Naturalization by Investment — Malta’s New Government Program

Accelerated Naturalization in Malta for Exceptional Merit Through Investments in the Country’s Economy

After the quota for passports under the Malta Individual Investor Programme (MIIP) was exhausted in November 2020, the government launched an entirely new initiative, unmatched in Europe. While obtaining citizenship may take one or three years, the Maltese passport remains highly sought after by wealthy foreigners. It is a fast track to European citizenship and a chance to significantly improve one’s life.

Journalistic investigations into violations of investment citizenship programs in EU countries, along with criticism from the European Commission, led to stricter rules for issuing Maltese passports in exchange for financial investments in the country’s economy. However, Malta could not completely abandon this profitable scheme for attracting foreign capital, especially in the context of overcoming the economic impact of the COVID-19 pandemic.

New Program for Investors

The program "Granting Maltese Citizenship by Naturalization for Exceptional Services by Direct Investment" is a response to new trends in investment citizenship, aimed at combating fraud and money laundering. The path to obtaining a Maltese passport for third-country nationals is regulated by a series of laws and regulations, enacted with input from allied bodies. Newly established service agencies and supervisory authorities aim to ensure the maximum legitimacy of the process.

Key Features of the New Program:

• The investor does not have an automatic right to obtain a Maltese passport — they can apply for citizenship no earlier than after three years or one year (with increased financial contributions) of residency in the country (permanent residency status).
• Enhanced due diligence mechanisms to ensure trustworthiness and avoid cases of fraud or money laundering.
• The program is closed to individuals connected to the following countries: Afghanistan, Chad, Eritrea, Iran, Kyrgyzstan, Libya, Myanmar, Nigeria, North Korea, Somalia, Syria, Tanzania, Venezuela, and Yemen.
• A maximum of 400 applications can be approved annually. The program will conclude after 1,500 passports have been issued.
• Family members eligible to participate with the investor include spouses, unmarried children up to 29 years old without their income, parents, and grandparents over 55 years old who are financially dependent.

"The Cost of Participation"

Investments:

• Contribution to the National Development Fund: €750,000 for citizenship within 12 months or €600,000 for citizenship within 36 months. An additional €50,000 for each family member.
• Donation to charitable organizations: €10,000.
• Purchase of real estate with no subleasing rights for at least €700,000, or rental for at least €18,000 per year (not regulated in the first year). Assets must be retained for a minimum of five years.

Additional Costs:

• Due diligence fee: €7,500 for the main applicant and €5,000 for each family member.
• Administrative fee: €5,000 for the main applicant and €1,000 for each family member.
• Health insurance: €500 per year for each participant in the program.
• Passport fee: €500 per applicant.
• Other costs: translation of documents, real estate appraisal, legal services, bank fees, and transport services.

Experts from GARANT.in can help you with a personalized cost calculation.

How long this offer remains valid depends on many factors. For now, participation in the accelerated naturalization program through investments remains one of the fastest ways to obtain European citizenship.

Malta’s Investment Program Will Remain, Says the New Prime Minister, as Regulator Appointment Moves Ahead Without Opposition.

Malta’s new Prime Minister, Robert Abela (Labour Party), stated that while he will consider reforms, the investment program for obtaining Maltese citizenship will remain in place. The opposition rejected the government’s invitation to participate in discussions on selecting a new regulator for the program.

“If changes are needed, such as more comprehensive checks, they will be made,” Prime Minister Abela said on Friday. “But, fundamentally, this program has brought significant benefits to the country, and we should retain it. We won’t abandon such a good program. We will keep it and, if necessary, make adjustments and tighten the rules.”

Malta will choose a replacement for the current independent regulator, Carmel L. de Gabriele, and the new prime minister invited opposition leader Adrian Delia to participate in the selection process, extending an olive branch to the Nationalist Party. Abela expressed hope to engage the opposition in dialogue on various issues related to the program, including judicial appointments and constitutional amendments.

Adrian Delia, however, rejected the invitation, stating that the program has significantly damaged the country’s reputation and should be abolished. The Nationalist Party said that Delia wrote to the prime minister, stating that the opposition sees no need to discuss appointing a regulator for a program that continues to cause great harm to the country, according to the Malta Independent.

In response to this refusal, Abela said:

“...it is a mistake for the opposition leader to refuse such an important task.”

Meanwhile, the Malta Chamber of Commerce believes that the program should be closed, or at least temporarily suspended for a procedural review. At the same time, the Chamber’s president, David Xuereb, acknowledged that the investment program, along with other contentious aspects of Maltese political life, has put the country’s international reputation at risk, suggesting that the issues could be resolved by hiring international brand management experts.

The Chamber’s report to the government recommends:

“...preparing a comprehensive memorandum with the participation of relevant public and private sector bodies, outlining a detailed and comprehensive action plan to restore Malta’s image and reputation on the international stage.”

According to official data, Malta’s investment program has brought about €1.23 billion to the national budget since its inception in 2014; €834 million in contributions, €160 million in bond investments, €114 million in real estate investments, €93 million for residential rentals, and about €25 million in fees.