Successful applicants to Malta’s citizenship-by-investment program prefer to rent property rather than buy.
Of 143 people given a passport until the end of April, 116 of them signed a five-year rental contract worth an average €21,000 a year.
Under the terms of the program, applicants can choose to either invest in property worth at least €350,000, or lease a property for a yearly minimum rent of €16,000.
But only 27 applicants have taken the option to buy, spending an average €950,000.
Investment Requirements for Malta Individual Investor Program
- Main Applicant: €650,000
- Spouse: €25,000
- Child under 18: €25,000
- Unmarried child aged 18-26: €50,000
- Dependant parent over 55: €50,000
After approval, the applicant must
- Invest at least €150,000 in approved instruments and hold the investment for at least five years.
- Buy residential immovable property in Malta with a minimum value of €350,000 and hold the property for at least five years or lease a residential immovable property in Malta with a minimum annual rent of €16,000 for a period of five years.
Furthermore, many of the millionaires who have applied for the program are apparently living in apartments in modest areas of the country.
A 12-month residency rule was added to the program in order for it to achieve European Commission approval, which it now has.
As of the end of April, 667 applications for the program had been received, of which 143 were approved and 84 rejected. The remaining are still being considered.
Maltese Prime Minister Joseph Muscat said recently the success of the citizenship program was down to allowing technical experts to run it, instead of politicians.
The program is regularly picked out as one of the best in class for citizenship-by-investment. It has raised more than €1 billion in the 18 months since it was introduced.
Malta Residence Investor Program: Tax Summary
- Progressive tax rates ranging from 0% to 35% based on the annual income of the resident
- No tax on foreign capital gains and unremitted foreign income
- No minimum annual tax liability
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