The Malta Citizenship by Exceptional Services (formerly known as IIP) is a citizenship by investment programme that was introduced in 2021 as part of an update to the previous programme. All beneficiaries under the programme are granted Maltese citizenship and issued with a Maltese passport. A holder of a Maltese passport is not only entitled to study, work and reside anywhere within the European Union, but the passport also provides visa free travel to over 180 countries.

Eligibility

Applicant Must:

• be at least 18 years of age;
• be a third country national or a EU, EEA or Swiss national;
• be in possession of a valid travel document
• yield evidence of twelve (12) months or 36 (month) residency. In order for the Main Applicant to be concordant with this obligation, s/he would not need to reside physically here in Malta, however s/he would be instructed to produce evidence of visits and valid links to Malta;
• maintain a Global health insurance policy (minimum annual coverage of €50,000) that covers the Main Applicant and his dependents;
• satisfy the rest of the application requirements

Maximum number of Applications 

Applications under these regulations by direct investment shall not exceed four hundred (400) yearly and one thousand five hundred (1,500) in total.

Process

Phase 1 – Application

A residence card valid for thirty-six (36) months will be issued prior to submitting the Citizenship application and marks the commencement of the residency period. This residence card will entitle the holder to reside in Malta, as well as travel freely within the Schengen area.

The applicable costs of the residence card are:

Non refundable deposit EUR 10,000

Residence permit fee, main applicant: EUR 5,000

Residence permit fee, per dependent (if any): EUR 1,000

Phase 2 – Due Diligence

Following the 12 month or 36 month Residency period and submission of the Citizenship application Malta Community Agency will carry out a due diligence check which would take approximately six months to complete.

This is called the M1 Phase and submission must take place within 12 months from the issuance of the residency card.

Application is checked for completion and correctness, ensuring that all the forms have been provided and are adequately completed, together with all the supporting documents and their validity.

An Eligibility Application in process as an M1-A, in which case it can proceed to the next stage unencumbered, or become an M1-B which implies that elements of the application are missing, inadequate or not in line with the criteria provided in this handbook. Amendments can be dealt with accordingly.

The process is designed to ensure that the details provided in the citizenship application are accurate and that the approval of the application would not harm the security or reputation of Malta.

The fees paid for the due diligence check are listed below and are not refundable if the application is refused.

Main Applicant €15,000

Spouse and any dependent over age of 12 €10,000

Citizenship Eligibility Administrative Fee (each applicant: EUR 1,000),

Citizenship Administrative Fee (main applicant: EUR 5,000, dependents: EUR 1,000 each).

Phase 3 – Final Stage – Processing of Citizenship Application

Application documentation is vetted and if found complete, a due diligence update is carried out. The Agency will present to the Minister its findings, for his decision for approval in principle. Applicable administrative fees are to be collected.

Phase 4 – Investment

If the applicant is approved from the Due Diligence process, a letter of approval will be issued by Malta Community Agency requesting the Main Applicant to proceed with his contributions/investments.

A. Government Contribution Fee towards national development and social fund of Malta.

-12 month option (EUR 740,000) or 36 month option (EUR 590,000);

If the applicant is accompanied by qualfying dependants, a further investment of €50,000 per dependent is to be made.

B. Philanthropic Donation of €10,000 to a registered sport, cultural, scientific, philanthropic, animal welfare, or artistic non governmental organisation or society as approved by Community Malta Agency.

C. Acquisition of a Qualifying Property Holding in Malta or Gozo.

The property would need to be retained for a minimum period of 5 years and cannot be used for commercial purposes. In terms of the regulations, a qualifying property is an immovable residential property situated in Malta that is either:

Purchased for a minimum consideration of €700,000 or leased for not less than €16,000 per annum.

During the first five (5) years from the grant of the certificate of Maltese citizenship, the Community Malta Agency may request the applicant to provide any information or documentation as required and may also subject the applicant to an interview.

Phase 5– Completion

Once the 12-month or 36-month residency period has been satisfied and the  contributions/investments have been made, IMA will issue a letter inviting all members of the family to visit the department to sign an Oath of Allegiance.

The certificate of naturalisation and Maltese passport are then issued within approximately seven (7) working days of the Oath of Allegiance.

