Ever thought about broadening your world beyond India? Picture the perks of having a European passport, especially from a welcoming country like Malta. Malta’s got a Citizenship by Investment program that’s custom-made for foreign investors, including you as an Indian national, that could dramatically transform your life. A Malta citizenship for Indian citizens could be just what you’re after!
In just a year, you and your family could gain the freedom to live, work, or study anywhere within the EU and enjoy visa-free travel to 183 countries. Plus, you must recognize the country’s tax benefits and top-notch healthcare and education system. Please keep reading to find out how you can strategically secure Malta’s citizenship and all the benefits that come with it.
Understanding Malta’s Citizenship Program
The Basics of Malta’s Citizenship Scheme
Malta, a member of the European Union since 2004, draws in foreign investors like you with its favorable climate, stable political environment, and business-friendly programs. The Maltese Government introduced the Citizenship by Investment Malta program to attract foreign investment and business expertise.
This program, also known as Malta citizenship by naturalization for exceptional services, grants citizenship through a Certificate of Naturalization. It’s tailored for those who can contribute to the country’s economic development. You’ll need to invest at least US $655,000 and live in Malta for three years or invest a minimum of US $ 819,000 for a one-year residency.
Specifications for Indian Citizens
The Malta Citizenship by Investment for Exceptional Services is available to residents of India. If you’re an investor from India, you can expect the processing time for a Malta Citizenship by Investment to be typically between 8 to 12 months. The minimum investment amount for Malta Citizenship usually exceeds US $928,000.
As a Maltese citizen, you, as an Indian national, can enjoy several tax benefits. These include no inheritance tax, estate duty, wealth tax, municipality taxes, or real estate taxes. If you hold Malta Permanent Residency, you can purchase residential property anywhere in Malta without an Acquisition of Immovable Property (AIP) permit.
Benefits of Maltese Citizenship
The Malta Citizenship by Investment program gives you and your family the right to live, work, or study throughout the EU. You can enter the USA and Canada without a Visa. You’ll also have the freedom to travel to the Middle East, Africa, Asia, and most countries in North, Central, and South America.
The Maltese passport is globally recognized as one of the strongest, allowing visa-free travel to 183 countries. This includes freedom of movement and visa-free travel within Europe. Malta also has an excellent healthcare system, ranked among the top five globally by WHO.
Your children will have the same access to Maltese public schools and universities as other Maltese residents. State schools are free for students, including transportation and books. The University of Malta is publicly funded and free for Maltese citizens.
The Economic Impact of Citizenship
Like other European countries, the Maltese tax system taxes individuals based on their domicile and residency, not their citizenship. Malta doesn’t impose taxes on inheritance or death. It also has a wide network of double taxation treaties, and doesn’t levy estate duty, net worth or wealth taxes, municipal taxes, rates, or real estate taxes.
If you secure your European citizenship through the investment program in Malta, there won’t be any tax consequences. Becoming a Maltese citizen won’t alter your or your family’s tax treatment unless you establish tax residence. Malta allows dual citizenship, which gives you more independence, property tax, and control for business activities.
Malta’s Citizenship Act clearly states that Malta dual citizenship with foreign nationals is permitted. As of February 10, 2000, a Maltese resident can acquire and retain foreign citizenship/s along with their Maltese citizenship.
Accessibility of Malta Citizenship for Indians
The Malta Citizenship by Investment for Exceptional Services program is a viable option for Indian citizens, offering lifelong citizenship that can be passed down to future generations. This program opens up Malta’s investment landscape and provides access to the entire EU.
Legal Requirements
To be eligible, you must fulfill certain legal obligations. These include a contribution to Malta of US $819,000 after 1 year or US $655,000 after 3 years of residency. Additionally, you must purchase a property valued at least US $764,000 or rent a property for US $17,500 annually. This first property purchase must be retained for a minimum of five years. A philanthropic donation of US $11,000 is also necessary, along with an extra US $55,000 for each dependent. Applicants must be at least 18 years old and in good health.
The Role of the Investment Immigration Agency
The Community Malta Agency, responsible for the national development fund, and the citizenship by investment program, was established to encourage foreign investment and business expertise. The program is limited to 400 successful applicants annually and will be capped after 1500 applicants have been granted citizenship.
Time Frame for the Application
The application process includes a fast-track Schengen residency process, which takes 1-3 weeks until the passport is issued. The overall timeline for Malta to obtain citizenship by investment is approximately 12 to 18 months.
Common Challenges for Indian Applicants
The process of acquiring Maltese citizenship through investment can be lengthy, particularly when compared to naturalization, which requires a minimum of seven years. You must have resided in the country with a permanent residence and residence permit for a cumulative period of four years within the last six years. Despite these challenges, however, the advantages of Maltese investment citizenship are numerous. This includes visa-free access to more than 180 countries and regions, making Malta an attractive second home due to its appealing climate and business-friendly programs.
Investment Requirements for Maltese Citizenship
The Malta Citizenship by Investment for Exceptional Services program, also known as Naturalization for Exceptional Services by Direct Investment, is a pathway to lifelong citizenship that can be passed onto future generations. The processing time for this program can extend up to 18 months.
