Malta Permanent Residence Program

March 13 17:11 2021 by The Editor Print This Article

Since 2021, the Malta Permanent Residence Programme or MPRP builds on the success of Malta’s reputation and the former MRVP Programme, in attracting expatriates seeking an alternative residence base in a warm Mediterranean Island in the European Union. Malta is an island of stability with a proven track record of economic success. The island is ideally located in the middle of the Mediterranean Sea and acts as a perfect bridge between Europe and other continents. Malta is also a member of the European Union, the Schengen Area and the Commonwealth. 

The MPRP is a Malta permanent residency programme which allows applicants, their children, parents and grandparents the opportunity to reside or settle indefinitely in Malta. Once an application is approved, applicants may opt to work or set up a business in Malta. 

Basis for the Malta Permanent Residence Programme

The aim of the Malta Permanent Residence Programme is to attract non-EU individuals of impeccable standing and their family members to apply for Maltese residence. The residence status obtained under the MPRP allows its holders the right to reside and settle in Malta as well as to travel within the Schengen Area without a visa. Holders of a Maltese residence card may also reside in other countries of the Schengen Area for 3 months in every 6-month period. 

Eligibility for the Malta Permanent Residence Programme

Applications under the Malta Permanent Residence Programme are open to non-EU, non-EEA and non-Swiss nationals.  An application can include the main applicant, the spouse, financially dependent parents, and grandparents as well as children of the main applicant and the spouse. In order for children to be included in the same application, they must be un-married and economically dependent on the main applicant. 

The Main Applicant must be in receipt of stable resources to maintain himself and his family in Malta and must show that he has capital of at least €350,000 and liquid assets of at least €150,000. 

Investment Requirements under the Malta Permanent Residence Programme

Applicants under the MPRP are to fulfil all of the following three requirements:

  1. Pay a Government contribution of €68,000 if opting to purchasing a property in Malta or  €98,000 if opting for the rental option, and
  2. Make a Philanthropic contribution of €2,000 to an approved philanthropic organisation, and
  3. Rent or Purchase Property in Malta (to be kept for 5 years)

The Minimum value for the Rental Option: min €12,000 annually if situated in North of Malta, or €10,000 annually if situated in Gozo or in the South of Malta. 

The Minimum value for the Purchase Option: min€350,000 if situated in the North Malta, or €300,000 if situated in Gozo or in the South of Malta.

Taxation of Maltese Residents under the MPRP

The basis of taxation in Malta is based on domicile and residence. The latter, for tax purposes is established either by residing in Malta for 183 days or by demonstrating an intention to reside in Malta indefinitely. Maltese residents under the Malta Permanent Residence Programme are not subject to tax in Malta on foreign sourced income not remitted to Malta, nor are they subject to tax on any foreign-sourced capital gains whether remitted to Malta or not. Hence, non-domiciled residents of Malta are taxable on a remittance basis only on foreign source income (not foreign-source capital) remitted to Malta and only to the extent remitted, subject however to minimum tax of €5,000. The minimum tax applies to individuals and couples who earn at least €35,000 of annual income arising outside Malta.

Our Tax Advisors will be able to guide you in more detail in relation to any tax implications when acquiring residency under the MPRP. 

Malta Permanent Residence Programme Benefits

The benefits of acquiring Malte residency under the MPRP include: 

  • Permanent Residence immediately
  • The right to reside indefinitely in Malta
  • The right to visit the Schengen Area without a visa, a reside therein for 3 months in every 6 months
  • The Qualifying Property is only required for 5 years
  • No minimum presence required
  • Application is processed within 4-6 months
  • Investment is to be made only upon approval
  • Ease of investment in excellent real estate market opportunities

Malta Permanent Residence Programme Applications

Applications are to be submitted only via Licensed Agents authorised by the Maltese Government Agency (Malta Permanent Residence Agency).  Click through for a list of Malta immigration lawyers

 

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