15 benefits and disadvantages of obtaining Malta citizenship

1. Relocation to Malta or other EU countries. Investors gain the right to live in Malta, a developed country with a high quality of life. They can also move to any EU country without a visa and stay as long as they wish.

Malta citizenship for exceptional services by direct investment also grants foreigners with Maltese passports unrestricted freedom to live in any Schengen Area country, including Norway, Iceland, Switzerland, and Liechtenstein. This includes entry and length of stay without limitations.

While investors are not required to reside permanently in Malta after acquiring citizenship, they retain unrestricted access to the country. This privilege can be invaluable during times of political unrest, economic instability, or personal safety concerns in their home country.

2. Visa-free travel to 169 countries. Malta passport holders can travel visa-free to 169 countries, including the UK, Australia, Japan, Canada, and the USA.

3. Opportunity to change tax residency. Malta offers a favorable tax regime, including no inheritance, estate, or wealth taxes.

Investors may benefit from the non-domicile tax status, which applies to individuals living in Malta without establishing it as their permanent home. Non-domiciled individuals are taxed only on income earned in Malta or foreign income remitted to Malta, while foreign-sourced capital gains remain untaxed, even if transferred to the country.

4. Business and employment opportunities in Europe. Maltese citizens do not require special residency or work permits to find employment or start a business in any EU member state.

Malta’s corporate tax system offers unique benefits to business owners, such as tax refunds for shareholders, which can significantly reduce the effective tax rate. Some companies are allowed to refund up to 100% of the tax paid.

5. Affordable and accessible education. Children of Maltese citizens can study in schools and universities in Malta and across the EU without student visas.

Higher education in Malta is tuition-free for citizens, and students are entitled to a stipend. Though, admission is based on competitive selection to maintain high academic standards. Some EU countries, like Portugal, also waive tuition fees for Maltese citizens.

6. High-quality healthcare. Maltese passport holders have free access to Malta’s healthcare system, ranked 19th globally, surpassing the US, UK, Canada, and Portugal.

Maltese citizens can also receive medical treatment in any EU country, as well as Iceland, Liechtenstein, Norway, Switzerland, and the UK, under the same conditions as local residents through the European Health Insurance Card, EHIC.

7. Safety and security. Malta is among the 15 safest countries globally, free from natural disasters and terrorism threats, with a strong focus on road safety and low crime rates.

Eurostat reports that Malta has fewer police-reported crimes than many European countries, including the UK, Ireland, and Italy.

8. Clean environment. Malta actively participates in the European New Bauhaus initiative, which promotes sustainable and appealing urban development.

For example, the country has invested in wastewater treatment, significantly improving seawater quality. Now, Malta’s beaches are regularly awarded Blue Flags for cleanliness and safety, and Malta’s seashore is considered one of the best in Europe.

9. Dual citizenship is allowed in Malta, enabling individuals to retain their original nationality while enjoying the benefits of EU citizenship.

10. Citizenship for family members. Investors can include close family members in their citizenship application, including:

• spouses or registered partners, including same-sex partners;

• unmarried, principally dependent children up to 29, including those from previous marriages;

• parents and grandparents over 55 who are principally dependent on the investor.

11. Profitable real estate investment. Applicants must meet specific investment requirements to obtain citizenship, including purchasing or renting real estate in Malta. If an investor opts to purchase property, the investment—amounting to €700,000—can be recovered after holding citizenship for five years.

Real estate values in Malta appreciate by 3—5% annually. For example, a property purchased for €700,000 could reach a value of approximately €850,000 after five years. In Q2 2024, property values increased by 3.38%, aligning with an average annual growth rate of 7.1% in 2023.

1. Lengthy process. Investors must wait 1 or 3 years to obtain Malta citizenship. However, they receive a residency card almost immediately—within four weeks. This card provides visa-free travel within the Schengen Area and starts the countdown toward citizenship eligibility.

2. High costs. Obtaining Malta citizenship costs approximately €1 million for a family. The advantage is that the investment requirements are fulfilled only after the citizenship application is approved.

3. Non-refundable investment. A significant portion of the investment required for Malta citizenship is non-refundable. This includes a €760,000 contribution to a state fund and a charitable donation if citizenship is granted after one year of residency.

In exchange, investors and their families gain the benefits of a Malta passport, such as improved quality of life, expanded travel freedom, and opportunities for international entrepreneurship.

4. Stringent Due Diligence process. Applicants and their family members must undergo a rigorous Eligibility Assessment of their personal, financial, and professional backgrounds. This includes verifying the source of funds, criminal records, and global reputational risks.

Any discrepancies, such as unexplained wealth, past visa rejections, or even minor legal issues, might lead to application denial.

Since 2020, the Maltese legislation has allowed wealthy individuals and their family members to apply for citizenship by naturalisation for exceptional services by direct investment.

Before applying, investors must meet the following eligibility criteria:

• be over 18 years old;

• have a legal source of income;

• not be subject to sanctions;

• have no criminal record;

• not have experienced visa denials from countries with visa waiver agreements with Malta.

In addition to the investor, their spouse, children, parents, and grandparents can be included in the citizenship application.

Investors cannot directly obtain a passport by investment. They must first acquire residency and maintain that status for 1 or 3 years before applying for citizenship by naturalisation. The duration is chosen by the investor, with the shorter period requiring the higher investment amount.

Before submitting a citizenship application, investors and their family members must undergo an Eligibility Assessment, which evaluates their professional, personal, and financial backgrounds.

An investor fulfils three investment conditions. It is not allowed to fulfil one or two of them by choice.

Investors must meet three mandatory investment conditions, with the only choice being whether to rent or purchase real estate.

1. Contribution to the National Development and Social Fund. Many investors prefer to expedite the process and apply for citizenship after 12 months of residency. In this case, the required contribution to the fund is €750,000. For those willing to wait three years, the contribution is reduced by €150,000.

Additionally, regardless of the residency duration, investors must contribute an additional €50,000 for each family member included in the application.

2. Charitable donation. Investors are required to make a charitable donation of at least €10,000 to a non-governmental organisation in the fields of charity, culture, sports, or science. This amount remains fixed, regardless of the residency period or the number of family members included in the application.

3. Purchase or rent of real estate. Investors opting to purchase property must ensure a minimum purchase price of €700,000. Those choosing to rent must pay an annual rental amount of at least €16,000.

The real estate investment must be maintained for the first five years of citizenship.

Additional expenses include the cost of the Eligibility Assessment and various government fees.

The main applicant is required to pay €15,000 for the Assessment, while each family member over the age of 12 must pay €10,000. If the main applicant’s funds are sourced from a sponsor, the sponsor must also undergo the Assessment, which costs €15,000.

Learn the benefits and obtaining terms of Maltese citizenship for investors

1. The benefits of Maltese citizenship include the opportunity to live, work, run a business, and study not only in Malta but also in any EU country. Besides, Maltese citizens can enter the country even when borders are closed to tourists.

2. A Malta passport grants visa-free travel to 169 countries.

3. Other advantages include a high level of safety, excellent healthcare, a clean environment, and a favorable tax regime.

4. Malta permits dual citizenship, so renouncing one’s original nationality is not required.

5. Wealthy foreigners can obtain citizenship by naturalisation for exceptional services via direct investment.

6. The ability to include close family members in the application and the potential for profitable real estate investments are additional benefits of Malta citizenship through this route.

7. The disadvantages include a lengthy application process, high costs, non-refundable investments, and a stringent Due Diligence process.