Patricia Casaburi The Malta Individual Investor Programme (IIP), introduced in 2014, allowed foreign investors to gain Maltese citizenship through a combination of investment and residency. It ran successfully until 2020 when it was officially closed. In its place, Malta launched the Citizenship by Naturalization for Exceptional Services by Direct Investment (CES) program in 2021.
The CES program requires applicants to obtain Maltese residency for a set period before applying for citizenship. This new scheme aims to attract high-value investors while placing a stronger emphasis on due diligence and background checks. This ensures that only reputable individuals are granted citizenship.
This article will explore the replacement of the Malta Individual Investor Programme (IIP), covering everything from how to apply and eligibility requirements to the full application process and fees involved.
This is what to expect:
- What is the Malta Individual Investor Program (MIIP)?
- Who qualifies for the Malta Individual Investor Program replacement?
- Benefits of Malta Citizenship by Naturalization for Exceptional Services (CES)
- How to Apply for the Malta CES Program
- Malta Citizenship by Investment Processing Time
- Tax System in Malta
What is the Malta Individual Investor Program (MIIP)?
The Malta Individual Investor Program (MIIP) was Malta’s citizenship by investment program, allowing investors to obtain Maltese citizenship through a combination of donations, real estate investments, and bonds. It was replaced in 2020 by the Maltese Citizenship by Naturalization for Exceptional Services by Direct Investment, following pressure from the EU for stricter regulations.
The new program introduced tougher due diligence checks and longer residency requirements, requiring a minimum €600,000 contribution for a three-year residency route or €750,000 for a one-year fast-track option, alongside a €700,000 property purchase or €16,000 yearly rent for five years. This overhaul prioritizes more extensive background checks and stronger ties to Malta before granting citizenship.
Who qualifies for the Malta Individual Investor Program replacement?
Here are the eligibility requirements for the Malta Citizenship by Naturalization for Exceptional Services (CES).
- Applicants must be at least 18 years old.
- Must have global health insurance coverage of at least €30,000 and be healthy without any contagious diseases.
- All applicants (12 years and older) must pass strict background checks.
- Must not have been previously denied a visa to any country with a visa waiver agreement with Malta.
- Applicants must not be considered a national security or reputation risk.
- Must not be under criminal investigation and have a clear criminal record.
- Applicants cannot be citizens of, reside in, conduct business in, or have significant ties to:
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- Afghanistan
- Belarus
- Democratic Republic of Congo
- Iran
- North Korea
- Russia
- Yemen
- Applicants cannot hold citizenship from a country on the US travel ban list.
Benefits of Malta Citizenship by Naturalization for Exceptional Services (CES)
- EU Citizenship: Once you have Maltese citizenship, you can live and work in any EU country.
- Global Mobility: The Maltese passport allows visa-free or visa-on-arrival access to over 180 countries.
- Family Reunification: The program covers your spouse, children (under 18, dependent, or in full-time education), and dependent parents and grandparents.
- LGBT+ Friendly: Same-sex couples can apply, and Malta is known for being progressive on LGBT+ rights.
- Healthcare: Malta has one of the best healthcare systems globally.
- World-Class Education: Access to high-quality education.
- ETIAS and EES Exemption: No need to worry about the European Travel Information and Authorization System (ETIAS) or Entry/Exit System (EES) requirements.
- No Language Requirements: You don’t need to speak Maltese, and English is one of Malta’s official languages.
- Tax Benefits: Malta doesn’t tax non-residents and offers personal and corporate tax incentives, making it ideal for financial planning.
How to Apply for the Malta CES Program
The Malta CES process is divided into 4 stages: Residency Application, Eligibility, Citizenship, and Naturalisation.
Stage 1: Residency application
The first step is applying for a Maltese residence card. The main applicant and dependents must pass a due diligence check conducted by the Community Malta Agency (CMA). To apply, the main applicant must secure an address in Malta which can be separate from the property required for the CES program.
Once approved, applicants receive a 36-month temporary residence card. All applicants must visit Malta to submit their biometric data. It’s important to note that an apartment must be leased before submitting the residency application.
Fees for residency submission:
- €10,000 non-refundable deposit (deducted from the final investment).
- €5,000 for the main applicant + €1,000 per dependent (government fees).
- €28 residency card fee per applicant.
Stage 2: Eligibility for citizenship
Within 12 months of receiving the residency card, the main applicant must submit an eligibility application to the Community Malta Agency (CMA), which conducts a four-tier due diligence check, including background verification, source of funds analysis, and criminal record checks, before forwarding the application to the Minister for approval. This process takes about 8 months, and if successful, the applicant receives a Letter of Approval in Principle, allowing them to apply for citizenship after completing their chosen 12- or 36-month residency period.
Due diligence fees and other fees for eligibility submission
Due diligence fees (paid within five working days) | Fees due upon receiving Approval in Principle |
€15,000 - Due diligence fee for the main applicant | €740,000 - Balance of Exceptional Direct Investment for the main applicant |
€15,000 - Due diligence fee for a benefactor (if applicable) | €50,000 - Additional fee per dependent |
€10,000 - Due diligence fee per dependent (aged 12+) | €500 - Admin fee per applicant |
€1,000 - Admin fee per applican | €700,000 - Property purchase (optional) |
Stage 3: Citizenship
The applicant can submit their final citizenship application after completing 12 or 36 months of residency (depending on the chosen route). CMA conducts a final due diligence check and presents its findings to the Minister. Once approved, citizenship is officially granted. This final stage usually takes 2-3 months to process. At this point, all required investments, real estate commitments (purchase or lease), and donations must be completed before moving to the final stage.
