Implementation of the European Entry-Exit System (EES)

1. Immediate Residency Upon Application

Malta Permanent Residency Program (MPRP) has announced that immediate residency will be granted to anyone upon application. The residency will be valid for one year and renewable. However, investors are required to pay an initial administrative fee of €15,000.

The process involves the applicant’s representative completing all required documents. The Maltese Residency by Investment Unit will review the investers application and send a request for administrative payments. Once these steps are completed, a temporary residence permit will be issued.

These changes will help give families the freedom to reside longer and more quickly, especially for those who wish to explore educational options or search for properties with the assistance of the Royal Malta Estates Administration (RMA), after which the permanent residence permit will be issued.

2. Immediate Rental of Property and Income Generation

Real estate laws under the Malta Permanent Residency Program (MPRP) have been updated to allow for immediate rental of property after purchase if the investor chooses to invest in real estate to obtain permanent residency in Malta.

This move is consistent with the laws of the Cypriot and Greece Residence by Investment Programmes, allowing investors to benefit from the significant financial return of renting the property while awaiting approval, also to  reduce the fixed costs of the program.

3. Eligibility to Rent Property to a Third Party

The recent changes stipulate that investors who choose the lease option instead of purchasing the property will be able to rent it to a third party after five years, provided the new lessor is not another applicant for the Malta Permanent Residency Program and with the landlord’s approval.

In addition, applicants may rent a property from a landlord who uses it for short-term rentals. These two recent updates add value to the lease and purchase options, respectively.

4. Reducing Malta Permanent Residency Program (MPRP) Cost

The Malta Permanent Residency Program (MPRP) has introduced a special pricing structure for families to reduce costs. The government has taken steps to reduce costs for families, enabling them to enroll their children in the Maltese education system and establish long-term roots. The following sections explain the changes to the program’s pricing structure.

· Malta Permanent Residency Program (MPRP) Contribution

The program’s costs have been standardized in terms of contributions. Previously, applicants paid €60,000 for rent and €30,000 for property purchase. Now, the costs have been standardized to €37,000, regardless of payment method. This is a particular advantage for those who choose the rental option, as they will save approximately €23,000 compared to the previous cost.

· Malta Permanent Residency Program (MPRP) Dependent Fees

The program has eliminated the €10,000 cost for adding a spouse or minor children. The fee for additional adults has also been reduced to €7,500, providing a new advantage for families applying for European residency by investment.

·  Malta Permanent Residency Program (MPRP) Administrative Fees

The €60,000 administrative fee is payable in two installments: the first €15,000 at the start of the application, as mentioned, and the second €45 after the application is approved. Administrative costs for each additional dependent, excluding the spouse, are €7,500, and €7,500 for each additional dependent added after the certificate is issued.

Taking into account the family contribution of €37,000, the capital required to obtain Maltese residency for families is approximately €100,000, in addition to the purchase or rental of a property.

5. Change in the Issuance of Powers of Attorney

The responsibility for issuing powers of attorney has been transferred from the Malta Community Agency to the Malta Permanent Residency Program (MPRP). This means that the Residence Unit will be directly responsible for these permits.

The current permit is valid until the end of 2025 to allow agents time to adapt to the new regulations. The Asset Management Authority will release new application forms and additional information on this topic in the coming weeks.

6. Other updates on Malta Permanent Residency Program (MPRP):

• Applicants must submit all documents within six months of the application date.
• If the application is approved, the permit will be converted into European Permanent Residency.
• If the application is rejected, the temporary residency permit will be revoked 15 days after the decision is issued.
• Parents and grandparents must not be working full-time to be eligible.

If you have any questions about the Malta Permanent Residency Program (MPRP) or any of the Citizenship by Investment and Golden Visa programs, contact one of our experts and benefit from our free consultation.