The Malta Permanent Residence Programme owes its origins in the 1960s when a retirement programme was operated to allow British retirees to relocate to Malta and receive their British pension in Malta enjoying Malta's favourable personal tax system. This has evolved and forked into a number of programmes some of which are still in existence today, including the Malta Global Residence Programme. The Malta Permanent Residence Programme (MPRP) evolves from the Malta Residence Visa Programme or MRVP, which is no longer accepting new applications. The Malta Permanent Residence Programme (MPRP) was launched in 2021 by virtue of Legal Notice 121 of 2021 and provides non-EU/EEA nationals of impeccable standing and repute the opportunity to apply for Maltese permanent residence.
The programme is especially attractive to retirees, authors, intellectuals and international consultants, entrepreneurs or simply persons seeking to establish an alternative residence in Europe that suits their lifestyle and tax profile. Beneficiaries of the MPRP are given the benefit of residing and staying in Malta as well as to travel within the Schengen Area for 90 days out of 180.
The Malta Permanent Residency Programme (MPRP) is a well-structured residence programme that allows individuals the right to obtain residency through investments in property, a donation to charity and a government contribution. The Programme's appeal lies in the comprehensive benefits it provides to individuals and families seeking to establish Malta as their second home. Some of these benefits include the right to reside and work in Malta, to penetrate Malta's real estate market, to add four generations in one application and to travel within the Schengen Area without the need of a visa. The MPRP programme is run through the Residency Malta Agency which is a government agency tasked with managing the programme which involves accepting residence applications, conducting due diligence and issuing the permanent residence status and residence cards. When processing applications under the MPRP, the agency applies a four tier due diligence process ensuring only applicants of good standing and repute are approved.
The MPRP falls under the Maltese Immigration Act however is regulated by Legal Notice 121 of 2021 as amended by legal Notice 57 of 2024.
Malta for Quality overseas living
The Malta Permanent Residence Programme is probably the most attractive residence programme available to individuals seeking to acquire permanent residence permit in a European country that is also part of the European Union & the Schengen Area. Typically applicants are seeking a warmer climate, a high standard of living, a safe environment for younger and older members of the family and a scheme for permanent residence that is selective, affordable and tax friendly. Malta ticks all the boxes for an attractive permanent residence jurisdiction and occupies the highest positions in respected international indexes for quality living and retirement.
Investments Qualifying for Malta Permanent Residence (MPRP)
Applicants can apply under the Malta Permanent Residence Programme (MPRP) on the basis of a contribution to Malta, an investment in property as well as a donation to a charity organisation.
The Malta government contribution is higher should the applicant choose to rent rather than buy a qualifying property. Currently the qualifying property in the south of Malta must be purchased for a minimum of €300,000 or rented for €10,000; while properties in the rest of Malta must have a minimum value of €350,000 or €12,000 in the case of rent. Property bought or rented under the MPRP programme is to be kept for at least 5 years.
A contribution of €68,000 is payable for investors who buy a qualifying property; whilst a contribution of €98,000 applies if the investor leases a property rather than buying a property. The contribution convers the applicant, the spouse and all children in the application. An additional fee of €7,500 applies when adding parents or grandparents of the applicant or the spouse.
In addition, applicants are also required to donate at least €2,000 to a local registered philanthropic, cultural, sport, scientific, animal welfare or artistic NGO registered with the Commissioner for Voluntary Organizations or as otherwise approved by the Residency Malta Agency.
Rental option:
€98,000 government contribution + €2,000 charity donation + €10,000 annual rent
Purchase option:
€68,000 government contribution + €2,000 charity donation + €300,000 property purchase
Malta Residence Eligibility Requirements
Apart from satisfying the three main requirements mentioned above, the main applicant must also show that he has €500,000 worth of assets, of which €150,000 must take the form of financial assets. The applicant and his dependants must also have a health insurance policy covering them in Malta and in the EU with a minimum annual coverage of €100,000.
The main applicant can include up to 4 generations of the family in one application. This includes:
- The spouse of the main applicant in a monogamous marriage or in another relationship having the same or similar status,
- Children of the main applicant and/or of the spouse who at the time of the application are not married and financially dependent on the main applicant
- Dependent parents and grand parents on either side who at the time of the application are financially dependent on the main applicant
Third country nationals, excluding EU, EEA and Switzerland citizens are eligible for the Malta Permanent Residence Programme. Currently, citizens of sanctioned countries of (or have close ties with) Afghanistan, Belarus, North Korea, Iran, Democratic Republic of Congo, Russia, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela are ineligible to apply.
