Comparison of Passport Programs in Cyprus, Malta, and Greece

Cyprus or Malta: Which Citizenship Program to Choose?

Malta or Cyprus? This is a question many of our clients frequently ask. Both countries are attractive for business opportunities, and both island nations offer a pleasant climate and excellent conditions for leisure. Malta and Cyprus have good infrastructure, low crime rates, and decent healthcare. So, which one should you choose? In this article, we provide a comparative analysis to help you make an informed decision.

Investment Requirements

• Malta: The program requires a comprehensive investment:

  • A contribution to a fund (€650,000) and the purchase of government bonds (€150,000).
  • Purchase or rental of property (€350,000 or €16,000 per year).

  The total minimum investment required is €816,000. Additional costs include due diligence fees, taxes, and application fees.

• Cyprus: Here, there are three options:

  • €2 million in residential property.
  • €2 million in commercial real estate + €500,000 in a home.
  • €2 million in Cypriot company securities + €500,000 in a home.

Processing Times

• Malta: The Maltese passport is issued in 12-14 months due to thorough due diligence checks. These detailed checks make the program highly valued internationally.

• Cyprus: The Cypriot passport is granted within six months, making it one of the fastest citizenship programs in Europe.

Number of Visa-Free Countries

This is a crucial aspect, especially for businesspeople who travel frequently.

• Malta: With a Maltese passport, you can visit 183 countries visa-free or with a visa on arrival.

• Cyprus: The Cypriot passport grants access to 173 countries, including EU member states and the UK.

Tax Systems

• Malta: Obtaining citizenship does not automatically make you a tax resident. To become a tax resident, you must reside in Malta for at least 183 days a year. Tax residents do not pay taxes on foreign income unless it is transferred to Malta. They also pay capital gains tax on foreign sources, regardless of whether they are transferred or not.

Malta has tax treaties with over 60 countries, offering various tax benefits under the MRVP scheme, including a 15% tax on remitted income.

• Cyprus: Cyprus is a tax haven, with a corporate tax rate of just 12.5%, one of the lowest in Europe. Non-residents are only taxed on income generated within Cyprus, and there are exemptions for certain types of taxes.

Economy

Both Malta and Cyprus have stable economic conditions. Malta, thanks to sound government policies, weathered the financial crisis well and remains resilient. Cyprus experienced a financial crisis in 2013 due to currency fluctuations, but has since recovered and shows positive growth.

Safety

Both Malta and Cyprus are relatively safe, with low crime rates and a peaceful atmosphere.

Education

Both Malta and Cyprus offer decent educational opportunities. Malta, in particular, offers British-style education in a sunny, Mediterranean environment. Malta's top institutions include the University of Malta and the Institute of Tourism Studies (ITIS).

Cypriot universities are relatively young, mostly established in the 2000s, but have already gained recognition in rankings of top young institutions.

Conclusion

The choice depends on your financial capacity and priorities. Malta offers a less expensive passport but with a longer waiting time due to stringent due diligence. Cyprus provides a quicker route to citizenship, though at a higher cost, and with a less rigorous background check. Do you prioritize reliability or speed? How much are you willing to invest? The decision is yours, and we are happy to consult and guide you.

Cyprus vs. Greece: Which Citizenship Program to Choose?

In 2020, Greece introduced a new citizenship-by-investment program, competing with Cyprus' well-established program. What are the differences between these programs, and which one is better for potential investors? Let’s compare their strengths and weaknesses.

Comparative Statistics

To make this analysis more objective, let's create a table highlighting the key figures and facts of both neighboring countries' programs:

Analysis of Both Programs

At first glance, these programs appear quite similar, which makes sense given that Greece based its program on its experienced neighbor. It’s worth noting that while Cyprus has been running its program since 2013, Greece's program is new and hasn't yet been fully implemented.

• Schengen Area Membership: One significant difference is Greece's inclusion in the Schengen Area, allowing passport holders to visit 184 countries visa-free, compared to 173 for Cyprus. This boosts Greece's passport ranking to 7th globally, while Cyprus is ranked 16th.

• Investment Options: Greece allows only real estate investments, emphasizing the development of its construction and tourism sectors. Cyprus offers more variety, including real estate, government bonds, and shipping investments, providing greater flexibility for investors.

• Investment Refunds: Both programs offer the possibility to recover your investment after five years. However, Cyprus requires a non-refundable €150,000 fee, while Greece has no such requirement. Greek real estate is also more affordable and liquid compared to Cyprus.

Conclusion

Greece’s new program seems more attractive due to its liberal policies and investment flexibility. However, it’s important to note that competition between these neighboring countries is heating up, and both have introduced quotas for applicants. While Greece’s program offers advantages, only time will tell how well it performs in the long run.