Malta has emerged as an attractive destination for foreigners seeking economic stability and a high standard of living. The Maltese government has introduced various investment programs to promote the country's economy and provide opportunities for foreign investors and expats. One popular avenue is the Malta Permanent Residence Program (MPRP), which offers residency by investment.

While direct investment can lead to permanent residency in Malta, obtaining citizenship through investment is not a direct option. However, foreign investors have the opportunity to apply for Maltese citizenship by naturalisation through the Malta Citizenship by Naturalization for Exceptional Services by Direct Investment program (CES). This program expedites the naturalisation process for investors who meet the investment and eligibility requirements.

Unlike an investment visa such as the Malta Investor Visa, the CES program grants full Maltese citizenship and a European passport to successful applicants and their families. The timeline for obtaining citizenship through this program is typically 36 months of residence, but it can be expedited to 12 months with a larger minimum investment.

This guide aims to provide detailed insights into the Maltese Citizenship by Naturalization program and help individuals understand the requirements and steps involved in obtaining Maltese citizenship through investment.

A guide to Malta Citizenship by Naturalization

Obtaining citizenship through investment, also known as citizenship by investment, involves acquiring a second nationality from a foreign country by making a significant investment in its economy. This typically involves activities such as investing in real estate, purchasing shares in an existing business, establishing a new company that generates employment opportunities, or contributing to a national development fund.

In the case of Malta, while there is no direct pathway to citizenship by investment or dual citizenship, applicants can qualify for Maltese citizenship by naturalisation through a program known as CES (Citizenship by Naturalization for Exceptional Services). This program requires individuals to maintain a consistent period of residence in Malta while making various investments that contribute to the country's economy and national development. 

The investments that qualify applicants for this Malta citizenship program include a non-refundable direct investment, investment in real estate, and a philanthropic donation. Each application undergoes a rigorous due diligence process conducted by the Community Malta Agency (CMA), the government agency responsible for overseeing and granting Malta citizenship applications through investment.

The due diligence process entails comprehensive background checks to assess an applicant's character, the source of funds, and any other relevant factors. This process ensures that only individuals of the highest standards and integrity are considered for Maltese citizenship through investment.

Maltese citizenship by naturalisation through a program known as CES (Citizenship by Naturalization for Exceptional Services)

The Malta Citizenship by Naturalization for Exceptional Services by Direct Investment program (CES) was launched in late 2020, replacing the previous Malta Individual Investment Program (also known as the Malta Investor Visa). This new scheme serves as a policy update to the previous Malta citizenship by investment program.

Under the CES program, applicants have the opportunity to obtain Maltese citizenship and a Maltese passport, provided they meet the updated requirements set by the Maltese government for the investment program. These changes were implemented to raise the standards for acquiring Maltese citizenship through investment, ensuring that only individuals who are genuinely committed to investing in and contributing to the Maltese economy, and who pass rigorous due diligence checks, can obtain new Maltese citizenship.

Advantages of the Maltese Citizenship by Naturalization to foreigners

The Maltese Citizenship by Naturalization program offers several benefits to foreign nationals who obtain Maltese citizenship:

1. Freedom of movement within the EU

Maltese citizenship grants individuals the right to live, work, and conduct business in any European Union member state. This provides opportunities for entrepreneurs to establish businesses and access the benefits of the EU's single market.

2. Visa-free travel

A Maltese passport enables visa-free travel to 170 countries worldwide, offering greater mobility and ease of travel.

3. Dual citizenship

 Investors can obtain Maltese citizenship while maintaining their citizenship from their home country, allowing them to enjoy the benefits of dual citizenship.

4. Passports for the family

 The program allows immediate family members to also acquire Maltese citizenship, providing opportunities for family members to work, study, and access educational benefits across the European Union.

5. Tax efficiency

 Malta's tax system is based on residency, not citizenship, offering potential tax advantages for individuals. Income from global sources may not be subject to taxation, and certain tax schemes for new citizens can provide additional tax efficiency.

6. Stability and security

 Malta boasts a stable political climate, a strong economy, and a low unemployment rate. It is considered one of the safest countries in Europe.

7. Quality of life

 Malta offers a high quality of life, with a pleasant climate, beautiful Mediterranean Sea, cultural heritage sites, modern infrastructure, and reliable healthcare services.

8. Access to healthcare

 Malta has an excellent healthcare system, ranked highly in international studies. Investors and their families can benefit from health insurance coverage and access to quality medical services.

9. LGBTQ-friendly

 Malta has been recognized as a leader in promoting LGBTQ rights, with comprehensive legal protections and a commitment to equality and inclusivity.

