Malta (EU) Immigration by Investment

Immigration by Investment Blog

The following are a collection of blog posts, addressing the various inquiries, comments, or concerns we have received from our clients.

We hope you find these useful in answering some questions that might also be on your mind. 

Question: What is the cheapest/fastest/easiest way to get a second citizenship?

Answer: The answer to this question depends on three critical factors that are unique for each applicant: 1) the geographic location you prefer, 2) your desired time-frame, and 3) your budget.

1) Geographic Location. There are three global regions from which to choose: Europe (several EU countries), the Americas (Canada or the United States), and the Caribbean. What is your primary reason for obtaining an alternative (or second) citizenship? Will you engage in business in the new country? Are you planning to retire there? Is the goal to provide your children with a better education? Or is the second passport meant as a safety net should the situation at home become unsustainable?

2) Speed of Application Processing. The second major factor in deciding on a citizenship program is the time it takes to actually obtain the new passport. In Europe, the low cost option of Bulgaria requires 18 months. Too long? The Cyprus program can be as fast as 90 days, but it's also one of the most expensive choices. The very popular vacation/retirement countries of Portugal and Spain require six and 10 years in residency status before citizenship can be applied for. Do you have that much time?

3) Budget. The major stumbling block for many potential applicants is the minimum investment amount which is set by the governments of the host country. This should come as no surprise as these immigration by investment programs seek to attract high net worth individuals with the financial means to boost the host country’s economy. In general, the lower the investment amount, the longer the time it takes to attain citizenship. Example: while a Euro 250,000 investment in Bulgaria can lead to EU citizenship in about 18 months, a Euro 2 million investment into Cyprus can result in EU citizenship as fast as 90 days.

In summary, the program that is right for you depends on your own prioritization of the above factors. Please visit our website at www.global-residency.com for detailed program information and application/eligibility requirements.
 

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Question: Why are citizenship by investment programs becoming increasingly popular?

Answer: More and more international business executives, investors, VIPs, public figures, celebrities, and other important persons who are active worldwide consider an alternative citizenship and passport of the European Union (or America / Canada / Caribbean) a powerful tool for international tax planning, to improve their quality of life, or to create a safety net should the living conditions at home become unbearable.

The following list illustrates the major benefits of these programs, using Malta as an example:

• EU Citizenship extends to the applicant and family members

• Visa free travel to over 160 countries, including the USA

• Live, work or study in any of the EU countries

• A better quality of life for the family, including better healthcare and an unpolluted environment

• A better education for the applicant’s children

• Retirement in a safe country with a warm climate

• No requirement to physically reside in the country

• Attractive tax system: no inheritance or death taxes, no estate duty, no net worth or wealth taxes, no municipal taxes, rates or real estate taxes

• Freedom associated with having multiple passports
 

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Question: May I include my family in my immigration by investment application?

Answer: The answer is “generally yes” – but different countries have issued different limitations. The following bulleted list provides a brief overview:

• Bulgaria: The main applicant may include a spouse and children of any age, and parents.

• Malta: The main applicant may include a spouse, children under 18 years of age, financially dependent adult children under the age of 27, and parents over the age of 55.

• Cyprus: The main applicant may include a spouse, children under 18, and financially dependent children under 28.

• Portugal: The main applicant may include a spouse, minor children under 18, financially dependent children over 18, and parents over 66.

• Spain: The main applicant may include a spouse, minor children under 18, financially dependent children over 18, and parents over 65.

• Canada: The main applicant may include a spouse, minor children under 19, and financially dependent children over 18. Parents and grandparents may be sponsored under a separate program.

• USA: The main applicant may include a spouse, and minor children under 21. Parents may be sponsored under a separate program.

• Caribbean: The main applicant may include a spouse, minor children under 18, and qualifying dependents over the age of 18. Specific rules apply based upon the number of dependents to be covered under a single application.

Additional details about each program are published at www.global-residency.com
 

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Question: Who can apply to these immigration by investment programs?

Answer: There are a several basic eligibility requirements an investor must meet before filing an application. These requirements apply to most programs even though each is managed independently by the issuing country’s governmental bodies. Differences do exist however, so please contact us if you require additional information about a specific program.

The most common qualifiers, aside from the investor’s ability to meet the financial investment minimums, include the following:

• Clean criminal record. Applicants are required to pass criminal background checks to prove the absence of an active criminal record in their home country and/or the country in which they plan to file an application.

