Malta MRVP: All the Changes in the Residence and Visa Program

Are you a non-European national looking to relocate to Malta? Candidates applying to the Malta Residence Program must note that since March 2021 Malta’s MRVP Programme (Malta Residence and Visa Programme) has been replaced by a new program called the Malta Permanent Residence Programme (MPRP).

In this article you will learn about:

• What the Malta Permanent Residence Programme is
• The benefits of the Programme
• The eligibility requirements
• Complete Malta Permanent Residence Programme application process, and more

What is the Malta Permanent Residence Programme?

The Malta Permanent Residence Program (MPRP) is a program that helps non-European nationals a unique opportunity to secure permanent residency in Malta through investment. This MPRP comes with a host of benefits, including visa-free travel to Schengen countries.

While many countries have similar programs for foreign nationals, the MPRP is particularly appealing to high-net-worth individuals from outside the EU, EEA, or Switzerland, including third country nationals.

Malta Residency and Visa Programme- Changes in Qualifying Investment

The entire expenditure for Malta’s MRVP requirements is divided into three parts mentioned below. But do note that with the introduction of the new Malta MPRP Programme, the current requirements have changed slightly.

MRVP Program Vs. Malta MPRP Program

You can visit our article: Malta Residency By Investment- The Ultimate Guide By Experts 2024 to know more on the requirements, especially with regards to investment.

Malta Permanent Residence Programme: Eligibility Criteria

• The applicant should be 18 years and above
• The applicant should be a third country national
• Proof of annual income of €100,000 or more earned outside of Malta or documents showcasing the applicant’s global net worth of or more than €500,000
• The applicant should have a steady source of income to sustain themselves in Malta
• The applicant should possess a medical health insurance scheme that covers the applicant and family on international waters
• Submit a valid health certificate from a recognized health system/facility
• The applicant should  not have any past criminal records
• The applicant must be able to communicate in Maltese or in English
• The applicant and dependents should be able to produce valid travel documents

The eligibility criteria under the new Malta MPRP remains more or less the same. In addition to the above mentioned criteria, candidates need to showcase assets worth €500,000, out of which €150,000 should be financial assets.

Costs of Malta Citizenship by Investment

Here are the following investment costs to obtain residency in Malta:

• Submit a non-refundable administrative fee of €40,000.
• Lease a property for at least €10,000 annually in the South of Malta/Gozo, or €12,000 in other parts of Malta.
• Alternatively, purchase a property for a minimum value of €300,000 in the South of Malta/Gozo, or €350,000 elsewhere in Malta.
• Contribute €28,000 to the government if buying a property, or €58,000 if renting.
• Donate €2,000 to a registered local NGO involved in philanthropy, culture, science, art, sports, or animal welfare.
• Pay an additional €7,500 for each parent or grandparent of the main applicant or their spouse, provided they are principally dependent on the main applicant.

You need to maintain the qualifying property for a minimum of 5 years, after which a residential address in Malta is required. Before making your application ensure you have valid travel documents and acquire a comprehensive health insurance policy covering all risks in Malta.

You should also obtain travel insurance for journeys within the Schengen area.

Benefits of the Malta Permanent Residence Programme

The Malta Permanent Residence Programme offers a range of benefits, including:

No minimum period of stay

The Malta Permanent Residence Programme (MPRP) offers a unique benefit of not requiring a minimum period of stay in Malta. This means that individuals can maintain their status as permanent residents without the need to stay in Malta for a fixed amount of time each year. This flexibility is especially beneficial for those who travel frequently or have commitments in multiple countries.

Visa-free travel across EU Schengen area

Participants in the Malta Permanent Residence Programme enjoy the privilege of visa-free travel across the EU Schengen Area. This opens up a realm of travel opportunities across Europe, allowing for easy business and leisure trips without the hassle of applying for separate visas.

Investment opportunities

The Malta Permanent Residence Programme presents an attractive proposition for those interested in investment opportunities in Malta’s burgeoning real estate market. The initial value of the investment is required only for the first five years, making it a manageable and potentially profitable venture.

Friendly economical tax regulations

One of the key tax benefits of the Malta Permanent Residence Programme is its friendly economical tax regulations. This aspect is particularly appealing to third country nationals and investors looking for tax-efficient environments to grow their wealth.

Family inclusion

A notable feature of the Malta Residence and Visa scheme is the inclusion of family members in the same application. This allows for a unified approach to family residency, ensuring that immediate family members can also enjoy the benefits of living in Malta.

High quality of life

Malta is renowned for its high quality of life, which is a significant draw for the Malta Permanent Residence Programme. The combination of a Mediterranean lifestyle, reputable health system, and educational systems contribute to a living experience that is both enriching and comfortable.

Safety

Ensuring the safety of its residents, Malta is known for having minimal criminal proceedings. This aspect of safety makes it an ideal destination for those looking to reside in a secure and stable environment.

