Malta Citizenship by Investment 2019 (New Status Symbol)
This video shows the cost, the benefits and the time frame of obtaining a Malta Citizenship by Investment 2019. The Malta Passport has become the latest status symbol. Some of my Arab clients have become passport collectors. They have a few of them. Since immigration policies are becoming more restrictive everywhere, freedom of movement is a key factor for international business people. A Malta passport is the most reputable passport money can buy. This video shows how Malta Citizenship by Investment Program works, including the latest developments.
Malta Citizenship by Investment Program was introduced in 2014 and is approved by the European Union. The official name is Malta Individual Investor Program (IIP). It offers a second passport and citizenship option to families wishing to relocate to a European Union country. The Malta Passport by Investment granted by this program is valid for life. It can be transferred to future generations by decent.
Malta has a strong economy and a very stable political system. The country is a member of the EU since 2004 and is part of Schengen since 2007. Maltese citizens have freedom of movement and direct access to the markets in the European Union. Malta sold over 1500 passports.
How can I get Malta Citizenship? What are the eligibility criteria
You should be 18 years old. You must provide proof of economic self-sufficiency for the Malta residence permit and the Malta Citizenship by Investment Program. Economic self-sufficiency means showing an annual income of at least 100’000 EUR. That’s the same requirement as per Malta residency by Investment or Malta investor visa. You have to submit a clean criminal record. That’s a very important requirement.
Checks are conducted with the International Criminal Court, Interpol and other sources. If you made criminal offenses don’t hide it. They will discover, your past if you made mistakes. If you made a minor offense, we will solve the issue. The due diligence standards are very high. Applicants must past the Fit and Proper Test. You and your family must be in excellent health conditions.
How much does Malta Citizenship cost? What are the financial contribution and investments
The following contributions must be effected within 4 months after the Malta IPP Letter of Approval in Principle. You must do a non-refundable contribution of 650’000 EUR and invest 150’000 EUR in government bonds. Contributions and investments can be done AFTER the Approval in Principle of the demand. The spouse and minor children must contribute with 25’000 EUR per individual. Unmarried children from 18 to 26 pay 50’000 EUR. Dependent parents and grandparent pay 50’000 EUR each.
What’s better? The property acquisition or renting an apartment?
You must purchase a house or apartment for 350’000 EUR or rent a house for 16’000 EUR per year with a 5-year contract. Please be advised that the property can’t be rent out. Properties acquired with the Portugal Golden Visa can be rented out – not in Malta.
You have to invest 150’000 EUR in Government Bonds or Shares and keep the investment for 5 years. Evidence of the source of funds must be presented. The level of source of funds investigations is much higher today.
The total cost depends on the number of family members if you rent or buy real estate, due diligence, passport and banking fees. The non-refundable contribution amounts between 650’000 EUR and 850’000 EUR. The non-refundable contribution is higher if you rent real estate.
What are the residency requirements?
As soon you have your property you receive a E-Residence Card. You can use this card as evidence to demonstrate your genuine link to Malta. 12 months after having kept the residence in Malta you receive the Citizenship. The law in Malta defines the residence as an intention to reside in Malta at least for 183 days per year. If you are resident in Malta before receiving the E-Residence Card you already satisfy the residency requirement and you can subsequently become a citizen of Malta much faster.
To receive citizenship as fast as possible, you can start a nominee’s residency in Malta. You pay 5’000 EUR and additional 1’000 EUR for each family member to the National Development Funds and Social Fund.
Do I need to speak Maltese?
No language tests in Maltese or English are imposed for the Malta Citizenship by Investment Program.
There is a risk of losing the passport through revocation?
If you don’t respect the requirements the Malta Passport can be revoked. If you sell the property before 5 years, your Citizenship can be canceled and the passport revoked.
Is Malta a member of the European Union?
Since 2004, Malta is a full member of the European Union. EU freedom of movement treaties is allowing Maltese Citizens to work, live, and study in any EU Country, including Switzerland.
How about Schengen Countries?
Since 2007, Malta is part of the Schengen Area. 26 EU countries are accessible without going through border control. In addition, you can travel to Norway, Switzerland, Iceland and Liechtenstein being members of the European Free Trade Association (EFTA countries).
Do I need a lawyer representing me in the Citizenship by Investment Program?
Contrary to the Golden Visa Portugal Program, applying for the Citizenship by Investment Program on your own is not allowed. The engagement of an accredited representative is imperative to get the application started. Contacting a certified individual is the only way to start a successful procedure.
As real estate brokers in Malta are usually paid by the seller, you should always be careful.
Now, I am alerting you. Don’t throw money out of the window with a fraudulent real estate agent!
Real estate agents are in a conflict of interest situation. Some real estate agents are offering overpriced properties for exactly 350’000 EUR to comply with the Malta Citizenship by Investment Program. The market value is far below 350’000 EUR. Therefore, you should hire an independent lawyer to deal with your real estate acquisition. Investing in a local independent real estate lawyer is an excellent investment for finding the best property covering your needs and expectations.
Most of our clients hire a lawyer recommended by Caputo & Partners. A local and independent real estate lawyer is in a position to guide you through the real estate opportunities and finding the property of your dreams. Don’t be a victim of a cheap scammer. Be prudent and watch out.
As housing prices in Malta are constantly going up the real estate investment should be made in areas with high growth potential. Therefore, having a local matador knowing the market on your side is so important. Please be informed that you must keep your real estate investment for 5 years.
We are more than happy to give you an overview on the most promising real estate investments available. Write an email and we will touch base with you to discuss your most promising real estate investments in Malta.
Do I qualify for a Maltese passport?