All beneficiaries under the new Malta Permanent Residence Programme (MPRP) shall be issued with a Maltese residence certificate that would entitle them to reside indefinitely in Malta. 

On completion of the application process, the Malta Residency Agency will therefore issue a certificate with an indefinite validity, as well as a five-year e-residence card, that would automatically be renewed every five (5) years thereafter.

The residence card would significantly facilitate the process of obtaining a work permit in Malta and would also entitle the holder to travel within the Schengen area, without the need for applying for additional visas.

Eligibility

Applicant must:

• be a third country national (TCN) and not a citizen of Malta, the EU, EEA or Switzerland and maintain a health insurance policy;
• be in possession of capital of not less than €500,000, of which a minimum of €150,000 would need to be liquid and readily available.

Process

 

Phase 1 – Submission of Application

The application would be submitted on behalf of the client and a payment of an initial administration fee of €10,000 would need to be paid to Residency Malta Agency that would cover the costs of the governments due diligence process.

 

Phase 2 – Due Diligence

The due diligence process is a four-tier process that takes approximately three (3) to six (6) months to complete.  

  Phase 3 – Investments and Contributions     Government Contribution.

Upon completion of the due diligence check, the applicant will receive a Letter of Approval in Principle and will be required to make two payments.

The first payment would be a payment of €30,000 which would be paid to Residency Malta Agency to cover administrative costs of the agency.

The second payment would be a direct contribution to the Government of Malta and would be calculated on the basis of whether the applicant is opting to purchase or lease a property. 

If the immovable property is:

• Leased then the contribution would be €58,000

 

• Purchased then the contribution would be €28,000

 

Acquisition of a Qualifying Property in Malta.

In terms of the regulations, a qualifying property is an immovable residential property situated in Malta that is either:

– purchased for a minimum consideration of €350,000 (€300,000 p/a if situated in Gozo or the South of Malta).

or

– leased for not less than €12,000 per year (€10,000 p/a if property is situated in Gozo or the south of Malta).

 

Donation to a Philanthropic Organisation

The third and final requirement is a donation of €2,000 to any registered Non-Governmental Organisation in Malta.

 

Phase 4- Completion and Continuous Obligations

Residency Malta Agency shall issue a certificate of residence once the above investments have been completed and the principle applicant will be able to visit Malta to have his biometrics captured.

 

The residency of the family will be monitored annually for the initial five (5)  years and therefore the agent would need to submit a compliance form confirming that the conditions of the programme continue to be adhered to. 

Beneficiaries under the Global Residence Programme will be issued with a residence permit entitling them to reside in Malta, benefit from a reduced fixed tax rate of 15% on all foreign sourced income that is remitted to Malta, as well as travel for touristic purposes within the Schengen area without the need of applying for additional visas.

Eligibility

An individual shall be entitled to apply for special tax status under the GRP programme, if the following conditions are adhered to. The applicant must:

• be a third country national and not a citizen of Malta, the EU, EEA or Switzerland;
• be able to adequately communicate in English or Maltese;
• not benefit from any other special tax status in Malta;
• be in possession of a valid travel document;
• be in receipt of stable and regular resources which are sufficient to maintain himself and his dependents, without recourse to social assistance;
• set up a health insurance policy which covers the main applicant and his dependents in respect of all risks across the European Union.

Process

Phase 1 – Application

Payment of an Administration Fee of €6,000 (Reduced to €5,500 if property is situated in Gozo or the South of Malta) and provision of all relevant documents to Malta International Tax Unit (ITU).

Phase 2 – Due Diligence

Applicant must be deemed to be a “fit and proper person” and satisfy all due diligence checks carried out by the International Tax Unit (ITU), which take approximately six (6) weeks to complete. If the application is approved a letter of Approval in Principle will be issued and the principle applicant will be invited to attend an introduction meeting at ITU.

Phase 3 – Investment

1. Acquisition of a Qualifying Property Holding in Malta. In terms of the regulations, a qualifying property is an immovable residential property situated in Malta that is either:

– purchased for a minimum value of € 275,000 (or in Gozo or the south of Malta for a value of not less than € 220,000)

or

– leased for not less than € 9,600 per annum, (or in Gozo or the south of Malta for an annual rent of not less than € 8750)

The qualifying property must be retained for the duration of his or her stay and must not be shared with any other persons not listed as dependents on the residence certificate. After submitting the Qualifying Property agreement, the investor must then pay the first tax contribution.

