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Maltese Government launches revamped Residency-by-Investment programme for 2021

Maltese Government launches revamped Residency-by-Investment programme for 2021

Maltese Government launches revamped Residency-by-Investment programme for 2021

The Maltese government remains committed to improving its globally sought-after residency programme for high net-worth individuals with the launch of a newly configured programme operated by the newly-renamed Residency Malta agency.

During a presentation for industry stakeholders by Hon. Alex Muscat, MP and parliamentary secretary for citizenship and communities, participants were given an overview of the main changes to the residency-by-investment scheme in 2021.

The new programme has been renamed the Malta Permanent Residence Programme (MPRP), and while it retains several of the attractive features from the former Malta residence and visa programme, the MPRP introduces tighter controls and a heavier focus on strengthening the ties between prospective investors and their new country of residence.

Commenting on social media after the presentation, Mr Muscat said that the Maltese government is “meeting stakeholders involved in various foreign investment programmes [...] to sustain continued dialogue and implement reforms which will attract further investment to our  country.”

Two investment options which lead  to permanent residency in Malta; revised fees and contributions

New applicants may still choose to either purchase or rent property in Malta as a pathway toward obtaining permanent residency in the country; however, the mandatory investment in government bonds or stocks has been removed from the updated programme.

In fact, one of the most significant changes to the MPRP is removing the flat fee paid by the main applicants in favour of a system of fees and contributions. Applicants who purchase property in Malta must contribute €68,000 (up from €30,000), including administrative fees, while investors who rent their property will be required to contribute €98,000.

Costs of adding dependants and personal eligibility conditions

The costs of extending the status and privileges of residency to dependants have also been updated in the revised programme. Adding parents, grandparents, and spouses to a residency application will involve an additional €7,500 fee for each individual, while the fee for both adult and minor children is set at €5,000.

Another noteworthy change to the pre-existing programme is the removal of the €100,000 annual income eligibility requirement. Instead, applicants will be required to prove ownership of capital worth €500,000, of which €150,000 should be financial assets.

Whereas the previous programme obliged applicants to retain their capital indefinitely, the upgraded programme offers increased flexibility as it requires investors to keep the minimum capital requirement of €500K for the first five years of residency only.

Additionally, there has also been a change in the health insurance policy which should now only cover risks in Malta and not within all of the European Union. 

Application timeframes and other changes

The timeframes for application reviews and payment of fees and contribution within the new programme have also been tweaked. Applicants may now expect a waiting-time of four to six months for their first review.

The initial fee must be paid within a month from submitting the application, while administration fees and the final contribution must be paid within two and eight months respectively from receiving of the letter of acceptance (LOA).

Other adjustments to the residence programme include a one-time donation of €2,000 to a Maltese non-governmental organisation (NGO), the introduction of a marketing fee, and the elimination of concessioners.

Residency Malta will also be diverting part of the revenues generated from the running of the programme to a new corporate social responsibility (CSR) fund.

Focus remains on efficiency, security and value for money

Malta is working hard to remain the leading player in the industry by enhancing its residency-by-investment programme and safeguarding its reputation as a safe, stable and serious jurisdiction with one of the most robust economies in the European Union. 

RC International offers free, private consultations with its team of citizenship and residency planning professionals to assist individuals who want to secure a flexible and global lifestyle for themselves and their families, as well as meet their personal and wealth objectives. 

Contact us today to discuss your questions about the 2021 Malta Permanent Residency Programme and start planning ahead with confidence.

 

To see how the combined expertise of our consultants and partners could work for you, contact us to arrange a free private consultation. 

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