Malta

Malta Exceptional Investor Naturalisation Program

The Maltese Citizenship Act allows citizenship under Chapter 188 of the Laws of Malta. The program has undergone several changes from its original form as the general citizenship by the investment industry matured and improvements were made.

The European Council encouraged additional due diligence requirements as the council requires transparency of the due diligence of the applicants and obtaining citizenship.

The new program is named Malta�s Exceptional Investor Naturalisation (MEIN) by direct investment, governed by Regulations (SL 188.05) under the Maltese Citizenship Act 188, LN437 of 2020. Under the new Laws, applicants can apply for citizenship after holding residence for twelve or thirty-six months. I will describe the timeline in detail later in this article.

Investment Requirements for the Malta Exceptional Investor Naturalisation Program

As the cr�me de la cr�me of citizenship by investment programs, the costs are higher than other investment programs worldwide. The limited number of primary applicants ensures no oversupply of investor slots. High-Net-Worth Individuals looking for a European passport and all the benefits for themselves and their families need only consider Malta.

National Development and Social Fund (NDSF)

An investor must make a non-refundable contribution to Malta�s National Development and Social Fund (NDSF). The fund finances projects linked to public health, education, job creation, social improvement, and innovation, effectively placing it on a similar status as the country�s central bank.

The contribution requirements are as follows:

• A non-refundable donation of �600,000 to be naturalized after thirty-six months; or
• A non-refundable donation of �750,000, which allows the applicant naturalization after twelve months of holding residence; and
• Dependents who meet the qualification requirements cost an additional �50,000 contribution to the NDSF per applicant.

Real Estate Investment or Long Term Lease

The second financial component requires the applicant to have a place of residence. There needs to be a commitment to purchase a property or sign a long-term lease for residence in Malta for five years. To satisfy the accommodation requirement, the applicant needs to either:

• Purchase a property for �700,000; or
• Obtain a long-term lease for a minimum of �16,000 per annum rental.

The caveat to the accommodation requirement is that the property cannot be leased or subleased. The Community Malta Agency (CMA) will conduct spot checks and follow-ups during the five-year requirement.

Malta places a Stamp Duty on purchasing existing real estate property depending on which island you invest on. There is a 5% charge on property in Malta and 2% on the smaller island of Gozo.

Charity Donation

The final investment requirement is that the applicant makes a charitable contribution of at least �10,000. The applicant may choose from numerous qualified philanthropic, artistic, sports, scientific, or cultural non-governmental organizations (NGOs) and societies registered in Malta.

Due Diligence, Processing and Residency Costs

There are additional government fees and costs associated with the Malta program.

• The due diligence fee is �15,000 for the primary applicant and �10,000 for dependents;
• Processing fee of �1,000 for each applicant; and
• The residence permit will cost �5,000 for the principal applicant and �1,000 for each dependent.

The applicants will be residents for twelve or thirty-six months, depending on their investment route. Because of the high initial contribution, most investors opt for the fast-track twelve-month residence to citizenship path.

Eligibility and Dependents

The primary applicant is eligible to apply for MEIN if

• They are at least 18 years of age;
• They have a transparent criminal background and do not face a criminal investigation or international sanctions. This also applies to all family members included in your application; and
• The primary agrees to support dependent family members included in the application.

Dependents who can join the primary applicant include:

• A spouse or de facto partner;
• Children (including the children of a spouse) who are less than eighteen;
• Any children who are over the age of eighteen but not yet twenty-nine, unmarried, and financially dependent on the primary;
• Any children over the age of eighteen who are wholly dependent on the investor or spouse due to any physical or mental disabilities; and
• The dependent parents of either primary or spouse, who are over fifty-five and financially reliant on either.

Step-by-Step Process

The overall Malta citizenship by investment timeline usually takes about fourteen to eighteen months. The initial residence can occur quickly if documents are in order. The Maltese Government only allows a selected number of agencies that have been approved to take applicants through the entire process. This reduces the number of contacts for the government. However, there is strong case management support from the advisory firms working with the approved agents.

The initial engagement phase, with consultations and preparation work, takes about two months.

• Conducts the initial consultation and signs an engagement letter with our clients;
• The team starts to compile the supporting documentation and create the application file;
• Arrange for the documents to be signed by a Maltese Embassy and apply for a residence permit and ID; and
• Complete biometrics and obtain a Maltese Residency ID Card.

It is important to note that the �clock� for naturalization begins when applicants obtain their residence ID card. Additionally, there is no physical presence requirement outside the biometrics and a few days before the naturalization ceremony.

Application processing time will take about four months

• The application undergoes an initial review process that includes a source of funds and background checks;
• The agency will complete their risk weighting to the application; and
• Once approved, an In-Principle Approval is granted.

Due diligence and compliance will take around four months

• The applicant has twenty-five days to pay the contribution component for citizenship (cost depends on twelve or thirty-six-month residence);
• Purchase or rent property as required by the secondary financial requirement;
• Decide on which NGO to donate to and make a final transfer;
• Submit personal Health Cover and assessment documents; and
• Hold residence for twelve or thirty-six months to complete the naturalization time.

A final visit to Malta to attend a naturalization ceremony and the applicant must take an Oath of Allegiance and obtain the Naturalisation Certificate. The certificate allows the newly awarded citizen to apply for a Maltese passport.

