Which European country offers citizenship through investment?

Malta citizenship through investment 2014

Since its introduction in early 2014, the Malta Individual Investor Program (IIP) has offered wealthy individuals and their families from around the world citizenship in Malta, an internationally respected EU member. At Kresse International we advise you on your options for naturalization.

People who meet the requirements are guaranteed citizenship in Malta through naturalization. With the Maltese citizenship, which includes the EU citizenship, the establishment of a residence in all 28 EU countries and Switzerland is possible. It also enables business establishments in Malta and visa-free travel to over 160 countries worldwide, including the USA.

Requirements for the Individual Investor Program Malta

1. Good repute

The Maltese Citizenship by Investment program has one of the strictest screening processes to ensure that only innocent individuals obtain Maltese citizenship. There is a four-tier review process for this, in which applicants are examined directly by the government. Applicants must not have committed any crime, which is matched directly with INTERPOL, the International Court of Justice and various other sources and authorities. In addition, they must present a police clearance certificate as part of the inspection.

2. Comprehensive health insurance coverage

The applicant must not have any contagious diseases. In addition, he must have internationally valid health insurance with coverage of at least € 50,000. Proof of repatriation in the event of illness or death is also required for both of these health insurance policies.

3. Financial contribution

Any applicant and their family members moving to Malta must pay a non-refundable levy to the National Development and Social Fund. The fund, which is on a par with the central bank, finances projects in the fields of health care, education, job creation, welfare and research.

In principle, the following taxes must be paid four months after receiving the approval for naturalization:

  • For the main applicant - € 650,000
  • For the spouse - € 25,000
  • For each minor child - € 25,000
  • For each unmarried child between the ages of 18 and 26 - € 50,000
  • For parents & grandparents of the applicant - € 50,000 each

Buying or renting real estate

Applicants must commit to holding property in Malta for a period of at least 5 years. This can be done by buying a property worth at least € 350,000 or by renting it with an annual rent of at least € 16,000. Proof of purchase or rental must be provided within four months of receiving approval for naturalization.

Investment in government bonds

Furthermore, the applicant must invest at least € 150,000 in government-specified securities (government bonds, stocks, bonds that benefit the country) and undertake to hold them for at least five years.

4. Residence requirements

When buying or renting a property in Malta, applicants receive a so-called eResidence Card as identification. This signals the beginning of their settlement in Malta and shows their already close connection with the country. 12 months after an applicant has taken up his main residence on Malt, he is entitled to be naturalized. That doesn't mean that every single day of the year has to be spent in Malta. Maltese law defines residence as "the intention to be resident in Malta for each tax year, presumably with a stay of at least 183 days per year or by buying or renting a property together with a stay in Malta". Ultimately, this means that by purchasing or renting a property on the Mediterranean island, which is already mandatory, and receiving the Malta eResidence Card, all requirements are met and the applicants do not have to meet any further residence requirements in Europe.

Applicants who have already lived in Malta for one year before applying for naturalization, i.e. who have already established a residence on the Mediterranean island, can be naturalized much faster.

5. Steps to naturalization

Applicants who are not already resident in Malta are advised to move to Malta immediately in order to begin the twelve month residency period as soon as possible.

When establishing the main residence, an amount of € 5,000 for the main applicant and € 1,000 for each additional person must be paid to the National Development and Social Fund.

6. Application for naturalization

Applications for Maltese citizenship through investment must be submitted to the "Identity Malta" authority. Applicants must be represented by a consultant who is approved for this purpose in Malta. At Kresse International we work with various Authorized Mandatories.

7. Taxation after naturalization

The Maltese tax system is based on residence - not citizenship. Acquiring Maltese citizenship does not automatically mean that you are tax resident in Malta.

However, tax residency in Malta is presumed if a person resides in Malta for at least 183 days per year. Tax residents in Malta who do not have their main residence in the Maltese Islands are taxed on a remittance base. Someone who is not resident in Malta is also not taxable in Malta on foreign income. Only Maltese income and capital gains can be recognized under Maltese tax law for a person who is not domiciled in Malta.

We will be happy to provide you with detailed information about the individual steps in personal contact as well as the exact procedure at Identy Malta. As a Maltese partner, we cooperate with one of the leading "Accredited Agents", so that you can be sure that the combination of our know-how and local practice will ensure that your application will be optimally looked after and that your application will have the best possible chance of success.