Why Malta?
Before diving into the residence and citizenship options, it's important to understand why Malta is such a popular choice for South Africans:
- Strategic Location: Situated in the Mediterranean, Malta offers convenient access to Europe, Africa, and the Middle East.
- Favorable Tax Regime: Malta’s tax system is attractive for expatriates and high-net-worth individuals, offering various benefits for residents.
- Quality of Life: Malta boasts a rich cultural heritage, excellent healthcare, and a growing expat community, making it a great place to live and work.
- EU and Schengen Access: Holding Maltese residency or citizenship grants visa-free or visa-on-arrival access to numerous countries within the EU and beyond.
- Safety: Malta is known for its low crime rates and high levels of safety, making it a secure environment for families and professionals alike.
- English-Speaking Country: English is an official language in Malta, which makes it easier for South Africans to integrate into the community, navigate legal processes, and conduct business.
Malta Permanent Residence Program (MPRP)
The Malta Permanent Residence Program(MPRP) offers a pathway to obtain permanent residency in Malta.
Key benefits of the MPRP
- Visa-free travel: Permanent residents can travel visa-free to the Schengen Area
- Family can apply in one application: Spouses and dependent children can also obtain permanent residency.
- Flexibility: No minimum stay requirements, with an option to reside in Malta indefinitely.
- Permanent status: Residence status is for life for all members of the family.
There are three main requirements, which all need to be fulfilled in order to acquire permanent residence in Malta:
- Pay a one-time application fee to the Government of €98,000 when renting a property or €68,000 if purchasing a property, and
- Rent a property in Malta for €10K/€12K per year OR purchase a property for €300,000/€350,000. Property under the MPRP is to be kept for a period of 5 years and
- Pay a donation of €2,000 to a local registered philanthropic, cultural, sport, scientific, animal welfare or artistic NGO.
In addition, in order to be eligible to apply under the MPRP, the applicant needs to declare and provide evidence thathe is in possession of assets having a value of not less than €500,000 out of which a minimum of €150,000 shall be in the form of financial assets.
Global Residence Programme (GRP)
The Global Residence Programme is a taxresidence programme aimed at attracting Non-EU nationals. An application canencompass the main applicant, their spouse, financially dependent parents andchildren up to the age of 25. Applicants are required to demonstrate financialself-sufficiency and maintain a valid health insurance coverage.
Under the Malta Global Residence Programme,residence permit holders must meet the property requirement by purchasing orrenting property in Malta within 12 months of establishing residence.Applicants must show they have an address in Malta, whether through ownershipor rental.
Minimum property values apply: €275,000 forproperty in Malta, €220,000 for properties in Malta’s Southern Region, and€250,000 for Gozo properties. Alternatively, applicants can meet the rentalrequirement, with annual rents set at €9,600 for property in Malta or €8,750for properties in Gozo or the Southern Region.
In addition to the above, applicant mustalso pay a one-time non refundable fee to the government of €6,000. Beneficiariesof the special tax status granted in terms of the Global Residence Programmewill need to pay a minimum tax of fifteen thousand euro (€15,000)annually.
Hence the requirements of the GlobalResidence Programme can be split into three:
1. Property rental or purchase
2. A one time fee of €6,000 and
3. An annual minimum tax of€15,000
Although one is not required to reside inMalta under this programme, applicants must also declare that they do notreside in any other jurisdiction for more than 183 days in a calendar year.
Key benefits of the GRP
- GRP residents can travel visa-free to the Schengen Area
- No minimum presence required
- Income remitted to Malta is charged at a flat rate of 15% tax
- Applicants entitled to double tax relief
Malta Citizenship by Investment for South Africans
Malta offers citizenship by investment to individuals who meet the requirements of legal residency in Malta for a minimum of 12 months, successfully pass the stringent due diligence process, and make substantial contributions to the country. The Maltese government in 2020 introduced updated legislation governing the provision of citizenship by investment, formally titled the Granting of Maltese Citizenship for Exceptional Services Regulations, outlined in Legal Notice 437 of 2020.
To be eligible under these regulations, the applicant for Malta Citizenship by Investment must be at least 18 years old and fulfil specific due diligence and residency requirements. The main applicant may also include dependents in the citizenship application, such as a spouse, financially dependent and unmarried children up to age 28, and parents or grandparents over 55, subject to certain conditions, to qualify under the Malta Citizenship Regulations.
To apply for Malta Citizenship by Investment, applicants must undergo a four-tier due diligence process and a medical assessment, along with meeting three primary financial requirements:
• Make a non-refundable exceptional contribution of either €750,000 for a 12-month residency period or €600,000 for a 36-month residency period.
• Donate at least €10,000 to a registered Maltese non-governmental organization.
• Rent a property in Malta for at least €16,000 annually or purchase a property in Malta for at least €700,000, which is to be kept for at least five years.
Key benefits of obtaining Maltese citizenship
- Maltese citizens enjoy visa-free or visa-on-arrival access to over 190 countries, including the EU, the Schengen Zone, the UK, and the United States under the Visa Waiver Program.
- The right to live, work and study in all European countries
- The country’s regulatory framework is investor-friendly, making it an appealing location for business and investment.
- Malta offers a Mediterranean lifestyle with a mild climate, a rich cultural heritage, and a safe environment. It also boasts excellent healthcare and education systems.
- The program allows for the inclusion of immediate family members, offering them the same benefits.
Conclusion
Malta offers a range of residency andcitizenship options for South Africans seeking a better quality of life in aEuropean country. Whether you are looking for permanent residency orcitizenship, Malta's stable economy, favorable tax regime, and excellentstandard of living make it a compelling choice.
