The Residency Malta Agency recently announced significant changes to the Malta Permanent Residence Programme (MPRP), effective January 1, 2025. These updates, outlined in Legal Notice 310 of 2024, aim to enhance the program’s competitiveness while aligning investment requirements with current economic trends. Understanding these updates is crucial for those considering obtaining their ‘Golden Visas’ in Malta through this residency-by-investment program.
What Will Be Changed?
The MPRP has been a popular choice for affluent individuals and families seeking European residency. To maintain its reputation as a robust and reputable program, Maltese authorities made legislative amendments to reform the program. Residency Malta Agency, the governmental body in charge of the MPRP operation, has revealed the adjusted eligibility criteria and fees. These changes reflect the evolving market landscape and ensure the program continues to attract top-tier applicants.
Eligibility Criteria: MPRP requires applicants to demonstrate assets worth at least €500,000, of which €150,000 must be in financial assets. However, starting from 2025 applicants can alternatively, present assets worth at least €650,000, and only with €75,000 as financial assets.
Dependent Rules: Adult children between 18 and 29 years old can be included as dependents if they are unmarried and financially dependent on the main applicant. However, different rules apply to adult children under specific dependent clauses.
Standardized and Increased Real Estate Investment Requirements:
MPRP Applicants must make a qualifying investment in real estate, contribute to a government fund, and donate to a non-governmental organization (NGO).
Until the end of 2024, for real estate, purchasing a property requires a minimum investment of €300,000 in the South of Malta or Gozo. Elsewhere the threshold starts at €350,000. Alternatively, renting options include annual rent of at least €10,000 in the South or Gozo or €12,000 in the rest of the country.
Additionally, applicants must pay a non-refundable contribution of €28,000 (plus €7,500 per dependent parent) if buying property, or €58,000 (plus €7,500 per parent) if renting.
An administration fee of €40,000 and a €2,000 donation to a registered non-governmental organization are also required. Other costs include medical insurance and legal fees such as translations and notary services. Investments must be maintained for at least five years, after which the real estate can be resold.
In 2025 there will be standardized and increased investment requirements:
For purchasing a property, the minimum purchase price will be €375,000, applicable everywhere in the country. As per the renting option, the minimum annual rental fee will start from €14,000.
Revised Fees
The revisions introduce higher fees for both the main applicant and dependents.
Main Applicant Fees: MPRP main applicants will have to cover an administration fee of €50,000 (which will be a €10,000 increase from the existing amount). An initial €15,000 will be due within one month of submitting the application, while the remaining €35,000 must be paid in two months of receiving the Residency Malta’s Letter of Approval in Principle.
Additionally, applicants must consider further contributions based on their property choice. For purchased properties, a contribution of €30,000 is required. For rented properties, this amount increases to €60,000. In both cases, the increase will hit €2,000. The contribution must be settled within eight months of receiving the Letter of Approval in Principle.
Dependent Fees: New fees apply to dependents, including spouses, children, parents, and grandparents. Each dependent requires a total payment of €10,000. This includes a €5,000 non-refundable administration fee, which must be paid within two months of receiving the Letter of Approval in Principle if they are added at the time of application. The remaining €5,000 contribution is due within eight months of receiving the same letter. If you add a dependent after the residency certificate has been issued, both fees must be paid when you submit their application.
Considerations for Potential Applicants
While the cost increase may seem substantial, the enhancements ensure the MPRP retains its reputation for robust due diligence and quality applicants. Residency Malta agency has pledged to streamline internal processes, reducing processing timelines without compromising the program’s integrity.
For prospective investors, applying before the end of 2024 offers a clear advantage: existing applications will be processed under the current, lower thresholds and fees. Those considering the MPRP should act quickly to benefit from these cost savings. As the January 2025 deadline approaches, potential applicants and advisors must carefully assess these updates to make informed decisions.
MPRP vs MEIN: Choosing the Right Path – Residency or Citizenship
Along with the MPRP, there is in operation the Malta Exceptional Investor Naturalization (MEIN), which is a citizenship by investment program offering Maltese passports in 12 or 36 months. This “golden passport” scheme has four-tier due diligence, ensuring only applicants of impeccable reputation are accepted. The program is administered by the Community Malta Agency.
MEIN applicants must contribute €600,000 (for citizenship after 36 months of residency) or €750,000 (for citizenship after 12 months), plus €50,000 for each family member. They must also maintain a property in Malta for at least five years—either purchasing one worth at least €700,000 or renting at an annual minimum of €16,000, with subleasing prohibited. Before applying for citizenship, investors need a Residence Permit. The permit costs €5,000 for the main applicant and €1,000 per family member. Applicants must also donate €10,000 to a local NGO.
Once residency is approved and the card issued, citizenship applications can be submitted, choosing between the 12 or 36-month residency options.
Compared with MEIN, the MPRP is relatively cheaper and offers just residency rights, while MEIN provides direct citizenship. The MEIN program is tailored for high-net-worth individuals looking to acquire a European passport.
Contrary, the MPRP provides a renewable residency status. It offers access to Malta’s healthcare, education, and business environment, along with the right to travel freely within the Schengen Area.
The MPRP is an attractive option for those seeking a relatively quick and secure EU residency pathway. On the other hand, the citizenship process under MEIN is longer and more intensive. However, the ultimate reward—a Maltese passport—offers unparalleled benefits in terms of global mobility and rights within the EU.
Conclusion
The changes to the MPRP reflect Malta’s commitment to maintaining a high standard, competitive program that attracts quality investors. Whether you choose the MPRP for its residency benefits or the MEIN for full citizenship, both programs offer strategic opportunities for investors seeking a foothold in Europe. As the 2025 deadline approaches, understanding these nuances will help applicants make informed decisions aligned with their long-term goals.