Malta Citizenship by Investment Changes: What You Need To Know

In late 2020, the Maltese government rehauled the way it offers citizenship by investment to qualifying candidates under the Maltese Citizenship Act, and as such, Malta citizenship by investment changes came into effect in 2021. 

While Malta does not offer citizenship by investment anymore, it has a new program that paves a path to citizenship by naturalization.

In this article, you will learn all about:

• Malta Citizenship by Investment changes
• Benefits of Malta’s new investment program
• Eligibility for Malta’s Citizenship by Naturalization Program
• Investment requirements for the CES program
• Application process for the CES program

Malta Citizenship by Investment Changes

Malta’s Citizenship by Naturalization for Exceptional Services by Direct Investment is essentially a new policy for the previous Individual Investor Program (IIP).

Foreign investors and expats who apply to this immigration program are provided with an expedited route to obtaining Malta residency and citizenship through direct investment, provided they place a minimum contribution of €750,000 in Malta’s economy. While the new policy increased the qualifying investment threshold by €100,000, it abolished the previous requirement for an additional investment of €150,000 in Maltese government bonds. This means that the total minimum investment threshold was lowered under the new policy in comparison to the previous IIP.

Although the new investment program’s annual quota of acceptance is capped at 400 applications after the Malta Citizenship by Investment changes occurred, eligible applicants and their immediate family members who comply with the program’s policy have the advantageous opportunity of obtaining Maltese citizenship by naturalization in as little as 12 to 36 months, depending on their investment sum. Investors are required to spend a minimum of 15 days every 12 months on Maltese territory in order to meet the residency requirements and maintain their residency status to be on their path to citizenship.

Benefits of Malta’s New Investment Program

The benefits of the new investment program are almost identical to those of holding the Malta passport.

The top benefits of Malta’s new scheme include:

• Visa-free travel to 170 countries
• Access to a thriving financial hub and prime jurisdiction for international businesses
• Access to excellent, free healthcare and education systems
• A high quality of life and living standards
• Citizenship that can be passed down to future generations

Malta has excellent healthcare and education systems, and the Maltese passport offers its holders visa-free travel to several countries. The passport also allows the holder to live, work, and study in a European Union country with a stable political climate. Additionally, investors in the CES program can yield an annual high return on their investments and benefit from tax exemptions and double taxation treaties.

Eligibility for Malta’s Citizenship by Naturalization Program

Any non-EU, non-EEA, non-Swiss, or third-country national with a clean criminal record and proof of sufficient funds can invest in Malta and qualify for the program. The only conditions are that they do not come from a sanctioned country, are not benefitting from other schemes, have a valid health insurance policy and travel documents recognized by Malta, and are able to fulfill the program’s residency and investment requirements.

Moreover, applicants to the program must not have been previously denied a visa to a country that’s in a visa waiver agreement with the island nation, nor have conducted business, or have significant ties or connections to the Islamic Republic of Iran, the Islamic Republic of Afghanistan, or North Korea.

Here are the eligibility requirements for Malta’s Citizenship by Naturalization Program:

• Be a non-EU, non-EEA, non-Swiss, or third-country national
• Have a clean criminal record
• Have sufficient funds to invest in Malta
• Have a valid health insurance policy
• Have travel documents recognized by Malta
• Not be previously denied a visa to Malta

Investment Requirements for the CES Program

There are three main investments that need to be made in the Maltese economy in order for applicants to qualify for Malta citizenship through the naturalization program.

These investment requirements are as follows:

Application Considerations

All applicants and their dependent family members must pass several stages of a strict due diligence process in order to succeed in obtaining Maltese citizenship by naturalization. The process is conducted by the Community Malta Agency (CMA) and ensures only the most qualified and high-standing individuals are naturalized.

As part of its monitoring process, the Community Malta Agency continues to check in on the naturalized citizens for a period of five years after they are officially integrated, in order to make sure they are still in compliance with the program’s requirements. Otherwise, their Maltese citizenship will be revoked.

Application Process for the CES Program

From the time you submit your application for a Maltese residence permit, to the time you acquire citizenship by naturalization, the scheme’s application process takes between 12-36 months, depending on your investment sum.