Malta Permanent Residence Timeline
The process from submission till the completeness of the MPRP application can be divided into seven main steps. Total processing time can range from 6-12 months.
- Power of Attorney: The applicant is required to sign a Power of Attorney for the Licensed Agent to act on his behalf in terms of the Malta Permanent Residence Programme (MPRP) application.
- Submission of MPRP application: The licensed agent shall submit to the Residency Malta Agency all the government application forms together with all supporting documentation. Upon submission, a receipt will be issued to confirm the receipt of the application. The Residency Malta Agency issues an invoice for the €10,000 non-refundable fee to be paid by the applicant to the Agency within 1 month from the submission of the MPRP application.
- Due Diligence Process: The Residency Malta Agency applies a four tier due diligence process to ensure that only individuals and families of repute are accepted under the programme. The Residency Malta Agency, along with the licensed agent, jointly bear the responsibility for verifying all information provided by the applicant. The agent initially applies Know Your Customer (KYC) procedures during the onboarding process. Following this, the Agency's team conducts a secondary level of due diligence. They review the application for completeness and identify any anomalies that might indicate potential risks. The documentation submitted, such as notarized and apostilled documents and translations, is thoroughly checked for validity. If any documents are missing, the application process is paused until the agent submits the required materials on behalf of the client. The third step involves obtaining clearance from police authorities through comprehensive checks, including those against Interpol and Europol databases. An extensive online investigation follows, consulting international databases to identify any sanctioned individuals or companies. This investigation extends to all family members applying for residency, as well as their corporate partners and associates. In cases where additional clarity is needed, the Agency may request further information from the applicant to ensure a complete and accurate understanding of the family’s application. If necessary, information is cross-referenced with due diligence companies to maintain consistency.
- Issue of Letter of Approval: The final application file and supporting documents are present to the Agency's Approval Board which takes the final decision. If the application is approved, a Letter of Approval in Principle is issued.
- Settle Investments: The next step is for the applicant to settle the investment required which include the rent or purchase of a property, the donation to a charity or philanthropic organisation, and payment of the remaining balance to the Government.
- Biometric data taking and Issue of Maltese Residency Card: Once the investment is all done, the applicants are to travel to Malta to take biometric data. Each residency card is valid for 5 years and renewable thereafter.
- Annual Compliance: On an annual basis, the Agency will ask the Licensed Agent to submit on behalf of the applicant proof that the property is still being held and proof of the health insurance cover. This is done annually for the first 5 years, and then whenever the Agency deems fit at its discretion.
Benefits of obtained Maltese Permanent Residency
Malta continues to take note of a competitive market place of European countries competing in their attractiveness for foreign investors. Accordingly, some competitive advantages include:
- Permanent residence status is not lost if the resident does not reside in Malta in any given year
- No need to purchase property if property. Property rental option is available
- Children maintain PR status when they become adults or find employment
- English is an official language in Malta
- Visa free travel to the Schengen Area for 90 out of 180 days
- Permanent residence granted for life with the right to live and work in Malta
- Ability to include dependents post approval stage. This can include spouses and children of already approved applicants.
Tax System for Malta Permanent 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.
- A minimum annual tax liability of €5,000 applies to person benefiting of Malta's res non-dom tax status.
- 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.
- No worldwide income/wealth tax - tax only paid on income remitted to Malta.
- No Inheritance/Wealth Taxes
Permanent Residents of Malta are entitled to taxation at the flat rate of 15% on remitted income if, instead, they apply under the Malta Global Residence Programme - this attracts a higher minimum tax of €15,000 for the privilege of a flat rate of tax on remitted income only.. Income arising in Malta to a permanent residence permit holder is subject to tax at 35%.
Our Malta Permanent Residence Services
The Firm's award-winning Immigration & Relocation Law team is the oldest specialised immigration law practice in Malta. We have successfully represented hundreds of individuals and families ranging from expatriate retirees, emigrants seeking employment, to HNW individuals listed in Fortune 500. 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.
Dr Priscilla Mifsud Parker is a Licensed Agent under the MPRP regulations and holds licence AKM-ACCA.