Phase 4 – Taxation

The applicant must pay a minimum tax of €15,000 every year; All foreign sourced income which has been remitted to Malta shall be taxable at 15%, with the possibility of claiming double tax relief on such income.

Income generated in Malta would be taxable at 35%. Income generated outside of Malta and not remitted to Malta would not be taxable in Malta, but may be taxable abroad. A beneficiary and his spouse cannot opt for a separate tax computation.

Phase 5 – Completion and Continuous Obligations

Upon completion of all preceding phases, a letter of approval in principal will be issued and then sued to apply for a Maltese residence card. An applicant who has been granted special tax status under the Global Residence Programme must comply with the following obligations on a yearly basis:

1. The Qualified Property Holding must be retained (or replaced with another immovable property that meets the minimum requirements of the programme);
2. The applicant must not reside in any other jurisdiction for a period exceeding 183 days;
3. The health insurance policy must be retained for the duration the stay;
4. Main applicant must not become domiciled in Malta;
5. Pay the required annual tax;
6. Submit an annual tax return, together with an annual declaration confirming that all conditions of the programme have been complied with.

The Key Employee Initiative (KEI) programme has been recently approved by the Maltese Authority for high-qualified TCNs.

The said programme is applicable to managerial or highly-technical posts which require the relevant qualification or adequate experience related to the job being offered in Malta.

Eligibility

In order for a TCN to submit a KEI application, s/he has to be in possession of the following eligibility criteria:

• To receive an annual gross salary of at least Eur30,000 per annum;
• To provide certified copies of relevant qualifications, warrants or the necessary work experience of at least three (3) years;
• To submit a declaration by the prospective employer in Malta stating that the applicant has the necessary credentials to perform the duties being assigned.

Submission of application

Applications can be submitted either whilst the TCN is in Malta or by the prospective employer in Malta whilst the TCN is still abroad.

A list of required supporting documentation to be submitted is available in the following link:

https://identitymalta.com/wp-content/uploads/2016/09/Key-Employee-Initiative.pdf

Further documentation and clarification may be required by the competent authorities upon submission of application.

• KEI applications are to be submitted to the Department of Citizenship and Expatriate Affairs.
• A non-refundable processing fee of Eur280,50 is due upon submission of application.

Timeframe

The Authority should provide preliminary feedback within five (5) working days only from the date of submission of the KEI application. Therefore, the entire procedure is “faster” than that the standard single work permit procedure outlined above.

Beneficiaries under the Malta Retirement Programme will be issued with a residence permit authorising them to reside in Malta for the length of their tax residence. The programme is structured to entice nationals of the EU, EEA and Switzerland who are not in an employment situation and are in receipt of a pension as their standard source of income.

Eligibility

An individual shall be entitled to apply for special tax status under the programme, if the following precepts are abided:

• must be a EU, EEA or Swiss national;
• applicant must hold a qualifying immovable property in Malta;
• payment of an Administration Fee of €2,500;
• purchase a health insurance policy which covers the main applicant and his dependents in respect of all risks across the European Union;
• must be deemed to be a “fit and proper person” and satisfy all due diligence checks carried out by the International Tax Unit (ITU);
• must not benefit from any other special tax status in Malta;
• be in possession of a valid travel document;
• in receipt of a pension that is remitted to Malta and constitutes 75% of the  beneficiaries chargeable income.

Qualifying Property

The main applicant must purchase an immovable property in Malta for a minimum value of € 275,000 (or in Gozo for a value of not less than € 250,000);

or

Lease an immovable property in Malta for not less than € 9,600 per annum, (or in Gozo for an annual rent of not less than € 8,750).

The qualifying property must be retained and not shared with any persons not listed as a dependent on the certificate.

Tax Treatment

The applicant must contribute a minimum tax of €7,500 every year and a further five hundred euro (€500) in relation to every dependent included on the certificate;

All income originating from overseas that has been remitted to Malta shall be taxable at a fixed tax rate of 15%, with the option of claiming double tax relief on such income;

Income generated in Malta would be taxable at 35%. This must not surpass 25% of the total chargeable income earned by the beneficiary;

Income generated outside of Malta and not remitted to Malta would not be taxable in Malta;

A beneficiary and his spouse cannot opt for a separate tax computation.

