How to renew permanent residence in Malta: procedure specifics for investors

In May 2015, Lizhong applied to Immigrant Invest to obtain permanent residence in Malta. The investor decided to become a Maltese resident in order to travel to the Schengen countries without a visa, send his son to study at a European school, and if desired, move the whole family to the European Union.

When Lizhong applied to Immigrant Invest, Malta had an investment program — Malta Residence and Visa Program. In March 2021, new rules came into force, and the program itself is now called the Malta Permanent Residence Program.

Participation in the investment program for permanent residence in Malta took 10 months from the moment Lizhong applied to Immigrant Invest. The family received permanent residence cards in March 2016.

During the first five years after receiving permanent residence, the investor confirms that he fulfills the program conditions. Namely, what he has:

1. Capital in the amount of €500,000.

2. Accommodation in Malta, either rented or purchased.

3. Medical insurance.

Under the old rules, the investor also certified that he remains the owner of government bonds.

Confirmation of the fulfillment of the conditions is required in order to maintain the status of a Maltese resident. If the investor violates any of the conditions, for example, terminates the rental agreement and does not conclude a new one for the set amount, he will be deprived of permanent residence.

Igor Buglo,

Head of the Maltese office, MBA

The investor can not submit supporting documents independently to the Residency Malta Agency. It had to be done by an agent with a license from the Government of Malta. Immigrant Invest is a licensed agent of the Malta permanent residence program. We do not only help to obtain the status, but also accompany our clients for the first five years. We inform the investor in advance of the fact that it is necessary to confirm the fulfillment of the program conditions. As a rule, in two months. This time is enough to prepare the documents.

Ownership of assets. To confirm the presence of assets of €500,000, Lizhong provided the lawyers annually with:

1. A bank statement.

2. Registration certificates of property rights to real estate objects.

3. Information about the securities held and a statement from the brokerage account.

The investor’s asset list has changed over the course of five years. To participate in the program, Lizhong provided information on ownership of real estate in the amount of €350,000 and securities for €150,000.

To invest in permanent residence, the investor sold one of the properties for €200,000. However, he then earned €230,000 from business and bonds in a year. Therefore, the income covered the costs of participating in the program. The amount of assets held by the investor amounted to more than €500,000.

If an investor has purchased a property to participate in a program, that property is not counted towards proof of assets. Moreover, the cost of Maltese government bonds was not previously taken into account. The presence of assets, housing and government bonds are three different conditions of the program, each of which must be fulfilled separately.

To confirm the address of residence, Lizhong submitted a valid lease agreement.

An apartment in Marsascala, Malta

The apartment is located in a five-storey residential complex. The open plan integrates the living, dining and kitchen areas. The apartment also has two bedrooms, a bathroom and a spacious outdoor terrace overlooking the city. The apartments are rented and furnished. There is air conditioning, TV and Wi-Fi.

• €12,000 — rent for a year

• €150,000 — purchase price

• 66 m² — apartment area

In the second year after receiving permanent residence, Lizhong bought two apartments in Malta at the construction stage - for €230,000 and €250,000. He could not register with any of them, even when the house was completed. Under the terms of the program, for the first five years, the cost of the acquired housing must be at least €270,000.

Vladlena Baranova,

Head of Legal & AML Compliance Department, CAMS, IMCM

According to the new rules, the investor cannot change the rental housing for the purchase, as before: the amount of the government contribution is tied to the chosen option. But you can change the housing itself: rent for rent, purchase for purchase. Cost requirements remain the same.

Medical insurance. Lizhong took out insurance for each family member. The minimum coverage is €30,000 per person, and the insurance covered inpatient and outpatient hospitalizations. The cost of such insurance for a family of five was €2,500.

Immigrant Invest lawyers began preparations for the renewal of permanent residence in June 2021, two months before the cards of Lizhong and his family expired.

The procedure is different from the annual inspection. After five years, the investor no longer needs to confirm ownership of assets for €500,000. Also, the requirements for real estate are canceled; it is still necessary to have an address of registration in Malta, but housing can be anything.

Lizhong decided not to renew the lease of the apartment, but to register in one of the apartments he bought. In the four years that have passed since the purchase, the residential complex has been completed. The investor made repairs in the apartment and decided to rent out the property for travel.

The list of documents required for the renewal of permanent residence includes:

1. Certificate of Maltese residency.

2. Medical insurance for all family members.

3. Sale and purchase agreement for apartments and certificate of registration of ownership.

4. Certificate of registration address in Malta in the new apartment.

The apartment is located on the third floor of a modern residential complex, a five-minute walk from the embankment. The apartment has three bedrooms, one of them with its own bathroom and wardrobe. The living room opens onto an outdoor terrace overlooking the sea.

• €460 000 — purchase price

• 115 m² — apartment area

• from 5 to 7% — yield on rent per year

Every five years, the resident submits fingerprints at the Residency Malta Agency. Prints are needed to make new permanent residence cards: they are biometric in the European Union.

The lawyers pre-booked the date and time for the biometrics for Lizhong’s family. It is compulsory to go to Malta: the Embassies of Malta in other countries or the Maltese visa centers do not take fingerprints for permanent residence cards.

The submission of biometrics in Malta was scheduled for July 28th, 2021. At this time, the family was in China.

Lizhong and his family were able to fly to Malta despite the fact that the country’s border is closed to foreigners. Holders of permanent residence cards have the right to go to Malta at any time.

A lawyer from the Maltese office of Immigrant Invest accompanied Lizhong’s family to take biometrics and, by proxy, applied for the renewal of permanent residence for the whole family.

Igor Buglo,

Head of the Maltese office, MBA

If Lizhong did not have time to go to Malta and turn in biometrics before the expiration of the permanent residence card, he would still have extended the status. Permanent residence cards are reissued on the basis of an unlimited residence certificate.

Lizhong received new permanent residence cards by mail on August 11th, 2021, two weeks after the biometrics were submitted. In the future, he will be able to renew permanent residence on his own: for this he will only need medical insurance and a Maltese registration address.

In February 2021, Lizhong’s son Deming turned 13 years old. He will have to renew his permanent residence card at the age of 14 and 18. The rest of the family, only every five years.

The family spent August in Malta, in Marsascala. Deming studied at a language school. The couple and their parents often went to sea on a yacht, which they rented in a local marina.

Deming’s new school year has begun at a private boys' school in the UK. Parents and grandparents will visit him frequently. As residents of Malta, they will be able to travel to the UK without a visa and spend up to 90 days in the country every six months.

In the fall, Lizhong and Xinyan plan to go hiking along the Blue Trail in Italy. The route passes through the territory of the Cinque Terre National Park. Along the way, the couple plan to visit fishing villages with colorful houses, taste wines at local wineries and sunbathe on the secluded beaches of the Mediterranean Sea.

From November to April, the couple and their parents will live in Malta. They like the island’s warm Mediterranean climate when the temperature in January does not drop below +12°C.

We have talked about all the opportunities that Maltese residents get in the article The advantages of permanent residence in Malta.

Immigrant Invest is a licensed agent for government programs in the European Union and the Caribbean.