• Proof of health insurance. Applicants must provide evidence of health insurance.

• Proof of economic resources. Applicants must prove they have the financial means to support themselves during the residency period.

• Not on a list of prohibited individuals. Some countries maintain lists of “undesirable individuals” whose applications would be rejected. Our associated attorneys will check any such lists prior to filing your application and advise you accordingly before you make an investment.

• Not a citizen of a restricted country. Some programs prohibit applications from citizens of certain countries. However, special considerations or exceptions might apply, so please contact us if you fall into this category.

Our associated immigration lawyers will review your eligibility to file an application and advise you of the expected probability of success before submitting any paperwork. The goal is to ensure that you are not making any investment under an application that might be rejected due to issues that are preventable – such as incomplete documentation or your not meeting one of the minimum qualifiers listed above.  
 

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Question: How quickly can I get a second citizenship? What is the fastest program?

Answer: Of the various citizenship by investment programs in Europe Bulgaria, Malta and Cyprus offer fast processing. In the Americas, the fastest options include the programs offered by the Caribbean nations.

In Malta, the residency process can be as fast as 90 days, whereas the citizenship process can be completed in as little as 180 days (six months) provided that the applicant has already fulfilled his/her one year residency requirement. This residency requirement does not mean the applicant has to live in Malta for 12 months; it is sufficient to demonstrate a genuine link with the country. Please contact us if you need additional information about how to establish a genuine link.

In Cyprus, the application process is even faster. Provided the applicant chooses the real estate investment option, citizenship can be granted in as little as 90 days (three months) from start of the application.

Bulgaria offers the applicant several investment options starting at EUR 210,000 for European citizenship and passport after five years in residency status. The "fast track option" starts at EUR 250,000 and shortens this period to only 18 months, which makes this program one of the fastest programs in Europe.

Other EU countries, such as Portugal and Spain, require an applicant to remain in permanent resident status for several years (six years in Portugal, ten years in Spain) before citizenship may be applied for.

The Caribbean nation of Antigua & Barbuda processes citizenship applications as fast as five to six months, whereas St. Kitts & Nevis require slightly longer at nine to ten months. Please contact us if you are interested in Grenada.

The United States is severely backlogged which means EB-5 applications can take between one to two years to process. Then, after two years in "conditional green card" status, the applicant may obtain a "permanent green card". After five years in permanent green card status, or eight to nine years from EB-5 application start, the investor may file for citizenship.
 

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Question: What’s the minimum investment required to obtain EU citizenship?

Answer: Out of the four most popular programs (Malta, Cyprus, Portugal and Spain), both Portugal and Spain currently offer the lowest cost options: EUR 350,000 (Portugal), or EUR 500,000 (Spain) invested in real estate qualifies the investor (among other factors such as a clean criminal record, proof of health insurance, etc.) to apply for citizenship in the EU.

However, both programs take a long time - the waiting period, i.e. the time you must be in permanent resident status before you are allowed to file for citizenship, is six years in Portugal, and 10 years in Spain.

For investors who do not want to wait several years but wish to obtain citizenship expeditiously both Malta and Cyprus are popular options. The minimum cash outlay in Malta is EUR 880,000 with a time frame of 6 to 24 months to citizenship, whereas the minimum investment in Cyprus is EUR 2,0 million and the application process can be completed in as little as three months.
 

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Why do some citizenship by investment programs require a non-refundable "contribution", meaning a donation to the country? Who actually receives these funds? Are these funds returned to me after a certain number of years?

Answer: Some of the popular immigration by investment programs ask investors for a non-refundable “contribution” (donation of funds) to their country. In all cases these funds go directly to the government which then allocates these funds to various economic development initiatives.

In the case of the Malta Individual Investor Program leading to Maltese (EU) citizenship this contribution is mandatory.

In the Caribbean, on the other hand, this contribution is optional, meaning applicants may or may not select an investment option that contains a contribution component. The purpose of offering a contribution option is to offer investors with limited funds an alternative route to applying for Caribbean residency/citizenship.

Lastly, contributions are not investment vehicles; they do not earn interest, and they are not returned to the investor after a certain number of years.  
 

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Question: What are the tax implications for me? How will new citizens be taxed?

