MALTA Law and Practice Contributed by: Rosanne Bonnici and Rebecca Diacono, Fenech & Fenech Advocates
Non-EU/EEA/Swiss nationals While also being entitled to relocate to Malta based on economic self-sufficiency, employment or study, non-EU/EEA/Swiss nationals (TCNs) will be required to satisfy more stringent conditions in doing so. Where a TCN relocates to Malta on the basis of employment, their Single Permit Application submit - ted to the Expatriates Unit is typically subject to labour market considerations, whereby the employer is to provide justifications as to why they are employing a TCN rather than an EU/EEA/Swiss national. There are certain exceptions to said labour market considera - tions, with the most popular being the Key Employee Initiative Scheme, which exempts TCNs holding a managerial position and earning at least EUR35,000 per annum from labour market considerations; in addi - tion, said employees’ applications are fast tracked from a processing time perspective. On the other hand, a TCN wishing to relocate to Malta on the basis of economic self-sufficiency may, in prac - tice, only do so once they benefit from one of the available tax or immigration programmes, such as the GRP or the Malta Permanent Residence Programme (MPRP). Global Residence Programme (GRP) The GRP is a tax programme open to TCNs, and applies a flat 15% rate to any foreign-sourced income remitted to Malta, subject to a minimum annual tax payment of EUR15,000. The GRP is very popular with TCNs who wish to relocate to Malta and set up a home there, as the processing time is relatively short. Once the applicant becomes a beneficiary of the pro - gramme, they can move on to apply for a residence card allowing them to reside, settle and stay in Malta; this also doubles as a Schengen visa. The TCN may opt to include their dependants, as defined under their GRP application, as they would be entitled to apply for a residence card. Malta Permanent Residence Programme (MPRP) On the other hand, the MPRP is an immigration pro - gramme, modelled on its predecessor, the Malta Residence and Visa Programme. The MPRP is more onerous than the GRP on several fronts, as the fees
payable to the authorities, the quantum of the dona - tion to be made to a voluntary organisation and the rental/purchase qualifying amounts involved therein are significantly higher than the GRP. It is, however, based on a different premise altogether, with taxa - tion playing no part therein. Beneficiaries under the MPRP may apply for residence in Malta on the basis of economic self-sufficiency, with the added benefit that one may apply for a residence card issued for a five-year period (as opposed to for a one-year period when applied for by a beneficiary of the GRP), subject to ongoing compliance obligations. Tax residence Individuals may become tax-resident in Malta in one of two ways: • by spending 183 days or more in Malta over a 12-month period; or • by moving to Malta with the intention to reside in Malta indefinitely, basing themselves in Malta and only spending as much time away for business or leisure purposes as would be in line with a claim that they are residing in Malta. Citizenship Individuals may become a citizen of Malta by birth, registration or naturalisation. Individuals born in Malta to a Maltese parent are auto - matically considered a citizen of Malta by birth. Individuals married to and living with a citizen of Malta for at least five years may apply for Maltese citizen - ship, as can a widow or widower of a citizen of Malta. A direct descendant or second- or subsequent-gen - eration descendant born abroad to a parent born in Malta, whose own parent was also born in Malta, may also apply for Maltese citizenship. An individual may apply for citizenship by naturali - sation if they have physically resided in Malta for an aggregate period of five years in the previous six-year period. In practice, however, it is understood that the authorities have not been as forthcoming as one might wish in this context, with residents at times having only managed to secure citizenship after significantly longer periods of residence.
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