10 benefits and 5 disadvantages of Malta permanent residency

Malta provides a pathway to permanent residency for investors. It's often more appealing than non-investment routes to residency in Malta, though it does come with some limitations.?

Before deciding on this investment option, let's carefully consider all the pros, cons, and requirements.

All advantages of permanent residency in Malta

Starting with the investment program perks, it is:

1. The quickest route to permanent residency in Malta, far faster than the five to six years required for naturalisation.?
2. Unlike many EU investment offers that only grant temporary permits requiring frequent renewal, Malta provides lifelong residency.?
3. The investment is made only after Due Diligence and approval.?
4. The ability to include family members without age limits—unlike Portugal's program, which caps participation at age 26—and even unofficial spouses are eligible to apply.?
5. Notably, you don’t need to live in Malta to maintain your residency.

Benefits of being a Maltese permanent resident. Once investors and their families get their Malta residency permit cards, they enjoy all the privileges of permanent residency, which include:

1. The option to immigrate to Malta. Notably, the permanent residents can live in the country without time limits or just visit occasionally—that’s up to you.
2. Visa-free travel within the Schengen Area for up to 90 days every 180 days, allowing easy movement across Europe.?
3. Holders of the residence permit also gain access to Maltese healthcare, which ranks higher than many advanced nations, including the USA and Israel.
4. For educational pursuits, residency enables access to state universities in Malta, where education is free and supported by financial aid like scholarships and tax deductions for talented students.
5. Permanent residency facilitates business opportunities in Europe and profitable real estate investments, with the potential for annual rental returns of 5 to 15% on property, enhancing its appeal as a long-term investment strategy.

Disadvantages of the Malta Permanent Residence Programme

However, there are some challenges with the Malta Permanent Residence Programme.?

Each family member must undergo a Due Diligence check, costing an upfront fee of €10,000, which is offset against future mandatory payments if the application is approved.

Financial dependency of family members, such as children, parents, and grandparents, is required, with documentation needed to prove this dependency.

Residency maintenance requires a registered address in Malta, whether owned or rented, with the flexibility to change addresses by submitting the relevant property agreements.

The housing requirement varies, accumulating over €50,000 in non-refundable rental costs over the first 5 years. Alternatively, investors can buy property, potentially benefiting from rental income and resale value.

The program also entails several non-refundable fees, including a €40,000 administrative fee, a government fund contribution of €28,000 for buyers or €58,000 for renters, and a €2,000 donation to a non-government organisation, totalling up to €70,000 for buyers and €160,000 for renters over five years.

How an investor can become a Maltese permanent resident

But if the benefits outweigh the disadvantages and you are ready to invest in a better future connected with Malta permanent residency, here are the standard terms and conditions.

Requirements for applicants. To apply for a residence permit in Malta, you must be over 18, have a clean criminal record, have no visa denials from countries with a visa agreement with Malta, and demonstrate legal sources for your investment funds. You should also have at least €500,000 in capital, with €150,000 of that in liquid assets.

Investment conditions. As mentioned, investors can opt to rent or buy real estate. The cost doesn't change based on the number of family members.?

Purchasing requires at least €350,000 in central areas or €300,000 in the south of Malta and Gozo. Buying ties up 83% of residence costs in real estate, which can be sold after 5 years to recoup this investment.

Property values in Malta increase by about 4% annually, potentially appreciating by 20% over 5 years, helping offset program costs.?

Conversely, renting provides a quicker residency path, with agreements possible in just two weeks, compared to the longer process of buying. The cost breakdown for renting is at least €12,000 per year in central areas or €10,000 per year in the south of Malta and Gozo.

Additional fees include €7,500 to add a parent or grandparent and typical costs like notary and translation services, which can total at least €4,000, plus a minimum of €400 per person for medical insurance.

The application process involves a preliminary Due Diligence check by our Anti-Money Laundering Officer to ensure compliance and reduce rejection risks.?

Then, Immigrant Invest can guide you through gathering documents, fulfilling investment conditions, and handling all necessary legal procedures, including biometrics and final approvals.?

The whole process generally takes 6—8 months.?

Once approved, you'll receive a permanent residence card, valid for 5 years and renewable.

Main points about Maltese permanent residency, its perks and disadvantages

1. Malta offers investors a fast track to permanent residency, providing benefits such as visa-free travel in the Schengen Area, access to high-quality healthcare, and free education at state universities. The country allows investors to include family members of any age and even non-official spouses.?
2. However, the program requires a Due Diligence check with significant upfront and non-refundable fees, and investors must maintain a registered address in Malta. Family members must also be financially dependent on the investor, with documentation to prove this dependency.?
3. Those wishing to become Maltese permanent residents must have a clean criminal record, demonstrate legal funding sources, and invest at least €150,000, with options to rent or buy property, providing opportunities for returns on investment.

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