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Should you choose Malta for your second citizenship investment?

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January 31, 2019

Should you choose Malta for your second citizenship investment?

Should you choose Malta for your second citizenship investment?
rihab saad

Author:

Rihab Saad

General Manager

Next Generation Equity

It is no surprise you are considering investing into second citizenship. For those with financial means, a second passport is a portfolio must-have.

But there are so many excellent programmes now. It is difficult to decide which represents the best investment opportunity for you.

Here is our honest perspective on Malta, so you can avoid buyer’s remorse and choose the second citizenship investment that ticks all the right boxes for you and your family.

Could Malta be the one? 5 reasons to say yes to Maltese citizenship.

Let us dig into the Malta Individual Investor Programme, so you know exactly what you will gain for your investment.

1. Exceptional global mobility

Simple, spontaneous travel and easy EU access

Improving global mobility is likely a major reason you are considering second citizenship, and Malta really excels here.

Malta has been a member of the European Union since 2004, and a Schengen member since 2007. This means Maltese citizens benefit from preferential trade and travel agreements with many countries worldwide.

For instance, Maltese passport holders can travel to 183 countries on visa-free or visa-on-arrival terms. It’s the 6th most powerful passport in the world.

For instance, Maltese passport holders can travel to 183 countries on visa-free or visa-on-arrival terms. It’s the 6th most powerful passport in the world.  

That means your investment in Malta translates into easier, faster travel worldwide. Your Maltese passport unlocks countries you likely could not previously have visited and will reduce bureaucracy and delays associated with securing visas. Plus, an EU passport means you can live, travel and work freely anywhere across the EU.

Now, you won’t get your Maltese passport for 12-months – but the programme gives you immediate Schengen Residence status from your application date. This allows you to travel without visa restrictions across the 26-state Schengen area while you wait.

2. Fast, proven process

Trust your money is safe and your investment will deliver

Second citizenship is a sizeable investment so it is natural to want some reassurance before moving your money.

The Malta programme has an excellent reputation. The eligibility criteria and process are clearly defined, so you know exactly what to expect.

The Malta programme has an excellent reputation. The eligibility criteria and process are clearly defined, so you know exactly what to expect.

First, choose a registered agent. Your agent will help you collate all the required details and send your application to Identity Malta.

The Malta Individual Investor Programme Agency will send you an acknowledgement of receipt, then within four months the government will review your file.

Only once you get your approval letter you pay the remainder of a EUR 650,000 contribution to the Maltese government. Your agent will then help you find a qualifying property, to buy for a minimum of EUR 350,000 or rent for EUR 16,000 per year for five years.

Finally, you invest EUR 150,000 into securities (including government bonds) listed on the Malta Stock exchange, which you need to retain for five years. You can also sell your property after five years.

After 12-months of holding residence status, you receive a certificate of naturalisation and your new passport.

3. Secure a safe and prosperous new lifestyle

Invest in the peace-of-mind of a stable second home

Many investors view second citizenship as an insurance policy, to guarantee a safe home should you ever need one.

Malta is a fantastic choice if that is your motivation. The country enjoys a very low crime rate, ranking in the 20% safest countries on the global crime index. It is also one of best economic performers within the whole of the EU with an average of 6.5% GDP increase over the past years.

Malta is also a politically stable nation, protected from the trials and tribulations many other countries face. For example, the KOF Globalisation Index ranks Malta as the 35th most globalised country in the world based on various economic, social and political indictors.

Malta also boasts one of the best healthcare systems worldwide. Maltese citizenship gives you premium medical support at your fingertips.

Given those truths, it’s unsurprising that Malta is so popular amongst foreign investors. Add Malta’s beautiful Mediterranean climate, rich culture, robust infrastructure and stunning surroundings and you’ve got a solid case for investment.

4. Boost your returns by investing into property

Boost ROI by investing in a booming real estate market

Second citizenship is a fantastic investment, but the returns can be harder to quantify than other assets in your portfolio. Not so with Malta.

Because the programme involves investing into property, you get a tangible real estate asset as well as your second passport. So, you do not only enjoy increased global mobility and better security - you also capitalise on a booming and vibrant real estate industry.

So, you do not only enjoy increased global mobility and better security - you also capitalise on a booming and vibrant real estate industry. 

And vibrant it is. There is a surging interest in Maltese property, with particular increase in the buy-to-let market. Although nowhere in Malta is a bad bet, the most interest – and resulting price increases – are in Sliema, St. Julians, Gzira and Msida.

For investors with an eye for long-term returns, Malta is a compelling offer.

5. Make personal and corporate tax savings

Protect your wealth from heavy tax penalties

Safeguarding your wealth for the future is likely one major reason you are considering second citizenship. Especially if your home nation has heavy taxation.

Malta’s taxation system is based on domicile and residence, so you are not a tax resident in Malta unless you reside there for more than 183 days annually. Maltese residents are not subject to tax on foreign source income unless remitted and are not subject to foreign-source capital gains, even if remitted to Malta.

Maltese companies are taxed at 35% but a refund system means the effective tax rate can drop to 0% to 10%. The country’s structures are frequently used as an entry point into the EU and thanks to a friendly business environment, low levels of unemployment and a stellar performing economy, Malta is also frequently selected as the head office for multinational organisations.

The point is this. Investing in Maltese second citizenship can save a significant amount on personal and corporate taxation, helping future-proof your financial assets.

Choosing a second citizenship programme can be overwhelming. Hopefully these five pointers have helped shed a light on the Maltese value proposition and brought you a step closer to choosing a programme worthy of your investment.

Next Generation Equity is a world-class provider of second citizenship and residency programmes tailored to the individual needs of discerning clients across the globe. To learn more about our programmes, please sign up for a free consultation via the form below.

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