Malta permanent residence: benefits and disadvantages for investors

Malta Permanent Residence Program offers to obtain the status of a Malta permanent resident by investment. An applicant fulfils mandatory investment conditions:

Malta Permanent Residence Program

• makes a charitable donation;

• pays administrative and state fees, buys or rents real estate;

• submits proof of capital of at least €500,000, including liquid financial assets of €150,000.

Immigrant Invest is a licenced agent of the Maltese program and is authorised to help investors obtain the status.

In many ways, the Malta permanent residence program is more attractive than other non‑investment ways to get residency in the country. But there are also some limitations. We suggest that you weigh all the benefits and requirements before opting for Malta’s permanent residence by investment.

The Malta permanent residence program offers the fastest way to get permanent residency in the country. For comparison: permanent residence by naturalisation is expected for five to six years. Most government programs for investors of the EU countries grant only temporary residence permits, renewed every year or two.

Due Diligence for each family member. All program participants undergo a Due Diligence check.

A Due Diligence fee of €10,000 is payable when applying. If the application is approved, the fee is counted in the amount of subsequent mandatory payments for the program.

The rental cost requirement in the south of Malta and on the island of Gozo is €10,000 per annum, and in other regions, €12,000. For five years of permanent residence, the non-refundable rental costs of housing may amount to €50,000+.

Non‑refundable payments. For any program of residence or citizenship, there are non‑refundable payments: these are duties and mandatory contributions to government funds.

Three non-refundable payments are made by the investor under the Maltese permanent residence program:

• administration fee — €40,000;

• contribution to the government fund — €28,000 when buying a property or €58,000 when renting;

• contribution to a non-governmental organisation — €2,000.

The total non-refundable expenses for the real estate purchase are €70,000. When renting, non-refundable costs include the cost of the lease itself for five years — €150,000 or €160,000.

Children, parents, and grandparents must be principally dependent on the investor. They do not have to work and receive any income other than financial support from the primary applicant. Principal dependence has to be documented.

A registration address is needed at all times. To maintain the status of a permanent resident, you need a registered address. Housing can be owned or rented — it doesn’t matter.

The investor can change the registration address. For example, an investor bought a property worth €350,000 and sold it five years later. Then they bought or rented another housing, but without regard to the financial conditions of the program. The investor submits a sale agreement and a new purchase or lease agreement to the program department.

Who is eligible to apply for a residence permit in Malta:

• age over 18 years old;

• no criminal record or criminal prosecution;

• no visa denials to countries that have a visa waiver regime with Malta;

• ability to confirm the legality of the origin of the invested funds;

• owning a capital of at least €500,000, of which at least €150,000 must be financial assets.

Investors can choose between two investment opportunities — renting or buying real estate. The cost of purchase or rent stays the same no matter how many family members participate.

The contribution fee is increased by an additional €7,500 to include a parent or grandparent in the application.

There are additional cost items such as translation and apostille of documents and notary services of at least €4,000, as well as medical insurance of at least €400 per person. The law does not regulate these expenses, and investors choose insurance companies, notarial offices and translation agencies by themselves.

The Malta permanent residence program requires the following documents:

1. Investor’s passport.

2. Passports of all family members.

3. Cover letter.

4. Proof of having undergone the preliminary Due Diligence.

5. Proof you have the necessary funds for the investment.

6. Proof that you have obtained your funds legally.

7. Bank statements from your country of origin.

8. Marriage certificate.

9. Birth certificates.

10. Divorce certificate.

11. Custody documents.

12. Documents proving principal dependency for adult children, parents, and grandparents.

13. Biometric data for yourself and all applicants over the age of 12.

14. Police certificates, proving you do not have a criminal background.

15. Medical reports for yourself and your family. Medical reports are required to prove that the applicants do not have any contagious disease that could endanger public health in Malta.

The exact documents list will change depending on investment and family background.

Under the terms of the program, the investor rents or buys residential property in Malta. If the investor chooses to buy, then the property’s value must be at least €350,000 for the north and the centre of Malta and €300,000 for other country regions.

Real estate in the north and the centre of Malta is more expensive than in other regions because they have a well-developed infrastructure. If an investor buys a property there, the real estate costs amount to 83% of the total costs of getting a residence permit. After five years of maintaining the status, the property can be sold. Therefore, the investor will return 83% of the program costs.

How to buy real estate in Malta

By purchasing a property, it is possible to cover all the program’s costs. The cost of housing in Malta is growing by about 4% per year. If you buy new apartments in a modern business-class residential complex, then in five years, their cost can rise by 20%. The investor will return not only investments in real estate but also cover some costs of obtaining the status.

The main advantage of renting over buying is speed. Registration of the sale and purchase lasts a couple of months. Finding suitable accommodation and concluding a lease agreement in two weeks is possible.