New MPR Program and Reduced Stamp Duty on Purchased Property in Malta
After the renowned Malta Residency Visa Program (MRVP) phased out at the end of March, it has been replaced by a new residency by investment program, the details of which were announced earlier. Entitled the Malta Permanent Residency Program (MPRP), it allows non-EU nationals and their families to live, work and study in Malta in exchange for a number of investments and provides an opportunity to obtain Maltese — and consequently the EU’s — citizenship in several years.
To qualify for Maltese residency, applicants are required to make a range of investments: a contribution to the government fund, a charitable donation, and investment in real estate. The amount of contribution into the government fund depends on whether the applicant has chosen to purchase a property or rent it. The minimum contribution amount is €68,000 for those who opt to buy a property and €98,000 for those who prefer leasing.
In terms of real estate investment, applicants must rent a property for a minimum annual cost of €10,000 if it is located in the southern part of Malta or Gozo, or €12,000 in case it is located in any other part of Malta. Alternatively, investors may opt to purchase a property with a minimum value of €300,000 in the south of Malta or Gozo, or €350,000 located in any other part of the country. The investment has to be maintained for a period of at least five years.
It is important to mention that when buying real estate investors would have to pay additionally stamp duty at the rate of 5% of the property price. However, the government of Malta has introduced a limited-time offer, reducing the stamp duty rate to 1.5% for the first €400,000 spent. To take advantage of this offer, an applicant has to give their consent to purchasing the property until 1 June 2021 and sign a corresponding contract until 1 December 2021.
Under the MPRP, applicants are also required to donate €2,000 into a local registered philanthropic, cultural, sport, scientific, animal welfare or artistic non-governmental organisation registered with the Commissioner for Voluntary Organisations.
Besides, investors must be “in receipt of stable and regular financial resources, sufficient to maintain themselves and their dependants, without recourse to the social assistance system of Malta”, and have assets valued not less than €500,000, provided that at least €150,000 of them are in the form of financial assets.
The new Malta Permanent Residency Program has been in operation for around a month and already gained success among investors. It offers multiple benefits to residence permit holders, such as high living standards, mild and warm Mediterranean climate, tax efficiency, favourable business environment, freedom of movement within the Schengen Area, the opportunity to travel visa-free around the European Union, and many others. Moreover, it provides the possibility to apply for citizenship of Malta and therefore the EU in several years of residence.
The MPR program of Malta is not the only investor immigration program offered by Malta. In fact, this tiny EU country has the most choice for HNWI immigration. Should you wish to get your Maltese citizenship fast (in one or three years of residency) we recommend you consider the new citizenship by investment program of Malta. If you wish to become a Maltese tax resident and benefit from Malta’s favourable tax regime, we suggest you consider the Global Residence Program of Malta.
Are you interested in a residency status in Malta with all benefits that come with it? Get in touch with GLS Private Office, and we will be happy to answer your questions and guide you towards the coveted residence permit.
* AKM Licence Number: AKM-AGEN-21