The Malta Permanent Residence Programme (the MPRP), so-called Malta Golden Visa Programme, was introduced by the Maltese government through Legal Notice 121 of 2021, which came into force on the 29th of March becoming a significant re-edition of previous alternatives for third-country. High-Net-Worth Individuals and their families seeking to reside in the European Union’s safest country.
Under the previous programme’s framework, 2,542 applications were received from investors from all around the globe, 70% of which were approved. This led to a 49 million euros increase in the national budget.
This article provides a brief overview of the eligibility, applicable conditions, and requirements of the recently launched residence programme.
How can one be granted with permanent residency rights on the basis of investment?
For a certificate of permanent residency to be issued under the MPRP regulations, the applicant must satisfy the following conditions:
1.To hold for at least 5 years from the issuance of the certificate, a qualifying property which can be purchased or rented:
- if purchased, the minimum property value must be of €350,000 for a property situated in Malta or €300,000 for a property situated in Gozo or the South of Malta.
- if rented, the minimum lease value must be for a minimum of €12,000 per annum for a property situated in Malta or €10,000 per annum for a property situated in Gozo or the South of Malta.
Provided that after the lapse of five (5) years from the issuance of the certificate, the applicant must hold residential property in Malta or Gozo in ownership or by title of lease or emphyteusis.
2. To make a contribution as investment into the Maltese economy in the amount of:
- €28,000 if the property is purchased, plus €7,500 for every parent or grandparent of the main applicant or of the spouse.
- €58,000 if the property is rented, plus €7,500 for every parent or grandparent of the main applicant or of the spouse.
3. To make a donation of €2,000 to a local non-governmental organisation or society registered with the Commissioner for Voluntary Organisations, or as otherwise approved by the Agency.
4. To pay a non-refundable administration fee of €40,000, €10,000 out of which are to be paid within one month from submission of the application and the remaining balance within two months from the issuance of the Letter of Approval in Principle.
5. To prove the possession of assets in the value of not less than €500,000, out of which a minimum of €150,000 must be in the form of financial assets.
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Aside from the investment requirements, what other requirements should be met?
The approved agent will carry out due diligence on each application including a background verification of the applicant. This is vital for the purpose of maintaining the programme’s integrity and reputation.
The applicant must provide evidence of his source of funds and wealth as well as proof that he is in receipt of stable and regular resources which are sufficient to maintain himself and his dependants. This latter requirement provides assurance that the applicant will not need recourse to the social assistance system in Malta. Additionally, applicants must have a health insurance policy in respect of all risks which are normally covered for Maltese nationals.
Who can apply?
The MPRP is targeted exclusively at third-country nationals (“TCN”). Under the relevant regulations a TCN is defined as a person who is not a citizen of the European Union nor a citizen of the EEA or Switzerland.
The new law also defines family members as “dependants.” This group includes:
- The applicant’s spouse in a monogamous marriage or in another relationship having the same or a similar status to marriage.
- A child, including an adopted child of the applicant or of his spouse, who at the time of application is under 18 years of age.
- A child, including an adopted child of the applicant or of his spouse, who at the time of application is over 18, not married, principally dependent on the applicant.
- A parent or grandparent of the applicant or his spouse, who at the time of application is principally dependant on the applicant.
What are the main benefits of the MPRP?
- Indefinite residence in Malta.
- Indefinite visa-free travel within the Schengen Area.
- Access to reputable healthcare and an excellent education system.
- Investment in a sound real estate market.
- Mirrored benefits for family members up to four generations.
The Malta Permanent Residence Programme seems perfectly corresponding to the growing demand from the world’s wealthy social classes to relocate their investments and gain easy travel-access. Economically vibrant Malta as the safest country in Europe and second safest globally with over 300 days of sun every year continues to attract expatriates in terms of lifestyle, culture, and ease of access into other countries.
Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partner and cannot constitute any form of legal advice.
