Patricia Casaburi Malta Permanent Residency vs Citizenship are two distinct legal statuses that offer different benefits, yet they are often confused.
While both grant the right to live in Malta and, in some cases, travel within the European Union, the main difference lies in the rights and privileges they offer.
Permanent residency allows you to reside in Malta indefinitely, but it does not provide the full range of rights that citizenship does, such as the ability to vote or hold public office.
Citizenship, on the other hand, grants all the rights of a Maltese and EU citizen, including the right to live, work, and travel freely within the EU, and more.
In this article, we’ll clarify the differences between Malta permanent residency and citizenship. We’ll explore the various visa programs that lead to permanent residency in Malta, and how citizenship can be obtained through several routes, such as the Malta Citizenship by Investment Program, among others.
This is what we will cover:
Malta permanent residency vs citizenship: What’s the difference between
Permanent residency and citizenship in Malta are two different statuses that allow individuals to live in the country, but they come with distinct rights and requirements.
Permanent residency permits individuals to reside in Malta indefinitely, but they do not have the same rights as citizens, such as voting or holding public office.
Permanent residents can reside indefinitely in Malta and travel freely within the EU. On the other hand, citizenship in Malta grants full rights, including the ability to vote, hold public office, and live and work freely across the EU.
To acquire Maltese citizenship through naturalization, individuals need to show significant ties to Malta like residing in the country for about 15 years and establishing connections. Note that the law in Malta states an application can be made within 5 years of residing in Malta, however in practice, authorities will only grant citizenship where significant ties can be demonstrated. However, those applying through the Citizenship by Investment program may be eligible for citizenship within 12 to 36 months without a long residency requirement.
How to Get Malta Residency/Permanent Residency
Malta Permanent Residence (PR) allows individuals to live in the country indefinitely and travel within the EU and Schengen Area. Malta offers several pathways to permanent residency, including the Permanent Residence by Investment program or through residing in Malta for more than five years on specific visa routes.
Malta Permanent Residency by Investment
The Malta Permanent Residency by Investment Program (MPRP) is a residence-by-investment program that allows you to obtain permanent residency through a combination of investments, including real estate, a non-refundable government contribution and a philanthropic donation. Additionally, the program covers five generations of family members, including the main applicant, spouse, dependent children, and dependent parents and grandparents and their children’s future children.
To learn more about the Malta Permanent Residence Program
Criteria | Details |
How to Qualify | Applicants must make a three-part investment including real estate, a government contribution, and a charitable donation. |
Investment Options | Real Estate: Either a) Property Rental: €14,000/year for a minimum of 5 years in Malta or Gozo or b) Property Purchase: Minimum €375,000 in Malta or Gozo. Government Contribution: €30,000 - €60,000 depending on the option chosen, and a Charitable Donation: €2,000 to a Maltese NGO. |
Leads to Direct Permanent Residency? | Yes, it provides direct permanent residency once the requirements are met, and application approved. |
Benefits | - No minimum residency requirements. - Right to live and settle in Malta. - Visa-free travel within the Schengen Area for up to 90 days in a 180-day period. - Residency benefits extend to the applicant's spouse, dependent children, dependent parents, and grandparents and children’s future children (up to 5 generations). |
Permanent Residency Timeline | Immediate residency upon approval, with a renewable five-year residence permit. |
Malta Global Residence Program (MGRP)
The Malta Global Residency Program (GRP) is for non-EU/EEA nationals looking for residency with tax benefits. Applicants must prove financial stability and meet property requirements through renting or buying. The program also offers a 15% tax rate on foreign income, with a minimum tax of €15,000 per year. Income earned in Malta follows standard tax rates. The visa lasts one year and can be renewed if requirements are met, for subsequent two-year periods. Family members, like spouses, children, and dependent parents, can join. Work is permissible with additional conditions.
Permanent residency can be obtained after five years of continuous residence.