Continuous Obligations

An individual who has been given special tax status under the Malta Retirement Programme must be in accordance with the following conditions on a yearly basis:

1. The Qualified Property Holding must be retained (or replaced with another property that meets the minimum requirements of the programme);
2. The applicant must not reside in any other jurisdiction for a period exceeding 183 days and must reside in Malta for a minimum period of ninety (90) days a year.
3. The health insurance policy must be retained.
4. must not become domiciled in Malta;
5. Pay his annual tax
6. Beneficiary must not take up employment in Malta
7. Submit an annual tax return, together with an annual declaration confirming that all conditions of the programme have been complied with.
8. Application Process

– Application documents are submitted to the International Tax Unit of Malta (ITU) on behalf of the client, together with a receipt confirming that the administration fee has been paid.

– Upon receiving the documents ITU the will issue an acknowledgment letter and a six-week due diligence process will commence.

– If approved, a letter of approval in principle will be issued and the main applicant would be invited to attend an introductory meeting at ITU.

– Applicant will then be required to submit an agreement for the Qualifying Property and settle his first tax payment.

– A confirmation of tax residence will be issued shortly afterwards.

Beneficiaries under the Residence Programme will be issued with a residence permit and entitled to a special status by the Malta International Tax Unit (ITU) whereby income generated overseas, but remitted to Malta will be taxed at a fixed rate of 15%.

Eligibility

An individual shall be qualify to apply for special tax status under the Residence Programme, if he or she complies with the below criteria:

• applicant must be either an EU, EEA or Swiss national;
• applicant must hold a qualifying immovable property in Malta;
• the applicant must substantiate receipt of regular funds and resources that are sufficient to maintain himself, as well as his or her dependants;
• must be in possession of a valid travel document;
• maintain a health insurance policy covering himself and his dependants;
• must be able to communicate in English or Maltese;
• does not already benefit from any other tax programme in Malta;
• must be deemed to be a “fit and proper person” and satisfy all due diligence checks carried out by the International Tax Unit (ITU).

Administration Cost

Upon application submission an administrative fee of €6,000 must be paid to the ITU (€5,500 if the qualifying property is situated in Gozo or the south of Malta). This administrative fee would cover the due diligence checks and will not be refundable should the application be refused.

Qualifying Property

Applicant must acquire a property in Malta for a minimum value of €275,000 (€220,000 if situated in Gozo or the South of Malta)

Or

Lease a property in Malta for a minimum annual rent of €9,600 (€8,750 if property is situated in Gozo or the south of Malta).

The qualifying property would need to be retained for the duration of the tax residence.

Tax Treatment

All foreign sourced income remitted to Malta shall be taxable at a flat rate of 15%, with the possibility of claiming double tax relief on such income.

There is a minimum annual tax of €15,000 on income that is remitted to Malta;

Income not remitted to Malta would not be taxable in Malta;

Income generated in Malta would be taxable at 35%;

A beneficiary and his spouse cannot opt for a separate tax computation.

Continuous Obligations

The following yearly obligations must be complied with:

1. The Qualifying Property Holding must be retained;
2. must not become domiciled in Malta;
3. pay the annual tax;
4. must not reside in any other single jurisdiction for a period exceeding 183 days;
5. the health insurance policy must be retained
6. Submit an annual tax return, together with an annual declaration confirming that all conditions of the programme have been adhered to.

Application Process

Phase 1 – Application

– Application documents are submitted to the ITU on behalf of the client, together with a receipt confirming that the administration fee has been paid.

– Upon receiving the documents ITU the will issue an acknowledgment letter and the due diligence process will commence.

Phase 2 – Due Diligence

– The process takes approximately six (6) weeks.

-If the applicant is approved from the due diligence process, a letter of approval in principle will be issued by ITU and the applicant will be invited to an introductory meeting at ITU.

Phase 3 – Investments

-If approved the Main Applicant would need to submit his agreement to the Qualifying Property and a confirmation of tax residence will be issued shortly afterwards

– The confirmation letter may be used to apply for a Maltese residence card.

