Malta Global Residence Programme | A Complete Guide
Overview:
The Malta Global Residence Programme (MGRP), launched in 2013, is a government-backed residency by investment program designed to attract high-net-worth individuals from non-EU countries.
In essence, this program grants you Maltese residency in exchange for purchasing or renting property in Malta, paying a one-time administrative fee, and becoming a tax resident, which requires an annual tax payment of at least €15,000.
Eligibility Criteria:
To apply for the Malta Global Residence Programme (MGRP), applicants must meet the following basic conditions:
1. Non-EU Citizen: The applicant must be a non-EU citizen, at least 18 years old, in good health, and have a clean criminal record.
2. Purchase or Rent Property in Malta:
- Rental Option: You must rent a property with an annual rent of at least €9,600 (or at least €8,750 if the property is in Gozo or the southern region of Malta) and pay a one-time administrative fee of €6,000.
- Purchase Option: You must purchase property in Malta with a minimum value of €275,000 and pay an administrative fee of at least €6,000 (or a minimum property value of €220,000 and an administrative fee of €5,500 if the property is in Gozo or the southern region of Malta).
3. Tax Residency: Participants in the MGRP benefit from a five-year tax reduction but must become Maltese tax residents and pay a minimum annual tax of €15,000.
4. Health Insurance: You are required to purchase health insurance with a minimum coverage of €400 per person for both the main applicant and any dependents.
5. Bank Deposit: When applying for the MGRP, you need to provide proof of bank deposits, showing that the main applicant and each dependent have at least €30,000 in savings.
Program Advantages:
Compared to similar programs in other countries, the Malta Global Residence Programme (MGRP) offers the following advantages:
1. Schengen Visa Equivalent: The Malta residence permit functions as a Schengen visa, allowing holders to stay in other Schengen countries for up to 90 days within every 180-day period.
2. No Minimum Stay Requirement: The MGRP does not impose any minimum stay requirement. You can hold the visa and spend extended periods outside of Malta.
However, since one of the prerequisites for participating in the MGRP is becoming a Maltese tax resident, you cannot spend more than 183 days in any other country within a calendar year, nor can you become a tax resident of another country.
3. Tax Benefits: MGRP participants automatically become Maltese tax residents and enjoy special tax benefits:
- Income earned within Malta is taxed at 35%.
- Foreign income remitted to Malta is taxed at 15%.
- Foreign income not remitted to Malta is not taxed.
4. Access to Top-tier Education and Healthcare: Malta offers high-quality education and healthcare systems.
5. Business Opportunities: MGRP participants can apply for a special work visa, allowing them to start businesses and operate companies within Malta.
Application Process:
The application process for the Malta Global Residence Programme (MGRP) cannot be completed as a DIY project; it must be handled entirely by a licensed agency. The process can be broken down into four main steps:
1. Preparation of Documents and Submission of Application: You can submit the application yourself, or your lawyer can submit it on your behalf to the Malta Inland Revenue Department (IRD). At this stage, you are required to pay a one-time administrative fee of €6,000.
Required documents for this program include:
- Personal Identification Documents: These include valid passports for all main and dependent applicants, passport-sized photos, and relationship proof documents such as birth certificates and marriage certificates.
- Application Form: You can fill out the application form online.
- Proof of Health Insurance: You must purchase adequate health insurance for each main and dependent applicant on an annual basis.
- Certificate of No Criminal Record: All adult main and dependent applicants must provide a certificate of no criminal record issued by the law enforcement agency in their country of residence.
All documents originating outside Malta must be notarized, and non-English documents must be translated into English. Typically, the agency will assist you in gathering, notarizing, and submitting all required documents.
2. Background Check: The IRD will review all submitted materials and conduct a background check, which typically takes 3 to 4 months.
3. Interview: After the background check is completed, you will need to travel to Malta for an in-person interview at the IRD office. The interview is generally informal.If the interview is successful, the IRD will issue a “Letter of In Principle Approval.”
At this point, you will need to fulfill several requirements, including paying the minimum tax, purchasing or renting a property, securing health insurance, and providing proof of bank deposits.
4. Applying for the Residence Card: Once all financial requirements are met, you will need to provide biometric data (fingerprints) and apply for the residence card in person at the Identity Malta Agency (IMA).
The processing time for the residence card at IMA is approximately 5 to 6 weeks. The residence card will then be mailed to your address in Malta.
Minimum Residence Requirement:
The MGRP does not impose any minimum stay requirements for participants. However, legally, since you must be a Maltese tax resident, you cannot spend more than 183 days in any other location outside of Malta within a single calendar year.
Dependents:
Under the Malta Global Residence Programme (MGRP), the main applicant’s spouse, children under 18, financially dependent children aged 18 to 25, financially dependent siblings, parents, and grandparents are all eligible to obtain a residence permit as dependents.
Visa Validity:
The initial validity of the Malta MGRP residence card is one year, and it can be renewed every two years thereafter.
MGRP holders are required to submit a tax status declaration to the Maltese tax office by April 30 each year, proving that they have paid the required taxes.
Foreigners who have legally resided in Malta for five years and have employment are eligible to apply for permanent residency.
Foreigners who have legally resided in Malta for seven years (six years for permanent residents, with four of those years as a permanent resident), with a total absence from the country not exceeding 10 months within those seven years, and no single absence longer than six months, must have continuously resided in Malta for the 12 months prior to the application, and pass a language test in English or Maltese, are eligible to apply for Maltese citizenship.
Frequently Asked Questions:
What are the differences between the Malta Global Residence Programme (MGRP) and the Malta Permanent Residence Programme (MPRP)?
While both programs share similarities in requiring applicants to purchase or rent property and pay a government fee, there are several key differences between them:
1. Government Fees and Tax Residency: The government fee for the MGRP is significantly lower than that for the MPRP. However, under the MGRP, you must become a Maltese tax resident and pay an annual tax of €15,000.
- In simple terms, the minimum theoretical investment for the MGRP is €34,950 for the rental option and €271,000 for the property purchase option.
- For the MPRP, the minimum theoretical investment is €160,000 for the rental option and €420,000 for the property purchase option.
2. Type of Visa Issued: The MGRP issues a one-year renewable visa, while the MPRP issues a permanent residence visa.
3. Tax Benefits: MGRP participants can benefit from certain tax relief measures in Malta, whereas MPRP participants must adhere to Maltese tax policies without any tax exemptions.
Can I recover my investment under the MGRP?
If you participate in the MGRP through the property purchase option and later decide to relinquish your Maltese residency or have already obtained permanent residency or citizenship in Malta, you have the option to sell the property and recover part of your investment.
Official Links:
Malta Global Residence Programme: https://cfr.gov.mt/en/inlandrevenue/itu/Pages/Global-Residence-Programme-Rules.aspx