Answer: Taxation in Malta is based on domicile and residence – not citizenship. Obtaining Maltese citizenship does not automatically cause the applicant to acquire a new domicile. Becoming a citizen of Malta does not have to have any tax consequences!

Tax residents of Malta who are not domiciled in Malta are taxable only on a remittance basis. This means they are not taxable on foreign source income (income not received in Malta), nor on any capital gains arising outside Malta. Tax is due only on income and capital gains arising in Malta. Additional tax advantages include no inheritance or death taxes, no estate duties, no high net worth or wealth taxes, no municipal taxes and no real estate taxes.

Other countries follow similar rules. Please contact us for up-to-date information on the taxation rules and regulations of the country in which you are interested.
 

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Question: What does it mean to establish a 'genuine link' with Malta? Do I need to live in Malta for a full year to qualify for the program? What about Cyprus?

Answer: In short, the answer is: No, you do not have to live in Malta for a year to establish a genuine link.

The Maltese Citizenship Program as approved by the European Commission is based on a residency requirement and evidence of a ‘genuine link’ between the applicant and Malta. However, applicants do not need to live in the country for a full year to satisfy this requirement.

Acceptable criteria to establish a genuine connection with Malta include, for example, a minimum of two visits within the year, having a local mobile phone, donations to charity, membership of a local club or professional body, business activity, or any involvement in philanthropy.

Cyprus, on the other hand, has no residency requirements at all; there is no need to stay in the country prior to or during the application process, or after citizenship approval.
 

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Q: What is the difference between the Individual Investor Program (IIP), the Global Residence Program (GRP), and the Malta Residence and Visa Program (MRVP)?

A: The Malta Individual Investor Program (IIP) offers applicants a fast track to the European citizenship and the European passport in return for a one-time investment. For the main applicant the minimum one-time cost under the individual investor program is approximately €880,000.

As a EU citizen you are allowed to live, work, study in any of the 26 European Union countries. EU citizenship also grants you access to all investment opportunities in Malta and throughout the EU member nations, as well as visa-free travel to more than 160 countries in the world, including the USA, Canada, the Middle East, Africa, Asia, and most countries in North, Central and South America.

The Maltese Global Residence Program (GRP), on the other hand, offers residency in Malta (meaning the permission to live in Malta as long as desired), free travel to all European countries within the Schengen area, and the option to apply for a Malta work permit.

However, residency status under the GRP program needs to be renewed annually to avoid expiration. The annual expense, a minimum tax, to renew residency is approximately €15,000. Further, the applicant is required to either purchase local real estate valued at no less than €220,000 or rent a residence (house or apartment) at an annual lease of no less than €8,750.

Processing can be as fast as three months. The GRP does not lead to EU citizenship, and it does not result in receiving a European passport.

The Malta Residence and Visa Program (MRVP), also known as the "Malta Golden Visa", leads to residency (meaning the permission to live in Malta as long as desired), and the option to apply for a Malta work permit, but unlike the GRP it has no recurring minimum tax. In other words, the MRVP does not need to be renewed each year, which makes it preferable especially for long-term residents and retirees.

The MRVP program requires the purchase of a residence valued at no less than €270,000 or a lease of a residence at no less than €10,000 per year for five years. The program further requires a non-refundable one-time cash contribution of €30,000 and an investment of €250,000 in government bonds to be held for a minimum of five years. If the bonds are financed, the total investment is reduced to approximately €170,000.

This program leads to residency in as little as three months, but just like the GRP program it does not lead to the Maltese (EU) citizenship and the EU passport.
 

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Question: What is the difference between the citizenship by investment program offered by Malta and the ones offered by Cyprus, Portugal, and Spain?

Answer: The Individual Investor Program of Malta provides the applicant with European citizenship in return for a donation to the Maltese government in the amount of € 650,000 plus a € 150,000 investment in securities plus an investment in real estate. The IIP application process can take between six months and two years to complete.

The Citizenship by Investment Program of Cyprus provides the applicant with investment options starting at € 2,0 million for immediate European citizenship and passport. The entire process can be as fast as three months or less if choosing the real estate investment option.

The Golden Residence Permit program of Portugal requires an investment of € 350,000 in real estate, or the transfer of € 1 Million, or the creation of 10 new jobs in Portugal to obtain residency status. Citizenship may be applied for after six years of residency.

The Golden Visa program of Spain requires a € 500,000 minimum investment in real estate, or a € 1 Million asset transfer, or a € 2 Million securities investment, or the creation of a new government-approved business project to obtain residency status. After 10 years of residency the applicant may file for citizenship.