Straightforward requirements and regulations

The Malta Permanent Residence Programme has specific requirements and regulations, designed to ensure that the process is straightforward and transparent for applicants. These include financial requirements, background checks, and adherence to visa programme regulations, ensuring a smooth and secure residency experience.

Malta Permanent Residence Programme Application Process

The application process is quite simple and consists of the following stages:

• You need to gather all your documents and submit your paperwork
• If your application is approved, a Letter of Approval in Principle is provided
• Post approval,  applicants may proceed with the qualifying investment and other fees
• After successful completion of the process, the agency gives the Permanent Residence certificate and residence cards to applicants

Stage 1: Document preparation and submission

In this initial stage, the main applicant must gather all necessary documents, including,

• Personal identification
• Proof of financial stability
• Medical insurance coverage
• A clean criminal record.

The process involves collecting these documents in the applicant’s home country, typically through various legal and financial institutions. The timing should align with the decision to apply for the program, ensuring that all documents are current and accurately reflect the applicant’s situation. This thorough preparation is essential for meeting the Malta Permanent Residence Programme requirements, forming the foundation of a successful application.

Stage 2: Application review and approval in principle

After submitting the application, it undergoes a rigorous review by the Maltese authorities. If all criteria are met, an Approval in Principle is issued. This critical step happens within Malta’s immigration system, where each application is scrutinized to ensure compliance with the program’s standards. The outcome is usually communicated within a few months of submission. This stage is crucial for confirming the eligibility of the applicant for the Malta Permanent Residence Programme and sets the stage for the next steps.

Stage 3: Meeting investment requirements

Following the Approval in Principle, applicants must meet specific investment programme requirements. This involves making a qualifying investment in Malta, which could include purchasing or leasing property situated in Malta and investing in government-approved bonds or funds. The investment is a key component of the application, demonstrating the applicant’s commitment and financial contribution to Malta. The purpose of this stage is to fulfill the financial obligations of the residency program and to establish a tangible link with the country.

Stage 4: Final approval and issuance of residence permit

Upon successful completion of the investment and final vetting, the Maltese authorities issue the Maltese Residence Permit, which includes the Permanent Residence certificate and residence cards. This final stage occurs in Malta, often requiring the applicant’s presence to receive the documents. The residence permit is the formal recognition of the applicant’s new status as a resident of Malta, allowing them to enjoy the benefits associated with this status, including tax residency in a favorable fiscal environment.

The Malta Residence and Visa Programme Certificate

The Malta Residence and Visa Programme certificate, which is a type of residence permit, plays a crucial role in the lives of those legally residing in Malta under this specific program. This certificate is not just a formal document; it symbolizes the holder’s right to live, work, and stay in Malta indefinitely, offering a semblance of permanence and stability akin to a similar status held by Maltese nationals.

When an applicant is approved under the Malta Residency and Visa Programme, they receive this certificate, which acts as a testament to their legal status in the country. This status is especially valuable for those seeking a long-term residence in an EU country, providing them with a range of benefits and rights within Malta. Moreover, it allows the holder to travel within the Schengen Area, provided they have a valid travel document, like a passport.

MPRP Dependents

An important aspect of this program, particularly for those with families, is the inclusion of qualifying dependents. This means that spouses, children, and sometimes other family members can also be granted residence under the main applicant’s certificate, thus facilitating family unity.

How Long Is the Malta MPRP Valid For?

The Malta permanent residence certificate comes with an initial review period of five years. During this time, the authorities conduct annual reviews to ensure that the holders continue to meet the necessary criteria, such as maintaining their investment in the country, which could be in real estate or government bonds. This scrutiny is a standard procedure to maintain the integrity of the program and ensure that the benefits are provided to those who genuinely contribute to and reside in Malta.

After the initial five-year period, the certificate is subject to review every five years. This ongoing scrutiny is a part of maintaining the program’s standards and aligns with the regulations of many residence programs worldwide. It ensures that the residents continue to meet the requirements of the new programme and maintain their status within the country.

Tax Scheme for Maltese Residents

The tax scheme for Maltese residents is a structured system that aligns with the principles laid out in the Immigration Act and various legal notices pertaining to taxation. Under this system, taxes in Malta are levied based on residence or domicile, which directly impacts individuals participating in the Malta Permanent Residence Programme or those with Maltese residency.

