Malta Citizenship by Investment Replaced by New Naturalisation Program

Malta is full of surprises.

Did you know, for example, that Britney Spears, Bryan Adams, Oliver Reed, Meghan Markle and Jessica Chastain can all trace their roots to this picturesque island?

Mind you, that shouldn’t really be so surprising. 

After all, this small rock in the Mediterranean, home to just over 550,000 people, is renowned for its rich cultural tapestry and vibrant history.

But there’s a lot more to Malta. Its robust economy and low unemployment rates contribute to its status as one of Europe’s safest countries.

The island also offers one of the world’s most exclusive citizenship programs.

It’s not the Maltese Citizenship-by-Investment (CBI) program that previously invited high-value investors to secure citizenship by making substantial investments in government funds, sanctioned bonds or stocks and real estate. 

That program has ended, largely replaced by the Maltese Naturalisation for Exceptional Services by Direct Investment, commonly referred to as the Maltese Exceptional Investor Naturalisation (MEIN) program. 

The only program of its kind in the Schengen Area, MEIN offers individuals an attractive incentive to obtain a top-tier passport.

It’s tied for the 14th best passport in the world, based on our Nomad Capitalist Passport Index analysis and provides citizens already living in desirable parts of the world with easy access to the rest of Europe.

That being said, there are plenty more benefits to becoming a Maltese citizen that may prompt you to pursue this Maltese program. 

This complete guide to Malta citizenship by investment, according to the updated MEIN program for 2024, will guide you through everything there is to know about obtaining a Malta passport and determining whether it’s the right program for you .

Malta MEIN Program Overview

The Malta MEIN program, also known as Naturalisation for Exceptional Services by Direct Investment, is one of the most prestigious options available for high-net-worth individuals seeking a second citizenship.

Much like the previous citizenship-by-investment program Malta had, which many confused with the Malta golden visa, you must invest in Malta in a significant way to gain Maltese citizenship.

• Investment: Applicants must contribute to Malta’s Government Fund, invest in government-sanctioned bonds or stocks, and make a real estate investment. The minimum investment requirement starts at €600,000 with proof of residence for 36 months or €750,000 for a reduced residency period of 12 months.
• Processing Time: Depending on the investment amount and other criteria, citizenship can be granted in as little as 12 months.
• Key Benefits: Maltese citizenship provides access to one of the world’s strongest passports, EU citizenship, and the right to live, work and travel within the Schengen Area. Additionally, Malta offers a high quality of life, low crime rates and a robust economy.

More and more high-net-worth people are looking at ‘citizenship insurance’. This means they want to have a Plan B for themselves, their families and their businesses, giving them access to somewhere other than their original place of birth. 

Some are escaping political or financial persecution, while others are simply looking for balmy climates or ways to lower their tax burden. 

Whatever the reason, a handful of countries around the world offer citizenship programs to attract these individuals and raise capital to build their local economies. 

Benefits of Getting Maltese Citizenship

Malta stands out among countries offering citizenship programs for several reasons, such as the benefits which include:

• Unrestricted access to the European Union: Malta is a member of the European Union. That means investors who obtain Maltese citizenship are allowed to live and work anywhere in the EU. Malta is also part of the Schengen Area, meaning there are no visas or passport checks for travelling throughout the European Schengen Zone.
• Visa-free travel: The Maltese passport is one of the strongest passports in the world. Altogether, Malta passport holders can enter a total of 172 destinations – either visa free, through a visa on arrival or via electronic travel authorisation (eTA). 
• Fast-track to citizenship: Another notable benefit of the Malta MEIN is how speedy the program’s process is. You can obtain citizenship in 12 to 36 months. Bear in mind that you must be a resident of Malta to gain Maltese nationality. 

• Family-friendly passport: Under the new Maltese Exceptional Investor Naturalisation program, not only will you receive a European passport if you are granted Maltese citizenship, but so will your family. 
• Malta is tax-friendly: Malta’s tax system hinges on the twin concepts of residence and domicile. Applicants who become residents of Malta but are not domiciled in the country are only required to pay tax on any income they earn or receive in the country. This means it’s possible to obtain Maltese residence and eventual citizenship, claim non-domicile status (your domicile is in another country) and not pay full, regular taxes there. As such, Malta offers several personal tax breaks and exclusions for specific types of income. 