These advantages make Malta an appealing destination for individuals seeking greater mobility, business opportunities, tax efficiency, a secure environment, and an enhanced quality of life for themselves and their families.

Criteria to be eligible for the Malta Citizenship by Naturalization program under the CES

To be eligible for the Malta Citizenship by Naturalization program under the CES (Citizenship by Naturalization for Exceptional Services) scheme, applicants must meet the following criteria:

• Age requirement: Applicants must be at least 18 years old.
• Nationality: The program is open to third-country nationals, meaning individuals who are not citizens of the European Union (EU), European Economic Area (EEA), or Switzerland.
• Clean criminal record: Applicants must have a clean criminal record and provide the necessary documentation to prove this.
• Due diligence process: Applicants must pass a rigorous due diligence process conducted by the Community Malta Agency, which involves comprehensive background checks related to character, reputation, and the source of funds.
• Sanctioned countries: Applicants should not originate from or have close ties to any sanctioned countries as specified by the Maltese government.
• Investment requirements: Applicants must fulfil the investment requirements of the program, which include meeting the minimum investment thresholds.
• Investment amount: The main investment should be a minimum of €600,000 ($640,000) if the applicant has completed 36 months of residency in Malta or €750,000 ($800,000) if the applicant has resided in the country for 12 months.
• Residential property: Applicants are required to purchase a residential property in Malta with a minimum value of €700,000 ($747,000). The property must be held for at least five years. Alternatively, applicants can opt to lease a residential property with an annual rent value of at least €16,000 ($17,000), which must also be held for a minimum of five years.
• Donation: In addition to the investment and property requirements, applicants must make a donation of €10,000 ($10,670) to an approved Maltese organisation, as specified by the Community Malta Agency.

By fulfilling these eligibility criteria and meeting the investment and residency requirements, individuals can qualify for Maltese citizenship through the CES program.

Individuals that can apply for the Malta Citizenship by Naturalization program

The following individuals can apply for the Malta Citizenship by Naturalization program as part of the main applicant's application:

• Spouse: The main applicant's spouse can be included in the application for Maltese citizenship.
• Unmarried dependents under 20 years old: Children who are under 20 years old and unmarried can be included in the application.
• Dependent parents over the age of 55: Dependent parents who are over the age of 55 and fully reliant on the main applicant can also be included in the application.

Each family member included in the application must meet certain criteria, including having a clean criminal record and passing a personal background check.

Additionally, both the main applicant and their family members must satisfy the following criteria:

• No previous visa denial: None of the applicants should have been denied a visa by a country that has a visa waiver agreement with Malta.
• No national security or reputation risks: The applicants should not be considered a national security risk or pose a risk to Malta's reputation.
• No ongoing criminal investigations: None of the applicants should be under criminal investigation or have a criminal record that raises concerns.
• Non-association with specific countries: The applicants should not hold citizenship from or have significant ties, connections, or residence in the following countries: Afghanistan, Belarus, Democratic Republic of Congo, Iran, North Korea, Russia, Yemen. Additionally, applicants should not be citizens of countries on the US travel ban list.

By meeting these criteria, both the main applicant and their eligible family members can apply for the Malta Citizenship by Naturalization program.

Requirements needed for the CES Program

To qualify for the Malta Citizenship by Naturalization for Exceptional Services by Direct Investment (CES) program, applicants must fulfil the following investment requirements:

Direct non-refundable contribution

Applicants are required to make a non-refundable contribution to the National Development and Social Fund (NDSF) established by the Maltese government. The contribution amount varies depending on the circumstances:

• Main applicant: The contribution is €600,000 ($640,000) if the applicant has completed 36 months of residency in Malta or €750,000 ($800,000) if the applicant has resided in the country for 12 months.
• Spouse and minor children: An additional contribution of €50,000 ($53,000) per dependent is required.
• Unmarried adult children (18-26 years old) and dependent parents over 55 years old: An additional contribution of €50,000 ($53,000) per dependent is required.

Investment in real estate

Applicants must acquire a residential property in Malta with a minimum value of €700,000 ($747,000). The property must be held for at least five years from the date of naturalisation.

Lease of property

 Alternatively, applicants can opt to lease a residential property in Malta with a minimum annual rent of €16,000 ($17,000). The lease agreement must be for a minimum period of five years.

Donation to an approved organisation

 In addition to the above investments, applicants are required to make a donation of €10,000 ($10,670) to a Maltese organisation approved by the Community Malta Agency.

It's important to note that these investment requirements are subject to change, and it's recommended to consult with a professional advisor or the official government sources for the most up-to-date information regarding the investment thresholds for the CES program.

