10 benefits and 5 disadvantages of Malta permanent residency

Malta’s Permanent Residence Program allows non-EU foreigners to obtain a life-long residence status in the country by investment. It is faster and hassle-free, compared to other ways to secure permanent residence in the country. However, the program does come with some limitations. Let’s carefully consider all the pros and cons, and requirements.

10 benefits of Malta permanent residence program

1. Fast route to permanent residency. Investors in Malta can obtain permanent residence in 6—8 months. In most other countries that status can be obtained in 5+ years —?for example, that is the case in Portugal and Italy.?

2. Lifelong residency status. Unlike many EU investment programs that issue temporary permits requiring renewal, Malta grants permanent residency that lasts a lifetime.?

Most other similar initiatives in Europe allow obtaining a temporary residence permit, which has to be renewed one or two times before the investor becomes eligible for a permanent status.?

3. Investment after approval. The investment is made only after successful Due Diligence and approval —?applicants are not required to contribute before they are sure they will be granted residence.?

4. Family inclusivity. The program allows family members of any age to be included. Unofficial spouses are also eligible, unlike Portugal’s program, which has an age cap of 26 years for dependent children.

5. No residency requirement. Applicants are not required to permanently reside in Malta to maintain their residency status.

6. Business and investment opportunities. Permanent residency opens doors to European business markets and allows profitable real estate investments. Property owners in Malta can earn annual rental returns of 5–15%, making it an attractive long-term investment.

7. Visa-free Schengen travel. Maltese permanent residents can travel visa-free within the Schengen Area for up to 90 days in any 180-day period.

8. Access premium-quality to healthcare. Residents gain access to Malta’s healthcare system, which ranks higher than in many advanced countries, including the USA and Israel.

9. Educational benefits. Residency provides access to state universities in Malta, where education is free. Students can also benefit from financial aid, scholarships, and tax deductions for outstanding performance.

10. Residency privileges. Permanent residents enjoy the freedom to live in Malta without time limits. They may also choose to visit occasionally without jeopardising their residency.

5 drawbacks of the Malta Permanent Residence program

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

2. Financial dependency requirement. Family members, including children, parents, and grandparents, must be financially dependent on the investor. Documentation proving this dependency is required, and dependents are not permitted to work.

3. Address requirement. To maintain residency, a registered address in Malta is necessary. Applicants can either rent or own property, with the flexibility to change the address by submitting updated property agreements.

4. Housing costs. Investors face significant housing expenses:

• Non-refundable rental costs accumulate to over €70,000 during the first 5 years.
• Alternatively, purchasing property allows for potential rental income and future resale value.

5. Non-refundable fees. The program includes several fees:

• €50,000 administrative fee;
• Government fund contribution of €30,000 for property buyers or €60,000 for renters;
• €2,000 donation to a non-government organisation.

These costs total up to €82,000 for property buyers or €112,000 for renters over five years.

How to obtain Malta permanent residence by investment?

Eligibility requirements. Applicants must:

• Be over 18 years old;
• Have a clean criminal record;
• Have no visa denials from countries with visa agreements with Malta;
• Demonstrate legal sources of investment funds;
• Possess capital of at least €500,000, including €150,000 in liquid assets.

Investment requirements. Applicants fulfill multiple investment conditions: rent or buy real estate, pay administrative and government fees, and make a charitable donation.?

If an investor rents real estate, the yearly cost should be at least €15,000 and the rent contract should be for at least 5 years. The contribution to a government fund should be at least €60,000. The administrative fee is €50,000 and the required charitable donation is €2,000.?

In case of real estate purchase the minimum price of property is €375,000. The contribution to the fund in that case is lower —?€30,000. The administrative fee is €50,000 and the required charitable donation is €2,000.?

Aside from the investment itself, applicants pay additional fees for including family members in the application and associated costs for document processing.?

Additional fees include:

• €5,000 for each applicant;
• €4,000 for notary and translation services;
• At least €400 per person for medical insurance.

Key takeaways on pros and cons of Malta’s permanent residence by investment

1. Malta offers visa-free Schengen travel, access to top-tier healthcare, free education, and the inclusion of family members, including non-official spouses.
2. Applicants must invest at least €150,000 in liquid assets and meet housing requirements through renting or buying property, with potential returns on investment.
3. Due Diligence checks, non-refundable fees, and maintaining a registered address are mandatory, with family members needing proof of financial dependency.

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