It’s worth noting that there is an additional donation fee of €50,000 for every dependent receiving citizenship with the principal applicant. Also, note that children born to Maltese citizens automatically receive citizenship. Therefore, your children and grandchildren will have Malta citizenship for the rest of their lives. 

Day-to-Day Life in Malta 

While tourists often overlook it in favour of other larger islands nearby, like Sicily or the Greek islands to the east, Malta is renowned for its ancient history and being a unique melting pot of cultures.

The island nation’s cuisine is influenced by Italian, Arabic and British flavours. The same influences are fused seamlessly throughout the culture and locals speak English, as it was once a British colony.

Daily life in Malta is relaxed yet modern, with beautiful landscapes, blue beaches and a year-round pleasant climate. 

The country’s strategic location in the heart of the Mediterranean allows for easy travel to Europe, North Africa and the Middle East, making it a convenient base for international business and leisure travel.

Requirements and Eligibility for Malta’s Exceptional Investor Naturalisation Program

The MEIN program, governed by the Community Malta Agency, follows similar guidelines as the previous Malta citizenship by investment requirements, at least when it comes to meeting basic criteria:

• You must be at least 18 years old.
• All adult dependents must hold a residence permit for the required periods.
• You must have health insurance and a clean criminal record. 

Financially, a minimum of €600,000 – depending on the residency status – is acceptable as a qualifying investment when applying for Malta’s MEIN program.

The investment criteria include the following requirements (you must complete each requirement listed below to qualify for citizenship):

Donation Requirements:

• Provide proof of residence in Malta for a period of 36 months, subject to an exceptional direct investment of €600,000.
• This period may be reduced by exception to a minimum of 12 months, subject to a direct investment of €750,000.
• For each extra dependent, the cost is an additional €50,000.
• The contributions are non-refundable and support, among other things, programs in public health, education, job creation and social reform.

Fund Requirements:

• Donate at least €10,000 to a recognised non-governmental organisation or society in addition to your contribution. 
• The entity you make your donation to must be a non-profit organisation.

Real Estate Requirements:

• Purchase or lease a real estate property with a minimum value of €700,000 or pay a minimum annual rent of €16,000. 
• You must keep the property you bought or rented for at least five years after receiving your citizenship certificate.

These requirements ensure that applicants contribute significantly to Malta’s development while demonstrating genuine ties to the country.

Malta Citizenship by Investment Process: How to Apply for the Maltese Exceptional Investor Naturalisation Program

The application for the Malta MEIN program must be filed using the required forms and include all the necessary fees and papers. 

Overall, the timeline on the new MEIN requirements (which largely replaced Malta citizenship by investment), will vary depending on your investment and other documents submitted.

This is because the due diligence procedure is quite strict and thorough and, if you submit fraudulent information, you will be refused citizenship. Application process details include:

• Timeline: The MEIN application generally takes between a minimum of 12 months to process. Once you’ve received your approval letter for eligibility, you’ll begin the Malta citizenship procedure. 
• Legal Representation: You can hire a lawyer and give them power of attorney to act as your legal representative or agent, and this will stay in effect until the operation is complete.
• Due Diligence: As is customary, the Community Malta Agency (CMA) conducts due diligence to ensure the citizenship application is completed correctly. 

Additional papers and information may be requested. The CMA then applies to the Minister, who determines whether the applicants are entitled to seek Maltese citizenship.

Due Diligence

As mentioned, the Community Malta Agency performs rigorous due diligence to ensure that applicants meet all requirements and that their capital is lawfully obtained. 

This process, enhanced under the new Malta citizenship program, includes comprehensive background checks and the verification of authentic documents such as:

• Criminal records
• Financial statements
• Proof of primary wealth.

Malta’s due diligence is considered the gold standard among similar programs.

Each application undergoes four levels of due diligence and even the tiniest suspicion on the part of the agency might result in rejection of the application.

The levels are as follows:

• Tier 1: The submitting agent conducts initial due diligence, including filing citizenship eligibility forms and birth and marriage certificates.
• Tier 2: Additional validation ensures the application is complete, requiring extra documentation if necessary.
• Tier 3 & 4: Anti-money laundering professionals conduct detailed checks, including global database screenings, to ensure compliance with international sanctions and denied-person lists.