Single-Work Permit

TCNs who wish to work and reside in Malta for a period of time longer than six (6) months must submit a single work permit application (i.e. CEA Form C) and supporting documentation. The single work application encompasses two procedures in one, that of a work permit and that of an e-residence card, granting temporary residence based on the employment of the individual in Malta.

A single work permit is issued in respect of TCNs who work with a specific employer to perform a specific full-time job in Malta. Therefore, the employee cannot use the license to take up a different job, or to work for a different employer even on a part-time basis. All employment licences are normally issued for a maximum duration of one (1) year and can be renewed upon request.

In this respect, it is important to keep in mind that single work permit applications are, generally, subject to labour market considerations by the Authority including, among other things: the national situation in respect of surpluses or shortages in the given occupation and sector; the employer’s history and situation in terms inter alia of recruitment and redundancy patterns; business investments; and contractual commitments.

The TCNs’ skill level, relevant experience and overall suitability for the position in question are also taken into account.

Submission of application

Applications can be submitted either whilst the TCN is in Malta or by the prospective employer in Malta whilst the TCN is still abroad.

Among other documentation, it is essential that the TCN applying for a single work permit is in possession of:

·       one or more than one reference letters covering at least three (3) years of experience relating to the work position indicated in the single work permit application;

·       a contract of employment or letter of intent signed by the applicant and the prospective employer in Malta.

A list of required supporting documentation to be submitted is available in the following links:

 

Checklist for TCN in Malta

·   https://identitymalta.com/wp-content/uploads/2013/12/New-App-Generic-Checklist-for-Third-Country-Nationals-applying-for-a-Single-Residence.pdf

 

Checklist for TCN abroad

·   https://identitymalta.com/wp-content/uploads/2013/12/Checklist-for-Third-Country-Nationals-applying-for-a-Single.pdf

 

Self-Employment Licence

In respect of TCNs, a self-employment license is required and is only granted in exceptional cases.

 

Eligibility

In particular, in order to qualify for self-employed status, a Third Country National must meet one or more of the following criteria:

• Invest in Malta capital expenditure of at least Eur500,000 within 6 months from the date on which the employment license is issued. Capital expenditure shall solely consist of fixed assets (such as immovable property, plant and machinery) used for the business purposes as reflected in the business plan submitted with the application. Rental contracts do not qualify. Such expenditure needs to be supported by receipts in the TCN’s name. The application also needs to be accompanied by a letter of reference in respect of the TCN, from a reputable Maltese bank that certifies that the TCN has the facility to raise such capital;

• A sound business plan is to be submitted with the application by highly skilled innovators who must commit to recruiting at least three EEA/Swiss/Maltese Nationals within eighteen (18) months of establishment. This condition is reserved to persons who are (1) highly skilled (qualification certificates of ISCED Level 6 or higher) and (2) who will be setting up a venture which is highly innovative;

• A person leading a project that has been formally approved by Malta Enterprise and formally notified by the latter to Jobsplus.

Applications containing a firm commitment regarding the engagement of EEA/Swiss/Maltese Nationals as part of the staff complement will assist in the favourable consideration of an application.

On the other hand, if the TCN intends to set up a company and to apply as an employee (i.e. director/owner) of that company, the application needs to be submitted with the Department of Citizenship and Expatriate Affair as this would entitle the applicant for a single work permit application (kindly refer to paragraph 4 above).

Submission of application

Applications shall be submitted to Jobsplus with all required supporting documentation, which are listed in the document titled ‘ELU – FM – 005 New Employment Licence Application Checklist for a Third Country National’ on the following link:

https://jobsplus.gov.mt/resources/forms

Full-detailed information on application, processing and issuance of Employment Licences is indicated in the Employment Licence Guidelines available on the Jobsplus website (www.jobsplus.gov.mt)

• A non-refundable processing fee of Eur230,00 is due upon submission of application.
• Upon getting an employment license, TCNs may relocate their family members to Malta to the extent that the said TCNs give evidence to be in possession of adequate financial means to support each family member.

Timeframe

There is no standard timeframe relating to the issuance of a self-employment license. Therefore, such a timeframe is determined on case-by-case basis.