With a total population of 500,000 and the continuous attraction of expats Malta has developed a well diversified and vibrant economy.
From a general perspective, there are a number of inherent advantages to be enjoyed by establishing in Malta:
- EU & euro zone membership: Malta is a member of the EU (since 2004) and the euro zone (since 2008), providing access to the European Single Market;
- Location & connectivity: the country enjoys a highly advantageous geostrategic location, with excellent sea and air connectivity to the surrounding region;
- Language: English is one of the island’s national languages, and it is the language used for conducting business. The significant number of expats in Malta has enriched fluency in various languages.
- Human Resources: Malta can offer an educated, productive, flexible and cost-effective workforce;
- Advantageous personal taxation: Income Tax and Social Security contributions being amongst the lowest in Europe. Specific very competitive tax schemes for highly qualified individuals are in place;
- Competitive cost base: Malta offers a competitive cost base especially in comparison to other larger European economies;
- Advantageous Corporate Tax Regime: the corporate tax rate which in Malta is 35%, may effectively be reduced to 5% through a refund of up to 6/7th’s of the amount of tax paid upon distribution of dividends;
- Investment Support Incentives: Malta also offers a number of incentives designed to support investment, including but not limited to tax credits and access to finance.
COMPANY ESTABLISHMENT PROGRAM AND STAGES
By establishing your company in Malta, you benefit from all tax benefits and gain the right of residence. All your transactions take place within a month.
- For the establishment of the first company, the documents of the usufruct holder and its partners must be fully translated into English and notarized. If all the documents are completed completely, the company is established 3 days after the application.
- Determination of company name and activities.
- Identification of company directors and employees and completion of documents.
- Preparation of the company business plan.
- Address determination and notification for the company.
- Application for work permits of managers and employees. Making private health insurance.
- Opening the bank accounts of the companies and completing the necessary documents and forms for this.
- Opening the bank accounts of the employees.
- Notification of Company entries and employees to Malta employment agency and obtaining social insurance numbers
The Malta Permanent Residence Programme (MPRP)
The Residency Malta Agency (RMA) refers to the Malta Permanent Residence Programme (MPRP) as a straightforward residence by investment programme based on investments in property and government contributions. With the promise of a 4 to 6-month processing time from the submission of a complete and correct application, the MPRP offers much value to clients wishing to make Malta their home away from home.
The benefits of the Malta Permanent Residence Programme include:
- The right to settle, stay and reside permanently in Malta;
- Enjoy Visa-free travel across Schengen, 90 out of 180 days;
- Penetrate Malta’s affordable real estate market;
- May include up to 4 generations in an application.
To be eligible for the MPRP, applicants should:
- be third-country nationals, non-EEA and non-Swiss;
- not hail from sanctioned countries, as announced from time to time by the Agency;
- not benefit under other pertinent regulations and schemes;
- be in receipt of stable and regular financial resources, sufficient to maintain themselves and their dependants, without recourse to the social assistance system of Malta;
- show they have capital assets of not less than €500,000, out of which a minimum of €150,000 must be financial assets;
- be fit-and-proper individuals and have a clean criminal record;
- not pose any potential threat to the national security, public policy, public health, or public interest.
In order to apply for the Malta Permanent Residence Programme (MPRP) applicants must:
- Submit an application via Novi Smart Global;
- Administrative Fee:
- Pay a non-refundable administrative fee of €40,000.
- Property Investment:
- Rent a property for a minimum of €10,000 in the South of Malta/Gozo or €12,000 in the rest of Malta; OR
- Purchase a property for a minimum value of €300,000 in the South of Malta/Gozo or €350,000 in the rest of Malta.
The title of purchase or lease over the qualifying property must be held for a minimum period of 5 years.
- Government Contribution
- €28,000 if purchasing a property; OR
- €58,000 if leasing or renting a property;
- Dependant Fees:
- Pay an additional €7,500 for each additional adult dependant (except for the spouse).
- Make a donation of €2,000 to a local philanthropic, cultural, scientific, artistic, sport or animal welfare NGO registered with the Commissioner of Voluntary Organisations;
- Be in possession of a valid travel document.
- Take out a sickness insurance policy of cover all risks across Malta;
- Take out travel insurance when traveling across Schengen.
The Malta Granting of Citizenship for Exceptional Services Regulations
The Granting of Citizenship for Exceptional Services Regulations (S.L. 188.05) allows for the granting of citizenship by a certificate of naturalisation to foreign individuals and their families who contribute to the economic development of Malta.
Every application is subject to a stringent due diligence process, including thorough background checks. Community Malta Agency is the competent Maltese Government Agency responsible to administer these Regulations.
The requisites for filing an application are:
- Provide a proof of residence in Malta for a period of 36 months, provided that this period may by exception be reduced to a minimum of 12 months, subject to an exceptional direct investment (of €600,000 and €750,000 respectively), to be effected prior the issue of the certificate of naturalisation;
- Purchase an immovable residential property in Malta having a minimum value of €700,000 or take on a lease a residential immovable property in Malta for a minimum annual rent of €16,000, which property shall be adequate and suitable for the applicant and his dependants, for a minimum period of five (5) years from the date of issue of the certificate of citizenship;
- Carry out an exceptional direct investment in Malta, in accordance with Regulations S.L. 188.06; being €600,000, or €750,000 where the application is submitted before the completion of 36 months residence. An additional €50,000 shall also be paid for each dependant.
- Donate, prior to the issue of the certificate of naturalisation, a minimum of €10,000 to a registered philanthropic, cultural, sport, scientific, animal welfare or artistic non-governmental organisation or society, or as otherwise approved by the Agency.
The Application Process and Timeline
The application process can be broken down into the following steps:
- Power of Attorney by applicant is granted to Approved Agent to cover entire process.
- Residence application is submitted by Approved Agent for 36 month residence card. Tier 1 Due Diligence conducted by Agent and Agency, whilst 1st Police Clearance is also obtained.
- Eligibility application compiled and submitted to the Agency.
- Due Diligence performed at Tier 2, 3 and 4, and results presented to Minister.
- Eligibility Decision as to whether applicant is eligible to apply for Maltese Citizenship is communicated to Agent.
- Citizenship Application is submitted to the Agency after 12 or 36 months of Residence.
- Updated Due Diligence on the Applicant is submitted to the Agency.
- Citizenship Decision as to whether applicant can be granted Maltese Citizenship is communicated to the Agent.
- Investments must be fulfilled by Applicant, mainly the Investment, Donation and Property Requirements.
- Oath of Allegiance is taken in Malta, and Applicant is granted Maltese Citizenship and is issued with a Certificate of Naturalisation.
- Monitoring is conducted by the Agency for five years.