Popular citizenship programs outside of the EU include the EB-5 program offered by the United States as well as programs offered by the Caribbean nations of Antigua & Barbuda, St. Kitts & Nevis, and Grenada.
 

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What are some of the immigration by investment options offered by Canada?

Answer: The Canadian government has created several immigration by investment programs to attract wealthy business persons and their capital to Canada. Canada is one of the world's wealthiest nations and has one of the world's highest qualities of life. Canada closely resembles the United States in its market-oriented economic system, pattern of production, and high living standards. Full citizenship and passports are issued to the applicant and his/her family. The following are three of the most popular Canadian immigration by investment options :

1. British Columbia Provincial Nominee Program (BCPNP) Residency. Invest at least CA$200,000 outside of the greater Vancouver area (CA$400,000 inside the Vancouver metropolitan area) to establish or to purchase and expand an eligible business in the British Columbia province.

2. Federal Startup Visa Program (FSVP) Residency. Invest at least CA$200,000 into a start-up business, and invest at least CA$200,000 into a Venture Capital fund for 8-10 years. Cover expenses of approximately CA$275,000 for accounting, legal, and other fees.

3. Quebec Immigrant Investor Program (QIIP) Citizenship. Invest at least CA$800,000 into a zero interest, Quebec Government Bond, for five years.

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What’s the minimum investment required to obtain a Caribbean citizenship?

Answer: The most popular residency/citizenship by investment programs in the Caribbean include the programs of St. Kitts & Nevis, Antigua & Barbuda, and Grenada:

1. St. Kitts and Nevis
• Option #1: An investment of at least US$ 400,000 in an approved real estate project to be held for a minimum of five years, OR
• Option #2: A non-refundable contribution (donation) in the amount of at least US$ 150,000 to the country's SIDF Fund.

2. Antigua and Barbuda
• Option #1: An investment of at least US$ 400,000 in an approved real estate project to be held for a minimum of five years, OR
• Option #2: An investment of at least US$ 1,500,000 directly into an eligible business, OR
• Option #3: A non-refundable contribution (donation) in the amount of at least US$ 200,000 to the country's National Development Fund.

3. Grenada
• Option #1: A non-refundable contribution of US$ 200,000
• Option #2: A real estate investment of at least US$ 350,000

  

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Can you assist with finding and purchasing local real estate?

Answer: Yes. Our offices are associated with local, licensed real estate agencies and developers and can help you find an ideal property that fulfills the real estate investment requirement of your selected immigration by investment program.

Our long-standing professional relationships guarantee to our clients a smooth, comprehensive service that includes identifying suitable properties, providing transport for property viewings, drafting/reviewing legal contracts, and liaising with local notaries and architects as needed.

Further, when you decide on a property for purchase but cannot travel here on short notice we may arrange for a Power of Attorney to appear on your behalf and execute the signatures. This eliminates the need for your presence during the purchase process.
 

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What is wrong with the Spanish 'Golden Visa' program?

Answer: When it was first launched in October 2013, the Spanish 'Golden Visa' seemed like the ideal citizenship by investment program to establish European residency and obtain the European passport.

However, this previously positive assessment has changed. We are now recommending the immigration by investment programs of Portugal (or Malta or Cyprus) over the one offered by Spain for a number of reasons that make Spain comparatively unattractive.

These reasons include:
• 10-year residency status. It takes 10 years of residency in Spain before citizenship is granted which compares to only 6 years in Portugal, 1 year in Malta, and none (no residency requirement at all) in Cyprus.
• No dual citizenship. Spain does not allow dual citizenship except for a few countries, whereas Portugal, Malta and Cyprus have no limits on dual citizenship.
• Complicated tax laws. The tax law in Spain is extremely complicated and onerous, whereas the tax laws of Portugal, Malta and Cyprus are well-defined and investor-friendly.

Additional key advantages of the programs of Portugal, Malta and Cyprus include:
• Open access to the 26 Schengen area countries
• Excellent real estate offering and property management services
• Advanced international schools and universities
• Well-developed healthcare, both public and private systems
• High quality of life, local cuisine and wines, rich culture, mild climate and a high level of security
• Limited stay requirements
• A rapid decision process
• Potential to complete the residency process in a single visit  
 

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What is the new ‘Malta Golden Visa’ (Residence and Visa Program - MRVP)

Answer: Under a recent amendment to the Maltese Immigration Act passed in August 2015, residency in Malta (the European Union) may now be granted on an investment basis.

