Malta is known as one of the most beautiful tourist destinations in the world. What you might not know is that there are lots of business, immigration, residency, and citizenship services and options that heavily favour people who are interested in investing in the island or moving there.
Why Malta is So Attractive For Investors
Several factors work in investors’ favour, the first being a strong financial sector. Malta’s financial services sector strongly favours innovation and actively facilitates starting businesses in Malta and investing in businesses there and adds value to doing so. Additionally, a strong and motivated workforce combined with low labour costs entices investors further.
The tax framework is also very favourable to investors and shareholders. Businesses pay 35% corporation tax without double taxation, as Malta has agreements with governments worldwide that help avoid this.
Shareholders are subject to an income tax refund that depends on the amount of tax the business pays; the profits taxed at the company level are not taxed at the shareholder level. The Maltese government also doesn’t withhold taxes on dividends paid to company shareholders.
Another factor working in investors’ favour is business infrastructure. Investors can find property for their businesses, themselves, and their dependents, as Malta has a robust construction and real estate industry. The IT infrastructure is also robust enough to support and facilitate global business.
Lastly, businesses can outsource different services either before they set up their own departments or for as long as they wish. These include payroll, auditing, recruitment, regulatory compliance and consultation, and employment law compliance.
Immigration, Residency, and Citizenship Programs and Options
To leverage all the benefits Malta has to offer businesses, the Maltese government has put in place several options for foreigners who want to gain Maltese residency or citizenship.
Malta Permanent Residency Program
The most popular option is the Malta Permanent Residency Program, which allows foreigners to obtain permanent residency in Malta. To qualify, one has to meet specific requirements. These include buying or renting qualifying property, making a government contribution, contributing to an NGO, and paying an administrative fee.
The value of the property to invest in to qualify for this program depends on where it is located. Investors need to purchase a property valued that is valued at a minimum of €300,000 if it is located in the South of Malta or Gozo, or €350,000 if it is located in Malta. For rented property, it must have a lease value of at least €10,000 if it is located in the South of Malta or Gozo and at least €12,000 if located in Malta.
The amount of government contribution depends on whether the investor buys or rents the property and how many members of their family they bring over. The donation for the NGO is €2,000, and the administrative fee is €40,000, €10,000 of which will need to be paid upon filing with €30,000 paid if the approval goes through.
Malta Startup Residence Programme
The Malta Startup Residence Programme is meant for non-EU nationals who want to invest in the country. It gives them a residency permit that lasts for three years. However, it can be extended by five more years for the founders and co-founders and three years for the core employees as long as the business is still ongoing at the time of renewal and the individuals meet specific requirements. The main thing to know here is that investors need to move into the country, run their businesses there, and pay their taxes in Malta to qualify.
The Malta Startup Residence Programme also lets founders, co-founders, and core employees immigrate their immediate family to the island.
This program has two main aims. First, the Maltese government wants to ensure a robust startup and business environment in the country. Because of this, lucrative measures are provided to businesses and investors by Malta Enterprise, which oversees the program.
The second aim is to ensure Malta is attractive enough to attract and retain international talent. Immigration has been shown to help other countries become giants, and Malta hopes to replicate these results.
To qualify for this program, non-EU nationals must invest at least €25,000 in a tangible investment or share capital for a startup. Founders and co-founders will also have to present a business plan that has to be approved by the Malta Enterprise.
Everyone who qualifies for the program will not need a visa as long as they have a Letter of Approval in Principle.
Malta Citizenship By Naturalisation
Another immigration service offered in Malta that can benefit investors and non-investors alike is citizenship by naturalisation. Obtaining citizenship in this way requires that all applicants meet stringent requirements.
First, they have to be over 18, have no criminal prosecutions or convictions, and intend to remain so as a Maltese citizen, rent or buy property, and understand English, Maltese, or both. Lastly, they must have lived in Malta for four out of six years before residing in Malta continuously for a year before applying.
Parents who have acquired Maltese citizenship by naturalisation can apply for citizenship on behalf of children below 18, and their newborns also get citizenship by default.
Malta Citizenship By Naturalisation For Exceptional Services
Another way to make the most of Maltese immigration services is to apply for Malta citizenship by naturalisation for exceptional services. Before applying, you have to meet specific investment requirements. These include investing in real estate where you can buy or rent property, contribute to the National Development and Social Fund, and donate to an NGO.
You also have to obtain a residency permit, after which you must pass an eligibility test and then apply for citizenship.
Malta offers EU and non-EU residents a lot of business and immigration services to entice them to invest in the country. There are various citizenship and residency programs available to non-citizens, and you can go through them to find one that fits your needs and those of your family best. You also need to consider whether you will move to Malta or start a business as a foreigner, as there are upsides and downsides to choosing either option.