Key tax types for Maltese residents

• Income Tax: Maltese residents are taxed on their personal income. This includes income generated within Malta as well as, under certain conditions, income earned globally. The tax rates for individuals vary, starting at 0% for income up to a certain threshold and then progressively increasing up to 35% for higher income brackets.
• Capital Gains Tax: This tax is applied on the profit gained from the sale of certain types of assets, including qualifying property. The standard rate for capital gains tax in Malta is 12% of the transfer value or the profit, whichever is higher.
• Remittance basis taxation: For residents whose permanent residence is not in Malta, a remittance basis of taxation is applied. Under this system, they are taxed only on the income that is received in or remitted to Malta, not their worldwide income. This system can be particularly beneficial for expatriates or those under the Malta Permanent Residence Programme who may have sources of income outside Malta.
• Value Added Tax (VAT): VAT in Malta is applied to most goods and services. The standard rate is 18%, but reduced rates and exemptions apply to certain items and services.
• Property tax: While Malta does not have a typical annual property tax, there are taxes related to the purchase and sale of property. For instance, when purchasing a property, a stamp duty of 5% is generally applicable on the property value.
• Inheritance tax: Malta does not impose an inheritance tax, but there are other related duties that may apply under specific circumstances.

Special considerations

• Principally Dependent: For individuals with dependents, the tax system may offer certain deductions or allowances, depending on the nature of their dependency.
• Double Taxation Relief: Malta has agreements with many countries to avoid double taxation, ensuring that residents do not pay tax twice on the same income.
• Tax Compliance: All residents must comply with Maltese tax laws and regulations, and are required to file annual tax returns if they meet certain criteria.

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 the Malta Permanent Residence Programme

How do I get residency in Malta?

To obtain residence in Malta, you can apply through the Malta Permanent Residence Programme (MPRP). This residence programme involves meeting certain criteria, including financial investments and proof of stable income. By fulfilling these requirements, you earn the right to reside in Malta, enjoying the benefits and quality of life the country offers.

Can I live in Malta after Brexit?

For third country nationals or the UK citizens, residing in Malta post-Brexit, requires a residence permit, working visa, student visa, or a retirement visa. For stays longer than three months, applying for residency or obtaining a suitable visa is essential. These regulations ensure that you legally reside in Malta and enjoy the same privileges as other residents.

Does Malta offer permanent residency?

Yes, Malta offers permanent residency. There are various visa options depending on your situation. For example, the requirements for Malta permanent residency for students is different for retiaries.

What is the health insurance coverage amount that I need to have to apply for MRVP?

When applying for the MPRP, you must have a health insurance policy that covers health risks up to a minimum of €30,000 in the European Union. This coverage amount is also applicable to all your dependents, ensuring comprehensive health protection for your entire family while residing in Malta.

When was the Malta Residence and Visa Programme changed?

The Malta Residence and Visa Programme (MRVP) underwent a significant change on 29th March 2021. It was replaced with the new Malta Permanent Residence Program (MPRP), reflecting updates in the policies and regulations for applicants seeking residence in Malta.

What is the difference between MRVP and MPRP?

The main difference between the MRVP and the MPRP lies in the eligibility criteria, particularly regarding the cost and qualifying investments. The MPRP has introduced changes in these areas, including revised contributions to streamline the process and make it more accessible to potential applicants seeking residency in Malta.

Can foreigners get PR in Malta?

Malta is known for its welcoming approach to foreigners, including Swiss and third country nationals, seeking PR. Foreigners can indeed get PR in Malta, provided they meet all the necessary criteria and go through the proper channels.

Can I live in Malta permanently?

The ability to live in Malta permanently is one of the key attractions of the program. Once the investment and application requirements are fulfilled, individuals can enjoy a high quality of life, with Malta’s official language being English, adding to the ease of settling in for many expatriates. The program also allows for the exploration of the beautiful island, whether choosing to live in the bustling cities or quieter areas like Gozo or the south of Malta.

What is the Maltese permanent residency program?

This program is a form of residency by investment, requiring applicants, including their adult children and spouses (if in a monogamous marriage), to invest a certain amount in the country. The investment typically involves investing in real estate and government-approved funds.

Is it easy to get permanent residence in Malta?

For those wondering if it’s easy to get permanent residence in Malta, it’s important to understand that while the process is structured, it requires thoroughness, especially during the application stage and application onwards. Successful applicants can reside, settle, and stay indefinitely in Malta, allowing them to enjoy living in one of the safest countries in Europe. Additionally, Malta’s status in the Schengen area means residents can travel freely across Schengen countries.

How much to invest in Malta to get residency?

To qualify, applicants must pay a non-refundable €40,000 administrative fee, lease a property for at least €10,000 annually in South Malta/Gozo or €12,000 elsewhere, or purchase property for a minimum of €300,000 in South Malta/Gozo or €350,000 elsewhere. Additionally, they must contribute €28,000 to the government if buying or €58,000 if renting, donate €2,000 to a registered local NGO, and pay €7,500 for each dependent parent or grandparent.

How much is the permanent residence fee in Malta?

The permanent residence fee in Malta varies, but it is a crucial part of the application process. This fee is in addition to the investment requirement and is payable at different stages of the application. This fee is in addition to the investment requirement and is payable at different stages of the application.

Can family members be included in the MRVP application?

Yes, The Malta Residence and Visa Programme Regulations enable individuals and their families to gain residency in one of the safest countries with low crime rates and access to high-quality education.