Malta citizenship: all pros and cons

11 benefits of becoming a Maltese citizen

1. Moving to Malta or another EU country. Investors gain the right to reside in Malta, enjoy its high quality of life, and move freely within the EU without a visa, staying as long as desired. 

2. The right to come to Malta anytime. Investors can enter Malta when they wish, even if borders are closed to foreigners. This right is crucial during political or economic instability in your home country.

3. Various visa-free destinations. Maltese residents enjoy visa-free travel across the Schengen Area. But Maltese passport holders can freely visit over 160 countries, including the UK, Australia, Japan, Canada, and the USA.

4. Career and business opportunities. Maltese citizens can work or start a business in any EU member country without special permits.

5. Profitable investment in Maltese real estate. To obtain citizenship, applicants must invest in Maltese real estate. Purchasing property at €700,000 can be profitable, as investors can sell after five years and potentially benefit from property value growth of 3—5% annually. Rental income in prestigious areas can yield about 5% per annum.

Alternatively, investors can rent a property for €80,000 over 5 years, a more affordable option though non-refundable. Renting takes a few weeks, whereas purchasing takes three months. After 5 years, investors can freely buy or rent any property in Malta without value restrictions.

6. Beneficial tax regime. While Malta offers no specific tax incentives, its tax system is often more favourable than that of investors' home countries. Shareholders of Maltese companies, for example, can reclaim up to 100% of corporate tax.

7. Citizenship for the whole family. Investors gaining Maltese citizenship through exceptional services can include close family members in their application. Eligible members include spouses or registered partners, including same-sex partners, unmarried dependent children under 29, and parents or grandparents over 55.

8. Education prospects. Children of Maltese citizens can study in schools and universities across the EU without student visas, often at significantly lower tuition fees. For instance, in Portugal, Maltese citizens aren’t charged for education.

9. Maltese passport holders access top-tier healthcare, with the country ranking among the top 30 globally, surpassing the USA and Israel. 

Thanks to the European Health Insurance Card, Maltese citizens can also receive medical treatment across the EU, Iceland, Liechtenstein, Norway, Switzerland, and the UK under the same conditions as local residents.

10. Malta is among the safest countries, ranking in the top 20 globally. Factors include low crime rates, minimal natural disasters, and excellent healthcare. It is safer than Denmark, Ireland, and the Netherlands, with police-reported crimes nearly half the European average. 

According to the Global Wealth Migration Review, Malta is the safest in Europe and the second safest for women worldwide.

11. Eco-friendly environment. Malta is a leader in the European New Bauhaus initiative, promoting sustainable living. The government’s green economy strategies include advanced wastewater treatment, resulting in high-quality seawater and Blue Flag-awarded beaches.

Disadvantages of Malta citizenship

The three major cons are long waiting time, higher costs and their non-returnable nature.

Investors must wait at least 14 months for Malta citizenship, but they receive a residency card in two weeks, allowing Schengen Area travel without a visa. This also starts the citizenship countdown.

The expenses of obtaining Malta citizenship are around €1 million for a family. However, the investment is made only after citizenship approval, unlike Austria, where a €10 million investment is required with no guaranteed result after two to three years.

Non-refundable investments. Most of the citizenship investment, including contributions to state funds and charitable donations, amounting to about €760,000, is non-refundable. 

How to obtain Malta citizenship: terms for investors

Since 2020, Maltese legislation has enabled wealthy individuals and their families to apply for citizenship by naturalisation for exceptional services through direct investment.

Applicants must be over 18, have a legal income, not be under sanctions, have no criminal record, and not have had visa denials from countries with which Malta has visa waiver agreements.

The application can include the investor's spouse, children, parents, and grandparents. 

Procedure. Investors first become residents for 1 to 3 years before they can apply for citizenship. The investment amount varies with the residency period—shorter periods require higher investments.

Key steps include maintaining a residence permit, passing the Eligibility Test to assess professional, personal, and financial history, and fulfilling all investment conditions.

Investment requirements. An investor must meet 3 investment conditions for Malta citizenship:

1. National Development and Social Fund Contribution: Investors applying for citizenship after 12 months of residency must contribute €750,000. This reduces to €600,000 if applied for after 3 years. An additional €50,000 is required for each family member.
2. Charitable Donation: A fixed €10,000 must be donated to a chosen NGO in charity, culture, sports, or science. This amount is consistent regardless of residency duration or family size.
3. Real Estate Investment: Purchasing property must involve a minimum of €700,000, while renting should cost at least €16,000 annually, maintained for the first 5 years of citizenship.

Additional costs include the Eligibility Test and other government fees, with the Eligibility Test costing €15,000 for the main applicant and €10,000 for each relative over 12. If the funds are sponsored, the sponsor also undergoes a €15,000 check.

Takeaways on pros and cons of Malta citizenship

1. Malta citizenship grants visa-free travel to over 160 countries, EU residency, and access to top-tier healthcare and education.
2. The disadvantages for investors include high costs, strict Due Diligence, and mandatory period of holding a residence permit.
3. Citizenship is accessible through contributions to a development fund, real estate investments, and charitable donations, which benefit Malta's growth and can bring profits to the investor.

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