Legal Residence in Malta as an Alternative to Maltese Citizenship

Malta is an economically developed country, a member of the European Union and the Commonwealth of Nations. It offers a beneficial tax system and wide possibilities for doing business and growing your wealth. It is possible to become a citizen of Malta by investment but the required investment amount is quite substantial. You can acquire legal residence in Malta at a lower cost if you apply for the Malta Global Residence Programme (MGRP).
Legal residence in Malta: general information
A legal residence permit is a document that allows living in a foreign country for a long time. It is possible to acquire a residence permit in Malta without making investments: you can marry a local person, enter a Maltese school or university, or find a job in the country. However, if you are prepared to spend some money instead of spending your efforts, the Global Residence Programme should be of interest to you. You can also use this opportunity to become a tax resident of Malta.
How to acquire a residence permit in Malta
It makes good economic sense to acquire a residence card through the MGRP. You don’t have to have millions of euros to be able to afford it. The scheme boasts the following main advantages:
- Your relatives can be added to the application for legal residence in Malta.
- You are entitled to apply for a job in the country.
- Your foreign income will be taxed at 15% on the condition that you pay at least 15,000 euros in taxes per year.
Non-residents of the EU are eligible to apply for residence permits in Malta. The goal of the program is to attract foreign investors who would buy real property in the country.
Necessary conditions:
- You have to have a Property Ownership Certificate or a long-term rent agreement for a livable piece of property in Malta.
- The administrative fee that you pay for the property has to be at least 6 thousand euros.
- You have to physically reside in Malta for more than 183 days per year.
In addition to the main applicant, his/ her spouse, their children below 25, and their parents above 55 are eligible to apply for legal residence in Malta. Other family members can also be added to the application but you will have to prove that they are financially dependent on the head of the family. Your residence permit is going to be a temporary one. You can apply for a permanent residence permit too but a large investment is going to be required in this case.
If you are an affluent individual, you can consider applying for citizenship of Malta. The Maltese Exceptional Investor Naturalization (MEIN) Programme is the name of the citizenship-by-investment program currently available to foreign nationals. You will have to invest more than a million euros in total and wait for more than a year before you can acquire a Maltese passport. Please follow the link if you would like to find out about Maltese citizenship acquisition in more detail.
Terms and conditions of Malta Global Residence Programme
The applicant shall be a capable person of age with no criminal past. His or her income shall be sufficient for sustaining him-/ herself and the family members included in the application for residence in Malta. The following payments are due:
- State duty (administrative fee):
- €6,000 for pieces of property on the island of Malta;
- €5,500 for pieces of property on the island of Gozo.
- Purchase of property:
- €275,000 if the property is on the island of Malta;
- €220,000 if the property is on the island of Gozo.
You don’t have to buy property in Malta to qualify for legal residence in the country: you can rent property there. In this case, your annual rent has to be at least €9,600 for Malta and at least €8750 for Gozo.
The process of acquiring legal residence in Malta in 2023
The MGRP scheme was launched in 2021 and its popularity with foreign investors has been growing since then. This should not be surprising because the Programme offers several important advantages to the applicants that we list below.
- You don’t have to make any extra payments for the family members that you are adding to the application for residency. What you do have to do though is prove that you are able to support all of them.
- Your investment is going to be returnable if you purchase a house or an apartment in Malta rather than rent it. Moreover, you can make a profit when you sell your property after a few years because property prices are constantly growing in the country.
- You can live on a beautiful island in the Mediterranean.
- You will have visa-free access to the Schengen zone.
- You can work in Malta including working for a company based in another EU country.
- You can open and grow a business company in Malta while paying taxes at comparatively low rates.
Available options for obtaining a residence card in Malta
You have two options to choose from:
Type of investment | Option 1, euros | Option 2, euros |
Property purchase | from 220,000 | х |
Property rent (for five years) | х | from 43,750 |
Administrative fee | 5,500 | 5,500 |
Total | 225,500 | 49,250 |
Please note that these investment amounts apply to the island of Gozo and the southern regions of Malta. If you want to purchase property in the north of Malta, larger investments are going to be required:
Type of investment | Option 1, euros | Option 2, euros |
Property purchase | from 275,000 | х |
Property rent (for five years) | х | 48,000 |
Administrative fee | 6,000 | 6,000 |
Total | 281,000 | 54,000 |
You cannot sell your house or let it on a lease for 5 years if you want to keep your residence permit. The non-returnable part of the investment is 6,000 euros if you purchase property and it is 54,000 euros if you choose to rent it. Your residence permit is going to be valid for 1 year and you can extend it if you still own the property or if your rent agreement is still in force.
Your solvency is also an important thing to prove. You have to have at least 15,000 euros per applicant for Maltese residence in your bank account and you have to bring a bank statement to show it.
Steps in the process of acquiring legal residence in Malta
The procedure is going to be rather simple especially if you use some professional assistance. The process of obtaining Maltese residency can be divided into eight steps:
1. Prepare the application documents;
2. Apply for legal residence in Malta;
3. Pay the administrative fee;
4. Go through the due diligence procedures;
5. Obtain application approval;
6. Make the required investment;
7. Visit Malta to submit your biometrical data;
8. Obtain a Maltese residence card.
The process of acquiring legal residence in Malta is going to take a few months mainly because of the due diligence checks. However, if you buy property in Malta and sell it back after five years at a higher price (which you will be able to do with a 99% guarantee), you can live on a warm and sunny island at no extra cost! Doesn’t it sound tempting indeed?