South African nationals wishing to obtain a Plan B abroad are increasingly considering Malta as a prime jurisdiction for a second country residency.
Find out how you can obtain second country residency below:
As a member state of the European Union, Malta is strategically well situated at the heart of the Mediterranean, with very close ties to mainland Europe, North Africa and the Middle East. In reality, the country is the entry point into Europe from the south and into Africa from the north, with good air route connectivity. It shares time zones with South Africa (GMT + 2), making it ideally suited for conducting local business from abroad.
Apart from the relaxed lifestyle and sun-drenched climate, very friendly and hospitable people, Malta offers South Africans the ability to obtain residency and allows for visa free travel to and within the European Union. Family members can also be included under the primary resident’s application, and depending on which residency programme you choose, you are not required to permanently reside in Malta in order to be able to obtain residency.
An additional draw card is the relatively friendly taxation requirements – residents are only taxed on their remitted income and Malta based earnings. A 15% tax rate is typically charged in respect of any foreign sourced income remitted into Malta. There is however the option of claiming double tax relief.
If you are looking for a stable political climate, relatively crime-free and safe to live in environment, having superb education and health services, look no further than Malta
If you want to compare the different permanent residency’s and citizenship, please click link below
Malta Permanent Residency and Citizenship Comparison table pdf
Ordinary Residence for EU Nationals
Grounds on which EU nationals can become ordinary residents are economic self-sufficiency, employment, education and opening a business
It requires individuals to physically live on the island for a period of 6 months or more.
There is no minimum value property requirement for non-residents seeking to obtain ordinary residence.
Requirements
In the case of self-sufficiency you have to show you can provide for yourself and not need any support from the Maltese government.
Single persons:
- € 92.00 income per week or
- € 14 000 Capital
Married persons:
- € 109.00 income per week or
- € 23 300 Capital
Ordinary Residence for non EU/EEA Nationals
This programme requires individuals to physically live on the island for 6 months or more.
An employment licence is required in order for a non EU/EEU national to work in Malta. This is granted upon satisfying certain criteria.
Requirements
Employment:
Get an offer of employment and then apply for the employment licence, this is required in order for a non EU/ EEU national to work in Malta. This is granted upon satisfying certain criteria. Candidates in the financial services and IT fields are sought after and therefore might be easier to get an employment licence.
Self Employed:
Capital expenditure
Fixed assets € 500 000 which shall solely consist of fixed assets ( such as immovable property, plant and machinery) used for business purposes reflected in a business plan submitted on application. Rental contracts do not qualify
or
Be a highly skilled innovator who commits to recruiting at least 3 Maltese/EU/EEU nationals within 18 months
or
Be a sole representative of an overseas company established at least 3 years abroad wishing to open a branch in Malta
Work for ones own company
Fully paid up share capital € 500 000 and may not be redeemed or transferred for 2 years. or
Capital expenditure
Fixed assets € 500 000 Shall solely consist of fixed assets ( such as immovable property, plant and machin- ery) used for business purposes reflected in a business plan submitted on application. Rental contracts do not qualify
or
The company is a sole representative of an overseas company established at least 3 years abroad wishing to open a branch in Malta
The Global Residency Programme for Non EU Nationals
This programme is for non-EU nationals interested in taking up residence in Malta while enjoying a favourable tax rate. A flat rate of 15% is applicable on foreign income remitted to Malta, with a minimum tax of € 15 000 per year. Holders are also able to work or set up business in Malta subject to applying and obtaining necessary permits.
Requirements
Property
Buy property
€ 275 000 if bought in N Malta
€ 220 000 if bought in S Malta/Gozo
or
Rent property
€ 9 600 per year if rented in N Malta
€ 8 750 per year if rented in S Malta/Gozo
Stay requirements
No minimum stay but you MAY NOT spend more than 183 days (6 months) in any other 1 jurisdiction outside of Malta
Application fees
€ 6 000 if property is bought or rented in N Malta
€ 5 500 if property is bought or rented in S Malta/Gozo
Health Insurance
Residents under this programme and their dependents require health insurance cover.
The Nomad Residence Permit for Non EU Nationals
This programme is for non-EU nationals interested in taking up residence in Malta while working remotely. Applicants must be employed by a company which is based out of Malta, run their own business or provide freelance services to clients outside of Malta. Applicants must have proof of the remote work.
Requirements
- Have a contract of work with employer registered in a foreign country, freelance or consultancy contract
- Applicant must reach a monthly income threshold of € 2 700 plus a 20% extra per family member.