The financial requirements involve a contribution to Malta for national development of US $819,000 after 1 year or US $ 655,00 after 3 years of residency. Additional costs include US $55,000 each for dependents and a philanthropic contribution of US $11. A valid residence card is necessary to apply for citizenship.
As a Maltese citizen, you’ll have access to Malta’s investment opportunities and the wider EU market. Malta’s membership in the EU since 2004 and the Schengen Area since 2007 give its citizens the freedom to live, work, or study anywhere within the EU.
You’ll also enjoy visa-free travel to 184 destinations, including the US, Canada, and the UK. Other perks include high-quality and free healthcare and education, exceptional services regulations, and tax benefits.
Malta’s political environment is stable, and its banks rank among the world’s top 5 most stable banks. The country also has an excellent healthcare system, ranked among the top five by the World Health Organization. As an Indian citizen, you can buy property in Malta within specially designated areas, even without an Acquisition of Immovable Property (AIP) permit.
The Malta Citizenship by Investment Program aims to contribute to the country’s economic development. It’s subject to a stringent due diligence process to ensure that you meet high standards.
The program is overseen by the Community Malta Agency, which has rejected around 23 percent of the total applications received due to false information.
Family members, including your spouse and children younger than 18, dependent children up to the age of 25, and parents and grandparents over the age of 55, can be included as dependents in a citizenship application by the primary applicant. Malta’s Citizenship Act explicitly allows dual citizenship, making you eligible to travel to many countries globally without a visa.
Financial Implications of Malta Citizenship
For Indian citizens considering this pathway, it’s crucial to understand the financial commitment. The program requires a significant investment, which typically exceeds US $ 930,000, equivalent to about INR 4.3 Cr.
Additional Financial Considerations
Beyond the initial investment, there are other financial aspects to consider. For instance, you’ll need to make a philanthropic donation of US $11,000 to an organization approved by the federal government agency, the Community Malta Agency.
While Malta’s tax system is based on domicile and residency, not citizenship, if you fulfill the residency requirement of the program, you are a tax resident and might be liable to pay tax on your income and capital gains in Malta.
Economic Advantages of Maltese Citizenship
Despite the substantial financial commitment, there are numerous economic benefits. As a Maltese citizen, you can travel, live, work, or study anywhere within the European Union. You’ll also get visa-free access to more than 180 countries and regions, including the UK, USA, and Canada.
Tips on Financial Planning for the Application
When planning for the application, consider all the financial aspects of the process. This includes the initial investment and the costs of donating to a local organization, using health insurance, and potentially paying taxes in Malta.
It’s worth noting that the Maltese government limits the number of successful applicants each year. So, it’s important to make sure your application is as strong as possible. This means ensuring that you meet all the eligibility criteria, which include being at least 18 years old and having the necessary funds for the investment.
Lastly, remember that obtaining Maltese citizenship through investment can take 12 to 18 months. So, you’ll need to plan accordingly.
Living in Malta as an Indian Citizen
Lifestyle and Cost of Living
Malta’s Mediterranean charm, with its sunny weather and rich history, makes it an attractive destination for Indian citizens. The country is currently experiencing a surge in housing development, offering a variety of options, from new apartments and condos starting at US $199,000. However, to qualify for residency, a home valued at $300,000 in Gozo or the south of Malta or a home worth US $350,000+ elsewhere in the country is required.
Despite limited farmland leading to most food being imported, several large grocery chains cater to the population’s needs. While the country lacks a train system, a public bus service is readily available, and app-based ride-sharing companies operate extensively.
Work and Business Opportunities
Malta’s EU membership opens up a plethora of business opportunities for Indian citizens. The Maltese government is actively encouraging Indian firms to establish businesses in the country, offering various incentives and a bilateral trade agreement with the Indian government to avoid double taxation.
There’s been a recent push to increase Indian investment in Malta’s IT and Pharmaceutical sectors. While starting a business can be lengthy due to government regulations and permit applications, purchasing an existing company is an alternative.
Cultural Aspects and Social Integration
Malta’s welcoming culture is evident in its first integration strategy, Integration = Belonging. This includes a national integration program called I Belong, which is free and voluntary for all third-country nationals arriving in Malta. However, Malta’s score of 48 out of 100 points on the Migrant Integration Policy Index, just below the average score of 49, indicates room for improvement.
The Education System in Malta
The robust education system in Malta caters to its diverse population. The healthcare system operates under two systems—public and private and is significantly cheaper compared to the U.S. With 20 medical centers in just 122 square miles, medical services are always within reach. The private medical sector is experiencing significant growth, particularly among expats with private healthcare coverage.
Final Thoughts
Securing Maltese citizenship by investment opens a world of opportunities for Indian citizens. Though rigorous and requiring a substantial investment, the process yields significant benefits. Besides the freedom to travel, live, work, or study throughout the European Union, you’ll enjoy a stable political environment, robust healthcare and education system, and numerous tax benefits.
As you embark on this journey, consider each aspect carefully, fulfilling all legal obligations and planning your finances meticulously. The Malta Citizenship by Investment for Exceptional Services program is an excellent opportunity to tap into the EU market and secure a safe and prosperous future for yourself and your family.