Criteria | Details |
How to Qualify | Non-EU/EEA nationals wishing to benefit from Malta's favorable tax rates. Applicants must: Prove financial self-sufficiency. - Meet property requirements (purchase or rental). - Pay minimum annual tax of €15,000 |
Investment options | - Owned Property Value: €275,000 (Malta excluding South) €220,000 (Gozo or South Malta) - Rented Property Value €9,600 per annum (Malta excluding South) €8,750 per annum (Gozo or South Malta) |
Leads to Direct Permanent Residency? | No |
Benefits | - Flat tax rate of 15% on foreign income, with a minimum tax of €15,000 annually. - No physical presence requirement, making it ideal for digital nomads or retirees who prefer not to stay in one place. - Family members (spouse, children, and dependent parents) can join. - The residence permit allows the holder and their family to live in Malta. |
Visa Validity | Initial residence permit is valid for one year, with renewals every two years if program conditions are met. |
Permanent Residency Timeline | Applicants typically need to physically reside in Malta for 5 years. The residence permit is renewed annually, and once the requirements are met, permanent residency can be granted after 5 years. |
Malta Retirement Program (MRP)
The Malta Retirement Program (MRP) is designed for non-EU, non-EEA, and non-Swiss retirees who wish to enjoy Malta’s favourable tax benefits. To qualify, applicants must either own or rent qualifying property in Malta, meet specific health insurance requirements covering both Malta and the EU, and demonstrate financial stability.
The program offers a flat 15% tax rate on foreign pension income remitted to Malta, with a minimum annual tax of €7,500, plus an additional €500 per dependant or household staff member. While retirees are encouraged to spend at least 90 days annually in Malta, employment is not permitted. Retirees can take on non-executive roles like advising, serving on boards, or consulting but they can’t manage daily business operations. This lets them stay compliant while sharing their expertise.
Criteria | Details |
How to Qualify | Both EU/EEA/Swiss and Non-EU, non-EEA, and non-Swiss retirees wishing to benefit from Malta’s favourable tax regime. Applicants must: - Own or rent qualifying property in Malta. - Meet health insurance requirements covering both Malta and the EU. - Demonstrate financial stability and self-sufficiency. |
Investment Options | - Owned Property Value: €275,000 (Malta excluding South) €220,000 (Gozo or South Malta) - Rented Property Value €9,600 per annum (Malta excluding South) €8,750 per annum (Gozo or South Malta) |
Financial Requirements | - Flat tax rate of 15% on foreign pension income remitted to Malta, with a minimum annual tax of €7,500. - Proof of sufficient funds to support the applicant and family without relying on local employment. |
Leads to Direct Permanent Residency? | No, does not lead to permanent residency. It grants a special tax status And allows eligible retirees to reside in Malta |
Benefits | - Flat 15% tax rate on foreign pension income. - Encouraged to spend at least 90 days annually in Malta. |
Visa Validity | Residence permit is valid for one year, renewable for 2 year lots thereafter. |
How to get Citizenship in Malta
Malta offers different ways to become a citizen, giving you the right to live, work, and travel freely in the EU and the Schengen Area. As a Maltese citizen, you can also vote and hold public office. You can gain citizenship through naturalization, investment, descent, marriage, adoption, or exceptional services. Each path has its own requirements, which makes it possible for different people to become citizens and enjoy the benefits of being part of Malta and the EU.
Citizenship by Naturalization
To obtain Malta citizenship by naturalization, individuals must reside in Malta for five continuous years. Applicants need to show economic integration, such as stable employment or business activity, and pass background checks. After meeting these requirements, they can apply for citizenship, gaining full EU rights to live, work, and travel within the Union.
Citizenship by Descent
Individuals with Maltese ancestry (parents, grandparents, or great-grandparents) can apply for Malta citizenship by descent. They must provide documents proving their familial link to Malta, and the process can be quicker than other routes depending on the applicant’s circumstances, but it will still take a few years, with no long-term residency or investment required.
Citizenship by Marriage
Foreign spouses of Maltese citizens can apply for citizenship by marriage after five years of residency in Malta. During this period, applicants must live with their spouse and show they are integrated into the country.
