Malta Residence and Visa Programme Regulations

Published 18 Mar 2016

By virtue of Legal Notice 288 of 2015, the Malta Residence and Visa Programme (‘’MRVP’’) has been launched for individuals who are non-EU/EEA/Swiss Nationals. The MRVP provides international investors and their dependants with the right to reside, settle or stay indefinitely in Malta. Successful applicants and their dependants shall be awarded a certificate, which certificate shall be monitored annually for the first five years and every five years thereafter.

 

What are the minimum eligibility criteria and how can one qualify?

Qualification and general requirements for a person to be issued a certificate under the MRVP shall be that such person:

  1. Is at least eighteen years (18) of age.
  2. Is a third country national.
  3. Must not be benefitting under the Residents Scheme. Regulations, the High Net Worth Individuals-EU/EEA/Swiss National Rules, the Malta Retirement Programme Rules, the Residence Programme Rules, the Qualifying Employment in Innovation and Creativity Rules or the Highly Qualified Persons Rules.
  4. Must be in possession of a valid travel document.
  5. Must be in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system of Malta.
  6. Must be in possession of sickness insurance for himself and his dependants in respect of all risks to the European Union.
  7. Must have an annual income of not less than €100,000 arising outside Malta or in possession of capital of not less than €500,000.
  8. Must acquire and hold (for a minimum period of five (5) years from the date of issuing of the certificate) immovable residential property situated in Malta purchased for not less than three hundred and twenty thousand euros (€320,000) or two hundred and seventy thousand euros (€270,000) for property situated in the South of Malta/Gozo. Alternatively, immovable residential property may be leased for a minimum annual rent of twelve thousand euros (€12,000) per annum in the case of property located in Malta or ten thousand euros (€10,000) per annum for property situated in the South of Malta/Gozo.
  9. Must hold (for a minimum period of five (5) years from the date of the issuance of the certificate) a qualifying investment, that is Government bonds or other approved investments, having an initial value of two hundred and fifty thousand euros (€250,000).
  10. Must make a one-time financial contribution of thirty thousand euros (€30,000) to the Government of Malta. Please note that a non-refundable application fee payable to the competent authority of five thousand five hundred euros (€5,500).

Please note that beneficiaries of the Global Residence Programme shall be allowed to apply for the issuance of a certificate in terms of these regulations subject to satisfying the additional eligibility criteria of these regulations.

 

Eligibility of the Dependants

Eligible dependants of the main applicant are:

  1. The spouse of the main applicant.
  2. A child, including an adopted child of the main applicant or of his spouse who is less than eighteen (18) years of age.
  3. A child of the main applicant or of his spouse who is between the age of eighteen (18) and (26) years, who is not married and who proves that he/she is not economically active and a dependant of the said main applicant.
  4. A parent or grandparent of the main applicant or of his spouse who is not economically active and a dependant of the said main applicant.
  5. A child of the main applicant or spouse who is over eighteen years (18) years of age and who is physically or mentally disabled and is living with and fully supported by the main applicant.

Application Process

Every application is to be submitted through an approved agent or accredited person to the competent authority, being Identity Malta. A non-refundable administrative fee of five thousand five hundred euros (€5,500) shall be payable. This amount shall be deducted from the financial contribution which would have to be made in the event that the application is successful and approved. 

 

Taxation in Malta of the ‘’new’’ residents

The basis for taxation under the Maltese tax system is based on domicile and residence. Maltese tax residents who are not domiciled in Malta are taxable on a remittance basis and only on foreign sourced income remitted to Malta. Income and capital gains arising in Malta are always subject to tax in Malta at the applicable personal income tax rates. Capital gains arising outside of Malta will fall outside the scope of Maltese tax law irrespective of whether these are remitted to Malta or not. Capital and savings remitted to Malta also fall outside the scope of Malta tax.

This publication is intended to provide an overview of the subject matter (errors and omissions excepted) and is not comprehensive in nature or to be construed as legal, tax or investment advice. We recommend that clients seek professional advice on any particular matter. 

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