Economic citizenship: why MALTA is gaining traction as gateway to Europe ?

Interview of Reuben Buttigieg, Managing Partner, Erremme Business Advisors, Malta

Obtaining Second Residency or Citizenship by Investment

Seems like Citizenship and Residency by Investment has become a new must have for High Net Worth Individuals. Why is that?

Undoubtedly, Relocation by Investment offers various benefits, both short and long term for the qualifying applicant and his/her dependents; to name a few:

Freedom of Movement
In such a globalized and fast paced world having a strong passport is essential. For instance, if an individual needs to travel urgently and a visa is required, bureaucratic application processes will minimize the probability of reaching the desired destination in time.

Investment for the family
A safe country, with high level of education and work opportunities is ideal both an individual and well as for the family’s future.

Business Opportunities
Having an opportunity to travel freely usually creates more opportunities for business for a forward looking Entrepreneur.

Tax Aspects
Tax implications could also result in an advantage when acquiring citizenship/residency, for example in certain countries; such individuals are only taxable on incoming arising within country.

Why is Malta an attractive choice for prospective applicants?

Geographically speaking Malta is situated in the middle of the Mediterranean, between African and European countries. Enjoying marvellous views and eye catching sights, Malta is definitely the ideal place to relocate. Its stable political system, low crime rates and a strong educational system, make it even more ideal for families.

Furthermore, Malta could serve as a strategic gateway to EU countries and MENA region. Maltese citizens enjoy from 160+ visa free countries including the USA, UAE and EU member states amongst many others.

Are there any Tax implications that make Malta different from other jurisdictions?

Tax in Malta is based on residency and domicile. As a Maltese Tax resident an individual is subject to Tax in Malta on any Malta source income and on any foreign income remitted to Malta. Capital gains arising outside Malta will remain non-taxable even if remitted to Malta.

Alternatively, if an individual is neither a Tax resident nor domiciled in Malta, tax will only be applicable on income arising in Malta.

What are the major contributions required for both the citizenship and residency programmes in Malta?

Contributions required for the Maltese citizenship programme are as per below:

• Eur650,000 payable to the Malta National Development and Social Fund;
• Investment in Real Estate either in the form of purchase for a minimum of Eur350,000 or lease for a minimum of Eur16,000 to be held for a minimum of 5 years;
• Investment in government bonds or stocks of a minimum of  Eur150,000 to be held for 5 years;
• Additional contributions and Due Diligence fees depending on number of dependents.

With regards to the residency programme, contributions are as follows:

• Application fee to the Malta Residency and Visa Agency of Eur30,000 covering the Main Applicant, Spouse and dependent children;
• Investment in Real Estate of a minimum purchase of Eur270,000 or lease of Eur10,000 depending on geographical area to be held for a minimum of 5 years;
• Eur250,000 investments in government stocks and bonds to be held for 5 years.

Most of such contributions are applicable upon approval in principle of the application.

How can Erremme Business Advisors assist?

Erremme can provide a preliminary consultation on the application process, offer expert advice in preparing the necessary documentation and assist in relationships with Real Estate Agents and Investment Firms, amongst others.