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Malta Residence and Visa Programme New Rules as of End of March 2021 – Same Benefits
New rules come into effect at the end of March 2021. There is still time to apply under current rules, if you wish to do so, through an approved agent such as Dixcart Malta.
What are the Key Defining Features of the Malta Residence and Visa Programme?
The Malta Visa and Residence Programme (MRVP), is open to all third country, non-EEA and non-Swiss nationals, with a stable income and sufficient financial resources.
As soon as the current agency, ‘Identity Malta’ accepts an application, the relevant applicants receive an ‘eResidence’ card, that entitles them to live in Malta and to travel visa free throughout Schengen Member States.
Features that set the MRVP apart from other programmes, include:
- There is no language test to obtain permanent residence
- Dependant children, regardless of age, can be included in the application, as long as they are unmarried
- Dependant parents and grandparents may also be included in the application
- Grandchildren may also be included, effectively allowing 4 generations to be included in one application.
Changes to MRVP – New Rules and Requirements as of 29 March 2021
New rules were recently announced regarding the MRVP, and a new agency; ‘Residency Malta’ was established to manage the applications.
Under the new regulations, the requirement to invest €250,000 in government bonds has been removed, whilst a small mandatory donation to a Maltese registered non-governmental organisation (NGO), has been introduced. There have also been changes to the wealth requirements.
An individual will need to make an investment consisting of the following:
- Physical Address in Malta
- Purchase a property with a minimum value of €350,000, or
- Rent a property, with a minimum rental cost of €12,000 per annum.
- Make one-off contributions, as follows:
- €98,000 – if the applicant rents a property, or
- €68,000 – if the applicant buys a qualifying property and
- An extra €7,500 per additional adult dependant (where applicable). This applies whether the applicant is buying or renting a property.
- Donate a minimum amount of €2,000 to an NGO.
- Application fee €10,000
- Due within one month of the application submission
- Letter of approval €30,000
- Due within two months of the application submission
- 8 months to provide all due diligence and the remainder of the €68,000 or €98,000, to be paid.
The main applicant should have at least €500,000 of net assets to qualify for the programme, and €150,000 of this €500,000 must consist of financial assets. The assets, however, only have to be maintained for the first 5 years.
Finally, health insurance will now only need to cover Malta and not the entire EU. This change should result in an annual reduction in the insurance premium.
Rules up to 29 March 2021
Up until the 29 March 2021, the existing rules that are in place, remain relevant. These are detailed below.
An individual must make a three-tier investment:
- A €30,000 payment to the Maltese Government
- Investment of a minimum €250,000 in eligible Maltese Government stocks, shares or debentures, which must be maintained for a minimum of 5 years (a finance option of €65,000 is available, where applicants will receive the required Government Bonds for 5 years for a one-off fee of €65,000)
- Physical Address in Malta
- Purchase of a property in Malta for a minimum value of €320,000 (€270,000 if the property is situated in Gozo or the south of Malta), or
- Rental of a property for a minimum of €12,000 per annum in Malta (€10,000 per annum if the property is situated in Gozo or the south of Malta).
- The property must be owned or rented for a minimum of 5 years.
Parents and/or grandparents and/or grandchildren of the main applicant or the main applicant’s spouse can apply to the programme, at the application stage. An additional €5,000 payment per person is required.
Children born or adopted by the main applicant after the initial application approval date can be included.
Applicants must be able to prove; either an annual minimum income of €100,000 arising outside of Malta, or ownership of a minimum €500,000, of capital assets.
The above is required for all applications submitted before 29 March 2021. From then on, the MRVP programme will be replaced with the new programme.
Remittance Basis of Taxation
Individuals taking advantage of either of the above programmes will be taxed on Malta source income and certain gains arising in Malta.
Individuals will not be taxed on non-Malta source income not remitted to Malta.
In addition individuals will not be taxed on capital gains, even if this income is remitted to Malta.
There is an annual minimum tax of €5,000 per annum, for individuals that are Malta tax resident.
How Dixcart Can Help?
Individuals interested in applying for the MRV programme must do so through a registered approved agent. Dixcart is an approved agent, and offers a bespoke service to guide clients, every step of the way, through the MRVP process.
If you would like further information regarding MRVP in Malta, please speak to Jonathan Vassallo: firstname.lastname@example.org, at the Dixcart office in Malta or to your usual Dixcart contact.