Four stages of obtaining Maltese Citizenship by Naturalization through Exceptional Services (CES) 

The process of obtaining Maltese Citizenship by Naturalization through Exceptional Services (CES) can be divided into four stages:

Stage 1: Residency in Malta

• Apply for a Maltese residence card to gain a residency permit in Malta.
• Pass the due diligence check conducted by the Community Malta Agency.
• Obtain a permanent residence card with a 36-month validity.
• Submit biometric data for the residence card.
• Lease an apartment as a prerequisite for the residency application.

Stage 2: Eligibility for citizenship

• Submit a citizenship eligibility application to the Community Malta Agency within 12 months from the issuance of the residency card.
• Undergo due diligence checks and provide any requested additional information or documents.
• The Community Malta Agency presents the application to the Minister for a decision on eligibility.
• If eligible, receive a Letter of Approval in Principle and pay additional fees.

Stage 3: Maltese citizenship

• After 12 or 36 months from the residency stage, submit the application for the investment passport scheme to the Community Malta Agency.
• The Community Malta Agency updates its due diligence and presents the findings to the Minister for a decision on citizenship.
• If approved, fulfil the exceptional investment, donation, and property requirements.
• Obtain citizenship, with a processing time of approximately two to three months from the approval date.

Stage 4: Naturalisation

• Visit Malta and take the Oath of Allegiance within six months from the issuance of the Letter of Approval in Principle.
• Acquire citizenship, a Maltese passport, and receive a Certificate of Naturalization.
• The names of all naturalised individuals are announced yearly in the Government Gazette.

The associated fees for each stage include residency permit fees, due diligence fees, administrative fees, government direct investment, and charity donation. The exact fees are subject to change, and it's advisable to consult official sources or professional advisors for the most up-to-date information.

Monitoring

The Community Malta Agency (CMA) conducts continuous monitoring for a period of five years to ensure compliance with the program's requirements. If an individual fails to meet these requirements, their citizenship may be revoked. It is important to maintain residence in Malta for at least five years from the date of receiving the official certificate of citizenship to retain your citizenship status.

Taxation in Malta

Malta offers a favourable tax environment for individuals participating in the citizenship by investment program. Some key aspects of taxation in Malta include:

• No inheritance tax, estate duty, wealth tax, municipal taxes, or property ownership tax.
• American retirees can benefit from tax exemptions on pension incomes. The tax exemption amount in 2022 is 20% (capped at €2,864 or $3,055). In 2023, it will be raised to 40% of pension income (capped at €5,727 or $6,108). This demonstrates the Maltese government's commitment to ensuring fair taxation for elderly Maltese citizens, allowing them to maintain a good quality of life.

It is important to consult with a tax advisor or professional to fully understand the tax implications and benefits associated with Malta's taxation system.

Guide steps to the Malta Citizenship by Naturalisation Application

•  Purchase qualifying real estate in Malta and register for residency. You can refer to the Malta real estate guide for assistance in this process.

•  After residing in Malta for 12 to 36 months, apply for the Malta investment program. Pay the required due diligence fees, submit the necessary paperwork, and undergo a comprehensive criminal background check conducted by INTERPOL, the International Criminal Court, and other relevant authorities.

• Wait for a period of approximately 120 to 150 days for the relevant authorities to review your application. During this time, they will assess your eligibility and conduct thorough evaluations.

•  Once your application has been reviewed and approved, you will receive a conditional acceptance. At this stage, you must fulfil any remaining requirements or obligations outlined by the authorities.

•  Upon successfully completing all the necessary requirements, you and your eligible dependents will receive a naturalisation certificate, granting you Maltese citizenship. As a result, you will be issued Maltese passports, officially recognizing you as citizens of Malta.

Please note that the specific timeline and requirements may vary depending on individual circumstances and any updates to the citizenship by naturalisation program. It is advisable to consult official sources or seek professional guidance to ensure you have the most accurate and up-to-date information throughout the application process.

General overview of the timeline:

The timeline for obtaining Malta citizenship by naturalisation can vary depending on individual circumstances and the specific requirements of the program.

• Residency Stage: After purchasing qualifying real estate in Malta and registering for residency, you will need to reside in Malta for a period of 12 to 36 months, as specified by the program.
• Eligibility Assessment: Once you have completed the required residency period, you can submit your citizenship eligibility application to the Community Malta Agency. The due diligence process will be conducted, which may take around 120 to 150 days for completion.
• Citizenship Application: If your eligibility is approved, you will receive a conditional acceptance and can proceed with the citizenship application. You will be required to fulfil any remaining requirements and pay the necessary fees.
• Naturalisation: Once you have met all the requirements and your application is approved, you will be invited to take the Oath of Allegiance. This usually needs to be completed within six months from the issuance date of the Letter of Approval in Principle. Upon taking the oath, you will receive a Certificate of Naturalization and be granted Maltese citizenship.