The Application Process for Malta�s Exceptional Investor Naturalisation Program

Eligibility Criteria

The requirements to qualify for citizenship of Malta as the primary applicant are as follows:

• Be above eighteen years of age;
• Have a clean criminal background, corroborated through the due diligence process;
• Be in good health. Applicants need to pass an essential physical examination;
• Submit a complete application through a registered agent; and
• Complete all transfers for the qualified investment. The capital must come from a legal source.

Malta decided to vastly improve their due diligence process, requiring applicants to undergo a thorough process. The DD process has four different stages and seven tiers. The process does not scare away investors but reduces the possibility of persons who could be a danger to the EU becoming a citizen of Malta.

Malta has a second investment program, the Malta Permanent Resident Program (MPRP), which provides permanent residence to its applicants. It comes at a cheaper cost than MEIN, and you can only apply for citizenship if you live in Malta for five years.

Due Diligence Tiers and Seven Risk Categories

The due diligence process ensures that each application receives the same scrutiny. The process follows a systematic approach to provide high consistency and transparency.

Due Diligence Tiers and Seven Risk Categories

Investors undergo a thorough due diligence process, encompassing an exhaustive background investigation. The country upholds the highest due diligence standard, rejecting around one in four applicants.

Each applicant needs to pass a four-tier due diligence process. Any errors or nefarious documents submitted to the CMA can lead to the application�s rejection. Malta�s due diligence is unparalleled among other citizenship-by-investment programs. MEIN is the only program with a marketed and official citizenship-by-investment program in the European Union.

Initial Stage

The first step involves the approved agent carrying out a standard know-your-client (KYC) screening. The CMA also performs a KYC when the client formally initiates the application process.

Second Stage

The CMA assumes responsibility for the following three stages. They conduct clearance checks with Interpol, Europol, and other police authority databases. Clients might be required to provide their Police Clearances from countries where they have previously resided. This second stage occurs during the initial residency application. Nationals from third countries requiring a visa to enter Malta must also undergo the standard Schengen visa application process.

Third Stage

Upon completing the residency application, the CMA assessors review the submitted application. They aim to detect any irregularities and underline potential risks at this stage. The CMA can access international databases to verify proof of funds and the legitimacy of business activities.

Final Stage

• The last stage involves the CMA finalizing the risk assessment report. The board will collectively review the information, and if they find the applicant legitimate, they will recommend approval to the Minister, who will make the final decision.

Seven-Category Risk Matrix

The CMA follow the below seven-category risk matrix to provide a final due diligence report to the Minister:

Identification and Verification

The CMA conducts an initial analysis of the KYC. They assess how the identity of the applicants has been established and verified. The process includes checks on all the applicants� countries ten years before the application.

Business and Corporate Affiliations

The CMA analyzes all of the applicants� business and corporate affiliations worldwide.

Politically Exposed Persons (PEPs)

Analyze applicants� political associations and determine if they are on any watch lists or have sanctions against them.

Source of Funds and Wealth

Analysis of the applicant�s funds and wealth accumulation sources, based on evidence provided: bank statements, articles of association, share registers, certificates of incorporation, certified copies of contracts, and transactions.

Reputation

The applicants� reputation is assessed based on the ground and open source intelligence.

Legal and Regulatory Matters

Analysis of the risks if the applicant has any charges or convictions for criminal and civil offenses.

Relative Impact on the Primary Applicant�s Immediate Network

Analysis of the activities and impact on the immediate network of the applicant within society. The research includes any areas not covered in the previous six categories.

The Benefits of Becoming a Maltese Citizen

One of the most significant advantages is children�s education access within the European Union. As an EU citizen, your children would be eligible for free or vastly reduced local citizen fees for undergraduate tuition at universities in countries like Germany, France, and Sweden, which can save tens of thousands of euros per year in tuition fees.

Healthcare in Malta is another significant benefit. The country has a robust healthcare system and is ranked among the top in the world by the World Health Organization. As a Maltese citizen, you will have access to this high-quality healthcare system, ensuring that you and your family are well cared for.

Malta also offers attractive tax residence programs. Special tax concessions are applied to non-resident or non-domiciled business people or company owners, significantly reducing taxes to single digits.

When living on the island for more than six months, tax residence programs allow qualifying individuals to pay tax on foreign income at a flat rate of 15% and remit the tax paid as a refund when they leave Malta. The tax savings are a return on investment from the donation for citizenship.

Regarding travel, a Maltese passport allows visa-free access to over 180 countries worldwide, including the United States, Canada, and Australia. It also grants the freedom of movement to live, work, or study anywhere in the twenty-seven EU member states. This mobility and access are invaluable for frequent travelers and those wanting flexibility in where they reside.

Frequently Asked Questions

Why should I consider investing in Maltese citizenship?

Maltese and EU citizenship through investment opens doors for visa-free travel, education, healthcare, tax incentives, and life in Europe.

Can my family apply with my application?

Yes, immediate children under twenty-nine and parents over fifty-five may be eligible to apply if they show financial dependency.

Why is MEIN the best in class?

The program has a thorough due diligence process, and Malta is an EU member state. European Union citizenship is very sought after.

Are there any European Union countries that are alternatives?

Not in Europe. Malta is the only European Union country with an official citizenship by investment program that awards citizenship after holding residence for twelve months.

Portugal, Greece, and Spain all have Golden Visa residence programs costing between �250,000 to �500,000 investment. Portugal allows citizenship with a limited physical presence. However, the process will last five to six years.