The Malta Residence and Visa Program (MRVP) regulations provide for affluent persons of impeccable standing and repute to receive Maltese residence on the basis of a contribution to, and investment in, Malta.

The main applicant for Malta Residence by Investment must be at least 18 years of age. Eligible dependents include the spouse or partner in a long and durable relationship, children, parents and grandparents, under certain conditions.

Investment requirements include all of the following:
• Real Estate purchase valued at no less than EUR 270,000 (or a 5-year rental contract of at least EUR 10,000); and
• A contribution to the Maltese government of EUR 30,000 due upon application approval; and
• An investment in government-approved bonds or shares (financing option available) valued at no less than EUR 250,000 to be held for at least 5 years. If the bonds are financed, the total investment is reduced to approximately €170,000.

The new MRVP program offers an attractive alternative to the already established Global Residency Program (GRP) especially for applicants considering moving to Malta permanently or retiring here. The reason is that whereas the GRP requires an annual minimum tax of EUR 15,000 the new MRVP program has no such requirement. In other words, the MRVP program demands only a one-time investment that – except for the aforementioned contribution - can be fully recovered by the applicant.  
 

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What are the new citizenship by investment options for Cyprus?

Answer: On September 13, 2016, Cyprus updated its immigration by investment program by lowering the total investment required to EUR 2,0 million, and in the process revising (and eliminating) some of the previously available investment options.

The new options are as follows:

Option #1: Residential Real Estate Investment. This option requires a minimum total investment amount of EUR 2,0 million in residential real estate and must include a permanent personal residence valued at no less than EUR 500,000. The remaining investment amount of EUR 1.5 million must be made in residential real estate, to be held for a minimum of three years. If the personal residence is valued at EUR 2,0 million or more, then no additional investment is required.

Option #2: Other Investments. This option requires a minimum total investment of EUR 2,5 million, of which EUR 500,000 must be for a permanent personal residence. The remaining investment amount of EUR 2,0 million can be made using a mix of the following, held for at least three years:

    a) Residential Real Estate (in addition to the personal residence),
    b) Commercial Real Estate,
    c) Undeveloped Land for which development plans have been prepared, or
   d) Government Securities (up to a maximum value of EUR 500,000) registered and issued in the Republic of Cyprus.
 

There is no requirement to make a donation to the local government, in contrast to many other citizenship programs worldwide. Cyprus does not require applicants to live in the country prior, during or after the application process, unlike all other EU countries with citizenship programs that impose some form of residency requirements.

Applicants are able to receive a Cypriot passport within 3 months of filing an application, being by far the fastest route to EU Citizenship.

The previous investment options, including unlimited investment in securities and cash asset transfers into the country, will remain available only during a short grace period that expires on October 31, 2016.  
 

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What are the most popular immigration by investment options leading to citizenship in the European Union?"

Answer: The following is a brief overview. Please contact us for program details.

COUNTRY: CYPRUS
Minimum Investment? € 2,0 Million
Dependents Included? Spouse + Children
Physical Residence Required? None
Application Processing Time?
Citizenship & Passport: 1 - 3 months

COUNTRY: MALTA
Minimum Investment? € 650,000 nonrefundable contribution + € 150,000 Govt. Bonds + € 16,000 Real Estate Lease
Dependents Included? Spouse + Parents + Children
Physical Residence Required? Minimal
Application Processing Time? Residence Card: 1 week Citizenship & Passport: 12 months

COUNTRY: PORTUGAL
Minimum Investment? € 350,000
Dependents Included? Spouse + Children
Physical Residence Required? Minimal
Application Processing Time? Residence Card: 2 months Citizenship & Passport: only after 6 years of residency

COUNTRY: SPAIN
Minimum Investment? € 500,000
Dependents Included? Spouse + Children
Physical Residence Required? 183 days per year, for 10 years
Application Processing Time? Residence Card: 2 months Citizenship & Passport: only after 10 years of residency   

 

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 Please contact us for a detailed cost estimate or confidential consultation.  Our associated attorneys are ready to assist you with attaining your investment objectives and answer any questions you might have about all of Malta's Residency / Citizenship by Investment programs.
 

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