Citizenship by Adoption
Children adopted by Maltese citizens automatically become eligible for citizenship. The adoption must be legally recognized, and the child must reside in Malta. Once these conditions are met, the child receives full Maltese citizenship.
Citizenship by Exceptional Services
Citizenship by exception is available for individuals who have made significant contributions to Malta, such as in business, culture, or social service. The individual’s contribution must be recognized by the government, and the process includes thorough vetting. This option is rare but provides a path for those who have notably benefited Malta.
Citizenship by Investment
The Malta Citizenship by Investment Program (CES) allows high-net-worth individuals to gain Maltese citizenship through significant investment. It offers a fast-track route to citizenship, granting full Maltese and EU rights for the investor and their family.
A key feature of the program is a thorough due diligence process with eight critical steps to ensure that only eligible applicants are approved. This process helps maintain high security and integrity standards, ensuring the safety of Malta and its community.
Here is an overview of the Malta Citizenship by Naturalization for Exceptional Services (CES)
Criteria | Details |
Eligibility Requirements | Applicants must be at least 18 years old and meet residency and financial requirements. |
Residency | No physical residency requirement, however applicants must complete 12 months or 36 months residency (holding residence card) before applying for citizenship. |
Government Contribution | €600,000 (36 months residency route) or €750,000 (12-months residency route). |
Real Estate Investment | Purchase property for €700,000 minimum or rent for €16,000/year for 5 years. |
Donation | €10,000 donation to a Maltese charity. |
Due Diligence | Thorough background checks to ensure no criminal history and legitimate wealth accumulation. |
Health Insurance | Must have valid health insurance covering Malta. |
Benefits | - Malta passport - Visa-free travel within the Schengen Area. - Right to live, work, and settle in Malta and all other EU countries. - Family members (spouse, children, and parents) can join. - Access to a high-quality healthcare and education system. |
Citizenship Timeline | 15-18 months to complete the process from initial application to receiving citizenship. |
To learn more about the Malta Citizenship by Investment
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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 Permanent Residency vs Citizenship
What is Malta permanent residency?
Malta Permanent Residency allows non-EU nationals to live in Malta indefinitely. It offers benefits such as access to healthcare, education, and the ability to travel within the Schengen Area. It requires applicants to meet specific financial and property investment criteria.
How can I obtain Malta permanent residency?
You can obtain Malta Permanent Residency through the Malta Permanent Residency Program (MPRP) by making a government contribution, purchasing or renting property, donating to a Maltese NGO, and showing proof of sufficient assets. This grants indefinite residency in Malta and Schengen Area travel privileges.
What is Malta Citizenship by Investment?
Malta Citizenship by Investment, also known as the Citizenship by Naturalization for Exceptional Services by Direct Investment (CES) program, allows high-net-worth individuals to obtain Maltese citizenship in exchange for significant financial contributions, such as property investment, a government contribution, and a donation to charity.
How long does it take to get Maltese citizenship by investment?
Applicants can typically obtain Maltese citizenship within 15-36 months under the Citizenship by Investment Program, provided they meet all financial and residency requirements and pass the due diligence checks.
Can I apply for Malta citizenship by descent?
Yes, individuals with Maltese ancestry, such as parents or grandparents who were Maltese citizens, can apply for citizenship by descent. The process is generally quicker than other routes and doesn’t require long-term residency.
What are the benefits of Maltese citizenship?
Maltese citizenship grants full EU rights, including the freedom to live, work, and travel within the European Union and the Schengen Area. It also offers the right to vote in national elections and access to social benefits.
Can I hold dual citizenship with Malta?
Yes, Malta allows dual citizenship, meaning you can maintain your original nationality while becoming a Maltese citizen, provided it is not prohibited by your home country’s laws.
Do I need to live in Malta to keep my citizenship?
Once you acquire Maltese citizenship, you are not required to live in Malta permanently. However, maintaining your residency status through the required periods of residence is necessary for certain pathways to citizenship.