You have to maintain a genuine connection to Malta to comply with the Malta residence permit requirement. A commitment to a minimum physical presence is required. Your official agent will collect an official approval on your effective residence duration.
If you are fulfilling the above conditions imposed by the Malta Citizenship by Investment Program you and your family are entitled to receive the passport one year after the filing has started.
Here are the 5 Steps for obtaining the Malta Passport
The Infographic shows the 5 Steps needed for the Malta Passport.
The main applicant must be in good standing. The contribution of 650’000 EUR, the investment in government bonds of 150’000 EUR and the property transaction must be accomplished. The genuine connection must be evidenced. If these 5 steps are accomplished after 1 year you will be the owner of a Malta passport.
What are the Benefits of Malta Citizenship by Investment Program?
Freedom of Movement is the main benefit. In case of emergency or revolution in the home country, you can fly to Malta and reside at any time. There is no requirement to reside all the time in Malta.
Visa-free travel to 182 countries, including the EU, USA and Canada.
You have the right to live, study and work in 28 EU countries, Norway, Iceland, Switzerland & Liechtenstein. Parents, spouse, minor children, unmarried dependent adult children below 27 years of the main applicant are entitled to be included. Descendants are automatically entitled to receive citizenship. Malta has no data exchange with the home country. It’s important for nationals of countries not allowing dual citizenship such as China. Malta is a safe country. You can live a European and Mediterranean lifestyle in a low-tax country.
The Citizenship will be approved after 4 months processing duration if you already reside in Malta. The applicants have important tax advantages as their foreign income is not taxed due to the Non-Domiciled Tax Status. The fast track residence permits can be obtained within 1 to 3 weeks, including Schengen mobility for 18 months.
The Malta Citizenship it’s an EU Citizenship by investment. The EU passport will be issued after a total of 12 months from the day of the first residency.
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Let me speak about a very important Tax Advantage as a New Citizen, the Resident Non-Domiciled Tax Status.
Malta absorbed the UK tax system based on Domicile and the effective Residence – Not based on Citizenship like it is in the USA. Residence for tax purposes is based on the intention to stay in Malta for indefinite time or at least for 183 days per year.
A Passport issued based on the Malta Citizenship by Investment Program does not have any tax consequences. If you move your primary residence in Malta you can retain the Privileged Tax Status of a “Non-Domiciled” person and therefore benefit of extremely advantageous tax treatment.
Not domiciled tax residents are taxed on a remittance basis. That means that Non-Domiciled with primary tax residence are not taxed in Malta for foreign source income not received in Malta and not on capital gains realized outside Malta whether remitted or not. Subject to taxation is income and capital gain realized in Malta.
The corporate tax in Malta is 35% but special tax schemes apply to non-resident company owners. If you own a company in Malta as a non-resident you can reduce the corporate tax for your company to 5%. If you want to take tax advantages and reduce taxation by using companies in Malta for the business set-up, you should definitely contact me to explore the options.
There is a tax on property?
No. After 5 years, the property in Malta can be sold, completely, exempt, from tax.
Let me give you 5 additional tax benefits:
- No inheritance taxes
- No estate duties
- No net worth or wealth taxes
- No municipal taxes, rates or real estate taxes
- There are Double Taxation Treaties with more than 60 countries
Malta is definitely a tax paradise.
How fast can I become a Citizen of Malta?
Let me give you some information on the application timeline.
If you do not reside in Malta the minimum amount of time to become a Citizen by Investment are 12 months.
If you already stay in Malta you can become your passport within 4 to 6 months.
Day 1. The Filing of the Application with the Identity Malta, the competent authority in Malta, by an accredited person takes place.
Within 90 days, the Identity Malta confirms that the application is formally correct and the supporting documents accepted.
Within 120 days, the Approval in Principle arrives under the conditions that the investment obligations are executed.
Within 145 days, the National Development and Social Fund Contribution must be made by this time.
Within 240 days, the final compliance is accomplished. The applicant must submit the evidence for the investment in bonds of 150’000 EUR and the real estate investment for min. 350’000 EUR.
After the Oath of Allegiance is done, the authorities will issue the Naturalization Certificate and the Biometric Passport.
12 months since the first day of residence in Malta are required to get the Naturalization Certificate and the Passport.
What are the latest Updates regarding Passport by Investment?
The Source of Funds Investigation is very strict. The Malta Citizenship by Investment Program is refusing applicants having difficulties in producing the source of funds documentation.
Since today, more than 1400 Citizenships have been granted to nationals of more than 40 countries. Based on the pressure from the European Union, Malta has become stricter with the source of funds investigations. The Malta Citizenship by Investment Program is fully approved by the EU. This year, Malta decided to extend the Citizenship by Investment Program beyond the quota of 1800 applicants.
The price for real estate in Malta is skyrocketing. A tailor-made real estate investment can be a very attractive investment if the real estate property is located in a promising location. The Malta Citizenship by Investment Program is considered the most reputable Citizenship by Investment Program beside Cyprus Citizenship by Investment.
Last year, 2 new Citizenship by Investment Programs were born. Moldova and Montenegro are offering Citizenship by Investment Programs since 2018. The Montenegro Citizenship by Investment Program is very attractive because Montenegro will be part of the European Union in 2025. A new Armenia Citizenship by Investment Program will come up during the current year 2019. The Armenian authorities are working on it. They are drafting the laws. For the moment, only the President of Armenia can issue a passport against a substantial investment into the country.
Watch out. This is an alert. Don’t ask the President for a passport. Such a passport has no legal basis. It’s much better to wait until the laws for the official Armenia Citizenship by Investment Program are in force. A passport exceptionally given by the president may be revoked by the subsequent president. It’s crucial for your own protection to accept second citizenship if there is an official law supporting your passport.
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