How have Malta’s residency schemes changed over recent years?

Malta’s tax residency schemes have evolved over the years to adapt to international standards, economic needs and policy changes. Originally designed to attract foreign investment and individuals by offering favourable tax rates, these schemes have faced pressure from the EU and international bodies like the OECD to prevent tax evasion and aggressive tax planning. This has led to greater transparency and stricter compliance requirements, with changes including adjustments to tax rates, residency requirements and investment thresholds.

Recently, Malta has focused on attracting digital nomads and remote workers, introducing initiatives that cater to this growing segment. These changes reflect Malta’s ongoing efforts to balance attracting foreign investment with meeting international regulatory standards.

How can prospective applicants start their enquiries and how does Promethean assist in this regard?

To begin enquiries about obtaining Malta residence or citizenship, prospective applicants typically follow a structured process. They can start by scheduling an initial consultation to discuss their goals, eligibility and the different options available for obtaining residence or citizenship in Malta.

Promethean also provides guidance on the necessary documentation for the application, assisting with the preparation of paperwork and ensuring that all documents meet the legal requirements of the Maltese Government. Once residency or citizenship is granted, Promethean can assist with settling in Malta, including finding housing, opening bank accounts and other relocation services.

“It’s crucial to research and choose the residency programme that best aligns with your financial situation, lifestyle preferences and long-term goals.”

What, in your view, is the potential impact of the EU’s proceedings against Malta’s citizenship by investment (CBI) scheme, and what are your thoughts on the Advocate General’s recent Opinion in this regard?

Advocate General Gerard Hogan delivered his Opinion on 4th October 2024, supporting the CBI programme, which allows foreign investors to obtain Maltese and EU citizenship through substantial financial contributions after rigorous due diligence checks. Advocate General Hogan emphasised that member states have the right to define their own nationality laws, recognising Malta’s sovereignty and its legal authority to implement such programmes as long as they comply with EU law. This is a positive reflection on Malta’s rights and authority to control its citizenship policies. The Advocate General did not find any clear breach of EU law in Malta’s CBI programme. He pointed out that Malta has taken steps to ensure the integrity of its programme and rejected the view that citizenship granted in exchange for investment undermines the values of Union citizenship.

If the Court follows this Opinion in its final ruling, expected in early 2025, it will have significant positive implications for Malta. The Advocate General’s support indicates that Malta’s CBI programme can continue with minimal disruption, as long as it adheres to guidelines ensuring transparency and a genuine connection between applicants and the country.

What one key piece of advice would you give prospective applicants to Malta’s residency programmes?

One key piece of advice for prospective applicants is to thoroughly understand the specific requirements and benefits of each programme. Malta offers various residency schemes, each with different criteria, investment requirements and tax implications. It’s crucial to research and choose the residency programme that best aligns with your financial situation, lifestyle preferences and long-term goals. Consulting with a licensed agent like Promethean can provide valuable insights and help ensure a smooth application process.

Image credit: Bernard Polidano