Individual Investor Programme of the Republic of Malta (IIP), an applicant must:

  • Be at least 18 years of age;
  • Meet the application requirements;
  • Provide proof of residence in Malta/ hold Maltese Residence Card, establish various links to Malta including some period of presence in Malta;
  • Purchase residential immovable property in Malta of a minimum value of  € 350,000 which must be held for 5 years or leased at an annual rent of at least  € 16,000 p.a for the same period;
  • Invest at least €150,000 in Government Stocks, bonds or other investments as provided form time to time by Identity Malta within the period of 5 years;
  • Be covered by a global health insurance policy with medical expense cover for not less than  € 50,000 per family member.

Furthermore an applicant and his/her dependants must show that they are in a good standing and repute and will undergo various background checks, which mainly include:

  • A clean criminal record and not being subject to criminal investigation
  • Proper background verifications
  • Not being a potential national security risk and/or reputational risk to Malta
  • Never been denied a visa to a country with which Malta has visa free travel arrangements

Along with the application, one must provide originals or certified true copies, translated if not in English of the following:

  • A certificate from a reputable health system that the applicant and his/her dependants are in good health and be in possession of a valid health insurance policy
  • The usual personal documentation such as passports, birth certificates, marriage certificates, etc.
  • Police certificate/s
  • Evidence that the main applicant and his/her dependents are fit and proper persons
  • Remit the total of the required contribution
  • Demonstrate compliance with the property requirement purchase or lease
  • Make other required investments
  • Any other documents that may be require from time to time by Identity Malta

Applicants should also undertake the Oath of Allegiance; all applicants aged 18 years and over are obliged to visit Malta in person to undertake the Oath of Allegiance.

The main applicant must provide an affidavit of support for each dependant who is over 18 years of age with the exception of the spouse.  If an applicant makes a false representation, false statement or the concealment of any material fact, the application may be declined.

The following contributions and investments are also to be done:

Malta Individual Investor Programme

Contribution to the National Economic and Social Development Fund

Principal Applicant:

 €650,000

If applicable, add Spouse:

+ €25,000

If applicable, add for each Dependant aged under 18:

+ €25,000

If applicable, add for each Dependants aged over 18:

+ €50,000

 

 

Malta Individual Investor Programme

Residential Immovable Property

Purchasing Immovable Property

≥€350,000

Leasing Immovable Property

≥€16,000 annually

Such property cannot be let or sublet and must be retained by the applicant for a period of at least 5 years.

 

 

Malta Individual Investor Programme

Investments

Stocks, bonds or debentures (for the period of 5 years)

€150,000

 

Due diligence fees (not refundable)

€7,500 for the main applicant

€5,000 for the spouse

€3,000 for each and every child aged between 13 and 18 years of age

€5,000 for each and every dependant unmarried child between 18 and 26 years of age

€5,000 for each and every dependant parent above 55 years of age

 

Passport fees (refundable in case passports are not applied for)

€500 per person

 

Bank charges (not refundable)

€200 per application

 

Professional fees

A quotation for our professional services tailored according to the client's requirements shall be provided upon request.

 

The Residence Programme Rules

The Residence Programme Rules 2014 confer a special tax status to EU/EEA/Swiss nationals upon satisfying certain conditions, including acquiring a property for not less than €275,000 or renting property for not less than €9,600 per annum. Should the property be situated in Gozo or in the South of Malta, the purchase value should not be less than €220,000 and the rental value should not be less than €8,750 per year.

Applicants must be in receipt of stable and regular resources and must hold adequate health insurance covering the EU territory. Individuals must satisfy a “fit and proper test” in order to be granted a permit under this Programme. Applicants may not spend more than 183 days in any other one foreign jurisdiction.

A 15% rate of tax is charged in respect of foreign income remitted to Malta, with the possibility of claiming double tax relief. The minimum annual tax stands at €15,000 after claiming any applicable double tax relief. A one-time registration fee amounting to €6,000 is levied by the Malta Government.

After being granted such a special tax status, one would be in a position to apply for the residence card.

An application under this programme may only be submitted through an Authorised Registered Mandatory.  Prospera Europe, as an Authorised Registered Mandatory, may assist you with your application.

 

The Global Residence Programme Rules

In order to avail from the Global Residence Program Rules the beneficiary must:

  1. Not be a Maltese/ EEA/ Swiss national;
  2. Not benefit from any other special tax status;
  3. Hold a qualifying property;
  4. Be in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta;
  5. Be in possession of a valid travel document;
  6. Be in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals, for himself and his dependents;
  7. Be fluent in either Maltese or English; and
  8. Be a fit and proper person.

GRP Rules confer a special tax status to Non-EU nationals in receipt of stable and regular resources. Applicants need to acquire a property for not less than €275,000 or rent a property for not less than €9,600 per annum. Should the property be situated in Gozo or in the South of Malta, the purchase value should not be less than €220,000 and the rental value should not be less than €8,750 per year. Apart from holding adequate health insurance covering the EU territory, applicants need to satisfy a “fit and proper test”. Applicants may not spend more than 183 days in any one foreign country in a year.

Foreign income received in Malta is taxed at a 15 % rate, with the possibility of claiming double tax relief. The minimum annual tax stands at €15,000 after claiming any applicable double tax relief.

A one-time registration fee amounting to €6,000 is levied by the Malta Government.

After being granted such a special tax status, clients can apply for their residence card on this basis.

For any further information, you may visit the website of Prospera Europe Limited - www.prosperainfo.com or send your requests to email: tatyana.cilia@prosperainfo.com



About the Author


Prospera Europe Ltd.

Prospera is an international group composed of accounting services and related business consulting firms offering. Wealthy individuals and multinational companies, professional accountants and lawyers, banks and other financial institutions around the world - all have been using Prospera's services for their professionalism and integrity, since 1992.

To inquire more about Prospera, visit www.prosperainfo.com, email info@prosperainfo.com, or phone on +356 21 22 4847.

 

 

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