Stage 4: Naturalisation
The last step is taking the Oath of Allegiance. The main applicant and dependents must visit Malta within 6 months of receiving the Letter of Approval in Principle to take the oath. Once the oath is taken, applicants receive Maltese citizenship, a passport, and a Certificate of Naturalization. The names of all newly naturalized citizens are published annually in the Government Gazette. Although Malta doesn’t require a minimum stay, it’s recommended that applicants spend 14-21 days in the country during the process.
Malta Citizenship by Investment Processing Time
Stage Duration Key Steps | Duration | Key Steps |
Stage 1: Residency | Approx. 45 days | - Submit residency application - Receive residency card approval |
Stage 2: Eligibility for Citizenship | Approx. 6-8 months | - Submit eligibility pack - Wait for E1A (proceed) or E1B (questions) - Address questions if E1B is issued - Final decision from agency |
Stage 3: Citizenship Application | Approx. 2-3 months | - Submit citizenship application pack - Authorities confirm post-approval stage |
Stage 3: Citizenship Application | Approx. 1 month | - Submit remaining investment balance - Submit 3 packs (1. Agency, 2. Registry, 3. Passport) - Receive invitation for Oath and passport application |
To learn more about the Malta Citizenship by Investment Program
Tax System in Malta
Malta’s tax system is based on residency, not citizenship. This means you may not have to pay tax in Malta even if you become a citizen. The country also offers special tax schemes for new citizens, providing additional tax benefits and favorable tax exposure.
To qualify as a tax resident, you must spend at least 183 days per year in Malta.
Malta Tax Rates:
- Personal Tax: Up to 35%
- Corporate Tax: 35% (can be reduced to as low as 5% with exemptions)
- Capital Gains Tax: 15% – 35%
Non-Domiciled Residents (Non-Doms)
Malta offers a special tax scheme for Non-Domiciled Residents (Non-Doms), designed to attract foreign nationals interested in tax efficiency. Under this program, individuals are not taxed on their global income or worldwide assets. Instead, foreign income brought into Malta is subject to a reduced tax rate of 15%, with a minimum tax of €15,000 per year. Also, Malta does not impose an inheritance tax, further enhancing its appeal to international investors and families. The country is also known for its crypto-friendly policies, where long-term crypto capital gains are not taxed, and crypto transactions are exempt from VAT, making it an attractive option for those in the cryptocurrency industry.
As part of our commitment to providing transparent and reliable services, we are proud to be a licensed agent in Malta, holding the official license number AKM-AGEN. This certification demonstrates our dedication to the highest standards in the investment migration industry and further enhances our ability to offer expert guidance and support to our clients.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
Frequently Asked Questions about Malta Individual Investor Program
What is the Malta Individual Investor Programme?
The Malta Individual Investor Programme (IIP) allowed individuals to gain citizenship through financial contributions, including a non-refundable donation, real estate investment, and bond holdings. It ended in 2020 and was replaced by the more rigorous Citizenship by Naturalization for Exceptional Services by Direct Investment (CES) program, which has stricter residency and due diligence requirements.
What are the benefits of the Malta Individual Investor Program?
Some of the benefits of the Malta Individual Investor Programme include being granted Maltese citizenship (EU citizenship), access to great education and healthcare facilities, tax advantages, and Malta citizenship for direct family members (dependents and spouses).
How long does it take to get citizenship through the Malta Citizenship by Naturalization for Exceptional Services?
Gaining Malta citizenship through the Malta Individual Investor Programme can take anywhere between 12-36 months depending on how much you invest in Malta.
What is the due diligence process for the Malta Citizenship by Investment Program?
Malta has a stringent due diligence process for the IIP, involving multiple levels of screening by the Community Malta Agency to ensure applicants are reputable. It includes:
- Initial Screening: Accredited agents conduct a pre-application check.
- Application Review: The Malta agency verifies documents, financials, and background information.
- External Checks: Independent agencies perform global background checks.
- Final Assessment: All gathered data is reviewed for a final decision.
This thorough process helps maintain the program’s integrity by ensuring only trustworthy individuals are granted citizenship.
What is the Community Malta Agency?
The Community Malta Agency (CMA) is a government body responsible for managing all Maltese citizenship matters. It handles applications for citizenship by birth, registration, long-term residence, exceptional merit, and direct investment.
What are the investment requirements for the Malta CES program?
The main applicant must be at least 18 years old. An investment of at least €600,000 is required if you’ve completed 36 months of residency in Malta, or €750,000 if you’ve resided there for 12 months. Additionally, you need to purchase a residential property in Malta worth at least €700,000, which must be held for a minimum of five years.
Who is eligible for the Malta citizenship by investment program?
The Malta Citizenship by Investment program is open to individuals over 18 with a clean criminal record, good health, and sufficient financial means. Applicants must make a qualifying investment, pass a strict due diligence process, and fulfill a residency period of 12 or 36 months before applying for citizenship. Family members, including spouses, children, and dependent parents or grandparents, can also be included.
Can family members be included in the Malta Citizenship by Naturalization for Exceptional Services?
Yes, family members can be included in the Malta Citizenship by Naturalization for Exceptional Services program. This includes the main applicant’s spouse, dependent children, and dependent parents or grandparents, provided they meet the eligibility and financial requirements.