Once the due diligence is complete, your application will undergo the following process:

• The collected information is compiled and reviewed by a risk assessor.
• A recommendation is made to either accept or reject the application.
• The attorney/agent submits the Maltese citizenship application to the CMA based on your level of payment.
• The due diligence is updated and the application is delivered to the Minister, who will decide whether you are eligible for citizenship.
• If you meet the investment and residency conditions, you are invited to swear the Oath of Allegiance in Malta.
• Finally, you’ll get a Malta passport and a Certificate of Naturalisation. However, the Community Malta Agency conducts continual monitoring for five years after you have obtained citizenship.

Taxation in Malta

Malta’s taxation system is based on domicile, not residency or citizenship status. Here’s what’s most important to know about that:

• If you live in Malta for less than 183 days, you are not automatically considered a tax resident and, therefore, only pay tax on income earned in Malta. 
• However, if you regularly spend a longer time in Malta – even if less than 183 days a year – and establish personal and economic ties in the country, you may be considered a resident for tax purposes.

As an individual, however, you can never be without a domicile.

Generally, you’re considered to have a domicile of origin in the land of your nationality and the country where you’ve spent the most significant part of your life.  

So if you aren’t domiciled in Malta, even as someone with citizenship, then only income and capital gains generated from activities inside Malta are fully taxable.

Income generated outside of Malta and not sent to Malta is not taxable. In addition, capital gains generated outside of Malta, even if brought into Malta, are not taxable for non-domiciled residents. 

Alternatives to the Maltese Exceptional Investor Naturalisation Program

If you don’t qualify for the new Malta MEIN program (or aren’t interested in a Malta passport), the Malta Permanent Residency Program (MPRP) offers a more affordable and less rigorous pathway for individuals seeking to enjoy the benefits of living in Malta without committing to the full investment required for citizenship.

Here are the requirements for the Malta Permanent Residency Program:

• Investment: Applicants must invest in real estate with a minimum value of €300,000 (South Malta/Gozo) or €350,000 (rest of Malta). Alternatively, you can rent a property with a minimum annual lease of €10,000 (South Malta/Gozo) or €12,000 (rest of Malta).
• Government Contribution: A non-refundable contribution of €28,000 if purchasing property or €58,000 if renting.
• Donation: A €2,000 donation to a Maltese NGO.
• Proof of Financial Stability: Demonstrate capital assets that total at least €500,000 (a minimum of €150,000 of which must be financial assets).

There is a one-time, non-refundable €40,000 administrative fee for this program. However, if you are approved, you can enjoy the following benefits:

• The MPRP requires a lower financial commitment compared to the other investment programs.
• More straightforward requirements and a more streamlined application process.
• Enjoy many benefits of Maltese residency, including access to the Schengen Area.

Do note, however, that permanent residency does not confer EU citizenship, meaning you won’t have access to the full range of benefits, such as voting rights or expanded travel freedoms within the EU.

Residency permits may need renewal and continued compliance with program requirements.

If your primary goal is to obtain a powerful passport and full EU citizenship privileges, the MEIN program remains the superior choice.

Malta Citizenship by Investment Replaced by New Naturalisation Program: FAQs

Is Malta Right for You?

Unfortunately, there is no straightforward answer.

Determining whether the Maltese Exceptional Investor Naturalisation program is right for you depends on your personal circumstances and financial goals. 

However, the Maltese passport offers numerous privileges that make it an attractive option for many.

The ability to live, work, and travel throughout the Schengen Area significantly enhances global mobility and opens new business opportunities.

While Malta’s MEIN program comes with higher costs compared to other options, the benefits often outweigh the investment for those seeking a secure, prestigious and strategically valuable second citizenship.

You’ll need to be a resident of Malta for at least one year after obtaining your residency card, though full-time living is not required. This flexibility allows you to maintain your lifestyle while fulfilling the program’s requirements.

Our suggestion is to consider how obtaining a Maltese passport aligns with your long-term plans.

It offers invaluable advantages, such as visa-free travel across Europe, which is particularly beneficial for frequent travellers, entrepreneurs and those looking for a reliable Plan B.

The Nomad Capitalist team brings decades of personal and professional experience to help you navigate the complexities of the Maltese MEIN program. Partner with us to create a tailored strategy that secures your wealth and happiness now and in the future.