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

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.

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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.

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Requirements

Self Employed

Capital expenditure

  • Fixed assets € 500 000 (such as immovable property, plant and machinery) used for business purposes. Rental contracts do not apply

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

Work for ones own company

  • Fully paid up share capital  € 500 000 and may not be redeemed or transferred for 2 years
  • Capital expeniture
  • Fixed assets € 500 000 (such as immovable property, plant and machinery) used for business purposes. Rental contracts do not apply
  • The company is a sole representative of an overseas company established at least 3 years abroad.

The Global Residency Programme

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.

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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 1 jurisdiction

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.

New Malta Residency and Visa programme ( MRVP)

Changes are being made to this programme and soon to be legislated

Malta Permanent Residency Programme (MPRP)

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 Identity Malta, whose role is to examine applications and issue certificates where all criteria requirements are met

Read more on Residency requirements

Requirements

Contribution

Old requirements were a € 30 000 non refundable contribution

New requirement

A non-refundable government contribution which is dependent on whether the main applicant chooses to rent or purchase a property in Malta.

1. Should the applicant choose to purchase property, the contribution is set at €68,000;

2. If the applicant wishes to rent a property, the contribution is set at €98,000.

The government contribution is to be settled as follows:

The first €10,000 are payable within 1 month from the date of submission of the application.

A second payment amounting to €30,000 is payable within 2 months from the issuance of the Letter of Approval in Principle.

The rest of the contribution is payable within 8 months from the issuance of the Letter of Approval in Principle;

Property

Old requirement of either purchasing a property of € 320 000 in the north of Malta and € 270 000 in the south of Malta and Gozo

Or alternatively renting for € 9 600 per year in the north of Malta or € 8 700per year in the south of Malta and Gozo

New requirement

Leasing a property for a minimum value of €12,000 per annum OR purchasing a property for not less than €350,000 if in the North of Malta.

Should the property be situated in Gozo or in the South of Malta, the minimum rental value must be of €10,000 per annum while the minimum purchase value must be of €300,000.

The property must be kept for at least 5 years from the date of issuing of certificate;

Qualifying investment.

This was on the old system where you need to put € 250 000 in government bonds for a period of 5 years. You do get it back after 5 years with minimal interest.

New requirement Donation
A donation of €2,000 is to be made to a local registered NGO

Other requirements:

The main applicant must have a minimum capital of not less than €500,000, of which €150,000 should be financial assets ( this is required at the start of your application but these monies could be used when buying property etc)

The main applicant and the dependants must be covered by adequate health insurance.

Application Fee

  • €5,500, which is non-refundable and constitutes a part payment of the contribution.

Health Insurance

  • Health insurance is required in respect of all risks across the whole of the European Union for applicant and dependents.
  • The certificate issued under these regulations shall be monitored annually for the first five years and every five years thereafter.

Citizenship (Maltese Exceptional Investor Naturalisation Programme)(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.

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Requirements

3 tier Investment

  • A contribution to government
  • A property Investment
  • A donation to a non-governmental organisation

Financial Contribution

Applicants may opt for one of two routes

Standard Route:

Requires residency for 36 months before applying for citizenship

  • € 600 000 for the main applicant
  • €   50 000 for each dependant

Expedited Route:

Requires residency for 12 months before applying for citizenship

  • € 750 000 for the main applicant
  • € 50 000 for each dependant

Property

Buy property

  • € 700 000 This has to be retained for 5 years from the date of the certificate of Citizenship

or

Rent property

  • € 16 000 per year

Donation

  • € 10 000 to a registered philanthropic, cultural, sport,scientific,animal welfare or artistic NGO

Processing Fees:

Aside from the above investment criteria payment is required for th following resident, due diligence and administrative fees;

Residence Fees:

  • € 5 000 for the main applicant
  • € 1 000 for each dependant

Due Diligence Fees:

  • € 15 000 for the main applicant
  • € 10 000 for adult dependants over 18 years of age

Administrative Fees:

During application administrative fees will have to be paid to the Community Malta Agency (“Agency”)

  • € 10 000 non- refundable deposit with the main investment
  • € 15 000 due diligence fees

Retirement Programme

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.

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Requirements

Property

Buy property

  • € 275 000  If in Malta
  • € 250 000 If in Gozo

or

Rent property

  • € 9 600 per year if in Malta
  • € 8 750 per year if 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

  • Applicant must be in possession of health insurance in respect of all risks across the whole of the EU normally covered for Maltese nationals, for himself and his dependants

Application fee

  • € 2 500 is charged for each application

Tax

  • Tax is chargeable at the 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.
  • Minimum amount of tax payable in terms of this scheme for any year of assessment shall amount to €7,500 in respect of the beneficiary and €500 per year for every dependent.
  • Income of a beneficiary or dependent not falling under the scheme, shall be charged as separate income at the rate of 35%

Other conditions

  • Applicant must not be domiciled in Malta and he does not, within five years from date of application, intend to establish domicile in Malta.