The place where even a small contribution yields high return
How can a tiny island state in the heart of the Mediterranean that enjoys no natural resources, be the location of choice when searching for high investment returns? The answer to this question is a simple one: Malta is a state where even small investments can yield big returns. Looking at the country’s stance on business, it becomes clear that Malta has an ever-growing economy which continuously sees an intake of foreign direct investment from persons and entities interested in cultivating their wealth. Indeed, 2018 saw 43,000 expats and a consistent increase in foreign workers on the island. Investment options vary from corporate structuring to opportunities related to Blockchain, but investing in the country itself remains by far the most chosen investment route.
The launch of Malta’s citizenship by investment programme in 2014 and the expanding range of residency programmes created various options for individuals and families looking to invest in the island. Investing in such a venture is essentially an investment for life and allows for greater benefits for growth to come into fruition.
Property Investment
With the value of property in Malta rising consistently and the property sector booming, Malta has been pinpointed as the third best location to invest in property within the EU for the final quarter of 2018. Indeed, statistics also show that from 2015 to 2018, there was a 16% increase in the Property Price Index and a 28% increase when the values are compared to 2013. The return on property investment is evidently high when compared to other jurisdictions in Europe. Furthermore, when investing in property, one also has the opportunity (provided the other requirements are satisfied) to obtain Maltese citizenship or residency. In fact, an investment in property of at least €350,000 and €270,000 is required for Maltese citizenship by investment and residency by investment, respectively. Alternatively, one may opt for the rental option which requires a rate of at least €16,000 p.a. for citizenship and €10,000 for residency.
Mobility Investment
To obtain Malta citizenship by investment, one is also required to contribute a minimum of €650,000 to the Maltese economy. Recording a 3.9% surplus in 2017 and the largest economic growth within the Eurozone, Malta is the ultimate location for corporate investment. And this is not all. The benefits of investing in Malta are not merely economic – with Maltese citizenship, a successful applicant enjoys visa-free access to more than 166 countries, as well as the right to live, study, and work in any EU member country. The residency programme similarly provides investors with visa-free travel to the Schengen Area countries as well as a Certificate of Permanent Residency for Life.
An Investment in Family
As family is often considered one of the key elements influencing individuals in their investments, the legislator incorporated within the law the ability for applicants to include their family members/dependants in the application, with an additional contribution of €25,000 for each child and for the spouse, and €50,000 for dependent parents. A successful citizenship by investment application gives the family access to free and high-quality healthcare. For the residency programme, on the other hand, an additional contribution of €5,000 is required per dependant.
Malta has managed to build an economic environment which meets the interests of the global investment market. It is no surprise that industries such as financial services, gaming, shipping and yachting, pharma and tourism are flourishing. When this is coupled with Malta’s air-tight real estate framework, the island is placed at the top of any potential investor’s list.
