Malta Permanent Residence Programme (MPRP)

Eligibility for Malta Permanent Residence Programme

In order to be eligible for the programme, the applicant must show that he is in possession of €500,000 in capital, of which €150,000 must take the form of financial assets, such as bank deposits or stocks. Alternatively, applicants may also show a capital of €650,000 out of which, €75,000 must be in the form of financial assets.

Family applications are allowed by the Malta Permanent Residence Programme.  The following family members may be included in a family application for Maltese permanent residence:

• spouses or unmarried long term partners;
• dependent unmarried children up to the age of 28, as well as
• parents and grand parents on either side

More about Eligibility and Requirements for the Malta Permanent Residence Programme in our MPRP FAQ section

Investments Qualifying for Malta Permanent Residence

The MPRP rules require the following investment to be done approval:

• Property Commitment:
  • Rent a property with a minimum annual rent of €14,000, or
  • Purchase a residential property for at least €375,000.
• Government Contribution:
  • A fixed contribution of €37,000, regardless of property option chosen. A fixed fee of €7,500 is to be paid for each adult dependent (apart from the spouse)
• Administration Fee:
  • A total of €60,000, payable in two stages:
  – €15,000 upon submission of the application
  – €45,000 after receiving the Letter of Approval in Principle
• Charitable Donation:
  • €2,000 to a registered Maltese NGO or charity.

Hence, an applicant must:

1. Choose a property investment (rental or purchase)
2. Pay a non-refundable administration fee of € 60,000, together with a €37,000 contribution
3. Pay a €2,000 donation to an approved charity or NGO.

Malta Permanent Residence: Time Frame

From the Agency’s side, there is a renewed commitment towards increased efficiency, with a targeted processing time of 6-10 months, leaving due diligence of applicants as paramount over speed considerations.

Malta continues to take note of a competitive market place of European countries competing in their attractiveness for foreign investors. Accordingly, some competitive advantages:

• Permanent residence status is valid for life
• No need to purchase property
• Property bought or rented under this programme can be sub-let
• It is possible to apply for a temporary residence permit while waiting for the Permanent Residence Permit.

Tax System for Malta Permanent Residents

The Malta Permanent Residence Programme is tax neutral and does not offer any tax benefits, nor does it create any adverse tax effects. Malta’s tax system applies independently of the MPRP.

Tax resident status is not an automatic consequence of acquiring permanent residence in Malta.

Tax Resident Status

Tax resident status results from a residence in Malta of over 183 days, or where residents have spent less than the 183 days in Malta, they may demonstrate various connecting factors evidencing their intention to reside in Malta ordinarily. Permanent residents of Malta requiring formal confirmation of their tax residence status in Malta are able to obtain this through a separate procedure – prior legal advice is recommended. Contact us for a tax consultation.

Non Tax Residents

Non-tax residents are only subject to tax on local source income. Tax residents of Malta enjoy a remittance basis of taxation, often referred to as res non-dom taxation, whereby they are only subject to Maltese tax on their foreign income only to the extent remitted to Malta, and not on their foreign source capital gains, whether remitted or not. The enjoyment of the res non-dom tax regime by persons having incomes sources abroad exceeding €35,000 are subject to a minimum annual tax of €5,000.

Under Maltese law, the connecting factors determining the taxability of individuals are domicile and residence, remnants of Malta’s British colonial history. Citizenship is not a factor that effects the taxation of individuals.

Income is taxable in Malta only if it arises in Malta. Income arising abroad, is only taxable in Malta if a person is tax resident in Malta and only on that portion that is remitted to Malta. Capital gains are taxable in Malta only if arising in Malta but are subject to various exemptions. Capital gains arising out of Malta are not subject to tax, nor are they reportable, whether remitted to Malta or not.
Malta has no wealth or capital taxes, no wealth reporting obligations, no inheritance taxation, no property taxes, no dividend taxes, and no system of rates.

Learn more about personal taxation of Maltese Residents

Our Malta Permanent Residence Services

ACC is a Maltese Immigration Firm holding licence number AKM-ACCA. We guide high net worth international families and their businesses on subjects as diverse as residency & citizenship, corporate, tax, financial services, fintech, property.  Over the last 20 years, our Malta Permanent Residence specialists have successfully represented hundreds of individuals and families ranging from expatriate retirees, emigrants seeking employment. We are committed to promoting Malta as a welcoming investment and relocation destination, with a history of hospitality and multi-culturalism.

We are able to advise you on the tax and legal implications and requirements of the residence application process and indicate expected time frames based on the specific circumstances and nature of your application. Our advice covers the rules applicable to immigrating to Malta under a number of available residence schemes as well as practical relocation assistance ranging from transportation and insurance to schooling and health insurance coverage.