It is important to note that these timeframes are approximate and subject to change. The actual processing time for each stage may vary based on factors such as the complexity of your application, the volume of applications being processed, and any additional documentation or information required.

Comparing the Malta Permanent Residency Program (MPRP) and Citizenship by Naturalization

Here’s a comparison of the Malta Residence and Visa Programme versus Malta citizenship programme.

FAQs about Malta Citizenship by Investment

How can I obtain Malta citizenship?

While direct citizenship by investment is not available in Malta, you can be eligible for Malta's Citizenship by Naturalization for Exceptional Services by Direct Investment program. To qualify for naturalisation after three years, you must make a minimum investment of €600,000 ($640,000). An investment of €750,000 ($800,000) can reduce the processing time to one year. Residing in Malta throughout the eligibility period is mandatory for obtaining citizenship by naturalisation.

What is Malta's new program?

Malta's new program refers to the updated policy of the previous Malta citizenship by investment scheme, which came into effect in early January 2021. The new program is known as CES (Maltese Exceptional Investor Naturalization Regulations).

Is there a language test for Maltese citizenship?

No, there is no language requirement for acquiring Maltese citizenship or Malta citizenship by investment. English is one of Malta's official languages, spoken by 88% of the population, making it convenient for British, Canadian, and US expats.

Do I need a lawyer to get citizenship by investment in Malta?

While direct citizenship by investment is not available in Malta, the process leading to citizenship eligibility must be carried out by a government-approved agent. Engaging a lawyer familiar with Malta citizenship and real estate law is essential.

Is Malta a member of the European Union?

Yes, Malta is a full member of the European Union (EU). Obtaining citizenship in Malta grants European citizenship, allowing for freedom of movement and the right to live and work in EU member states and the Schengen Area.

Is Malta in the Schengen Zone?

Yes, Malta is part of the Schengen Zone, enabling Maltese citizens with a Maltese passport to enjoy borderless travel and freedom of movement within the Schengen Area.

How much does Malta citizenship cost?

Maltese citizenship by naturalisation involves investments of around €690,000 ($736,000) or more, including additional costs for dependents. This includes a minimum non-refundable investment of €600,000 ($640,000) for the 36-month residence period or €750,000 ($800,000) for the 12-month period. Additionally, purchasing residential real estate valued at least €700,000 ($747,000) or entering a lease agreement with an annual rent of at least €16,000 ($17,000) for five years is required. A philanthropic donation of at least €10,000 ($10,600) must also be made.

Can I rent out my property in Malta?

During the minimum five-year requirement, renting out your property in Malta is not allowed, as it conflicts with the intention to maintain residence in the country.

Can I pass Maltese citizenship on to my children/grandchildren?

Yes, Malta follows the principle of jus sanguinis (right of blood), meaning children born to Maltese citizens, whether in Malta or overseas, inherit citizenship by descent. Citizenship can be passed on to children and grandchildren, making them eligible for Maltese citizenship.

How fast can I get Maltese citizenship?

You must hold Maltese residency for at least 12 to 36 months before becoming eligible to apply for Malta citizenship through naturalisation.

Can my Maltese citizenship be revoked?

Under specific conditions, Maltese citizenship can be revoked, such as failure to pass periodic due diligence checks or obtaining citizenship through fraudulent means. Threats to national security can also lead to revocation.

Does Malta recognize Bitcoin?

While Malta has lenient regulations regarding cryptocurrencies like Bitcoin, it does not recognize Bitcoin as a method of payment for the Malta Citizenship by Naturalization Scheme or any other Maltese visa program.

Can I buy Malta citizenship?

It is not possible to buy or be granted Maltese citizenship directly, but citizenship by naturalisation is possible. Your eligible family members can also acquire citizenship when you are eligible to apply for citizenship by naturalisation.

Can I get residency in Malta if I buy a house?

Acquiring residency in Malta is possible through the purchase of property. The Malta Residence Permanent Residence Program (MPRP) allows individuals to obtain Malta residency by investing in real estate. The program has specific investment and residency requirements.

How much does it cost to invest in Malta for permanent residency?

The cost of investing in Malta for permanent residency through the Malta Residence Permanent Residence Program (MPRP) involves several investments totaling at least €110,000 for leasing or €370,000 for purchasing real estate. This includes investments, government contributions, charitable donations, and administrative fees.

How hard is it to get citizenship in Malta?

Obtaining citizenship in Malta can be a relatively straightforward process if you meet the eligibility criteria for Malta citizenship by naturalisation. This includes meeting investment requirements, passing due diligence checks, and fulfilling residency obligations. Professional guidance from experts in the field can help simplify the process.