The steps under Malta’s CES scheme that lead to obtaining citizenship by naturalization are as follows:

• Filing of the application for Maltese residency
• Submission of eligibility assessment and due diligence checks
• Issuance of Approval in Principle after the application payment and administrative fees have been covered
• Submission for Naturalization for Exceptional Services by Direct Investment after placing the respective investments
• Oath-swearing and acquiring Maltese citizenship and the Maltese passport

Due Diligence in Malta

The Malta Citizenship by Investment program comes with a strict due diligence process. The process consists of four steps to ensure high standards.

This is how the process looks like:

1. Step one: Submitting the necessary paperwork, such as residency and citizenship application forms as well as birth and marriage certificates.
2. Step two: Submitting additional documents if requested.
3. Step three and four: Detailed checks by anti-money laundering professionals

Then, your application is reviewed. This will take a couple of months to be completed.

Taxes in Malta

It’s important to understand that getting Malta citizenship doesn’t immediately mean you are a tax resident. Tax residency is typically determined by the number of days you stay in Malta. You have to spend six months a year in Malta to be considered a tax resident.

Tax residents who aren’t domiciled in Malta are taxed on income and capital gains. Usually, capital gains that aren’t brought to the country are non-taxable.

When it comes to property tax, you can sell it without taxes after three years (if this is your sole residence).

Finally, Malta doesn’t impose inheritance tax, wealth tax, or annual property taxes. This makes Malta one of the most attractive investing destinations in Europe.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique investment migration consultancy firm focused on finding the right residency or citizenship by investment program for individuals wishing to secure their future and become global citizens. With offices in Portugal, the United Kingdom, Hong Kong, and Brazil, our multilingual team guides individuals and families from start to finish, providing expert advice considering freedom, mobility, taxation, and security.

• We have helped hundreds of clients from 35+ countries in all the top residency by investment and citizenship by investment programs. With an in-depth and comprehensive understanding of the area, we provide our clients with solid guidance. 
• Our team has never had a case rejected. Our 100 percent approval rate sets us apart from our competitors and guarantees that you can expect a successful application.
• Our transparent pricing covers all the processes from opening your bank account, document certification, and legal due diligence to investment and submission. As there is one fee for the entire process, you can be confident that you will not face any hidden costs later.
• All data is stored within a GDPR-compliant database on a secure SSL-encrypted server. You can be safe knowing that your personal data is treated with the utmost security.
• Global Citizen Solutions provides an all-encompassing solution. Our support can continue even after you receive your passport. We offer additional services such as company incorporation, Trusts, and Foundations formation.
• The BeGlobal Onboarding System® allows you to access the status of your application every step of the way, something that sets us apart from our competitors.

Frequently Asked Questions About Malta Citizenship by Investment Changes

What are the latest changes in Malta's Citizenship by Investment program?

The latest changes in Malta’s Citizenship by Investment program include the increased minimum investment to €750,000 into Malta’s economy.

You no longer need to make an additional investment of €150,000 in Maltese government bonds.

What are the new requirements for Malta Citizenship by Investment?

The new requirements for Malta Citizenship by Investment program include:

• Investments of €600,000 or €750,000
• Purchase a property with a minimum value of €700,000 or lease a property with rent being at least €16,000 (duration of five years)
• A donation of €10,000 for cultural, scientific, or philanthropic causes
• Complete due diligence
• Meet all standards during ongoing monitoring

What Malta citizenship by investment changes should I know about?

In late 2020, Malta’s prestigious Individual Investor scheme closed, only for a brand new scheme to take its place. Today, the CES scheme is considered more of a policy than anything else, and it welcomes qualifying investors of high social and moral standing to make a significant contribution to the Maltese economy. In turn, they are granted Maltese citizenship by naturalization, provided they pass a thorough due diligence process and meet the policy criteria.

Why should I apply for the Malta citizenship program?

Maltese citizenship is a goldmine for international investors looking to tap into an opportunity of a lifetime. Malta’s citizenship by naturalization program allows high-standing applicants and their immediate family members to place a foreign investment in the beautiful nation, and enables them to relocate to Malta, become Maltese citizens, and have full residency rights in Europe.

How to apply for Malta's new program of citizenship?

You must pass a thorough due diligence process conducted by the Community Malta Agency, meet the policy criteria of the Maltese citizenship by naturalization program, and make the necessary investments to be successful in your application.

What is the Community Malta Agency?

Community Malta Agency is a regulating agency that deals with all the administrative affairs of the CES policy. It holds considerable power to carry out extensive due diligence and background screenings of applicants for naturalization, and can demand from them full disclosure of assets.