- Hold a valid travel document
- Health insurance: All risks covering you in the EU
- Hold a valid rental agreement or property deed in Malta
- Pass a background verification check
Taxation
Malta has a very interesting tax regime for digital nomads, where foreign income is not taxed if it’s not remitted to the country itself. They will only be taxed locally on income earned for work done for a Maltese company, if any.
The Malta Startup Resident Programme for Non EU Nationals
This is for Non-EU nationals who wish to set up highly innovative, highly disruptive startups. This Programme is designed to increase Malta’s competitiveness in the field of highly innovative startups. Beneficiaries of this programme shall be granted a 3-year residence permit, extendable for an additional 5 years, allowing them to legally reside in Malta while launching their startup venture. Beneficiaries may also travel within the Schengen Area without the need of a visa as long as the residence permit is valid. Beneficiaries must have a tangible presence in Malta.
Requirements
- Must be Non-EU national
- Purchase or rent property in Malta.
- Have a concrete intention to develop and/or expand his/her business in Malta;
- Be the founder or the co-founder of an enterprise, which has been registered for not more than 7 years anywhere globally (including Malta)
- Must be 18 years and older;
- The incorporated Startup in Malta is required to place a tangible investment and/orpaid-up share capital of not less than €25,000and an additional €10,000 per co- founder.
- Any founder and/or co-founders benefitting from this programme needs to have a physical and tangible presence in Malta.
- Have recognised health insurance covering risks in Malta for himself/herself and dependants;
- Be in possession of sufficient financial resources to support himself and any other dependents;
- Have no criminal record or pending criminal charges.
- Must not have previously had an application for residence status or citizenship rejected in Malta or abroad
Malta Permanent Residency Programme (MPRP) for Non EU Nationals
This programme is for non-EU nationals where applicants and their dependents are offered the opportunity to acquire indefinite residential status in Malta.
The programme is managed by Malta Identita, whose role is to examine applications and issue certificates where all criteria requirements are met
Requirements
- Property: You can purchase or rent. A minimum purchase of € 350 000 in the North or € 300 000 in the south. Rental of € 12 000pa in the North or € 10 000pa in the South
- A non-refundable government contribution of € 68 000 if property purchased and € 98 000 if you are renting a property
- Donation of € 2 000 to a local registered NGO
- Health insurance: All risks covering you in the EU
Citizenship (Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment process) (MEIN)
In November 2020 Malta officially launched it’s latest programme which allows foreign nationals the opportunity to obtain Maltese and EU Citizenship.
This programme allows for the grant of citizenship to duly qualified, reputable foreign individuals and families (EU and non-EU nationals) who make a significant contribution to the economic development of Malta.
The main applicant must be at least 18 years of age and may also add to a citizenship application for his/her spouse, as well as children and parents or grandparents, given that certain conditions are met.
Requirements
A property Investment:
Buy a property for € 700 000 which has to be retained for 5 years from the time certificate is attained
or
Rent a property for € 16 000 per annum also to be retained for 5 years from the time the certificate is attained
A contribution to government:
Standard track; requires residency for 36 months before applying for citizenship
- € 600 000 for the main applicant
- € 50 000 for each dependent
Fast track: requires residency for 12 months before applying for citizenship
- € 750 000 for the main applicant
- €. 50 000 for each dependent
A donation:
€ 10 000 to a registered philanthropic, cultural, sport, scientific, animal welfare or artistic NGO
Retirement Programme for EU Nationals and Non EU Nationals
As of 2020 Non EU nationals are now eligible for this programme
By taking up the Malta Retirement Programme (MRP), beneficiaries will be able to benefit from a tax rate of 15% on any income arising outside Malta which is received in Malta by the beneficiary or dependent, with the possibility to claim relief of double taxation.
It is ideal for retirees, or persons reaching retirement age, who are looking at taking up residence in a country that offers them the best in terms of climate, lifestyle, health services and peace of mind, whilst also providing very favourable tax benefits.
Requirements
- Property:
Purchase a property for € 275 000 in Malta or € 250 000 in Gozo
or
Rent a property for € 9 600 in Malta or € 8 750 in Gozo
- Pension: Applicants must be in receipt of a pension as supported by documentary evidence, all of which is received in Malta and constitutes at least 75% of the beneficiary’s chargeable income.
- Stay requirements: Applicant must reside in Malta for not less than 90 days a year, averaged over any five year period. He may not stay in any other jurisdiction for more than 183 days in a calendar year.
- Health Insurance: All risks covering you in the EU
Tax:
Tax is charged at a rate of 15% on any income arising outside of Malta which is received in Malta by the beneficiary, with the possibility of claim relief of double taxation
There is however a minimum tax payment required of € 7 500 per annum in resect of the beneficiary and € 500 per year for the dependent.