Country Update 2024: MALTA

Contributed by: Chetcuti Cauchi Advocates

May 2024

1. Legislative Changes

The Maltese government has implemented several legislative initiatives aimed at enhancing the existing National Immigration Law framework. 

Legal Notice 57 of 2024 – under the act some amendments have been introduced with the objective of bolstering the authority of Residency Malta Agency overseeing immigration matters under the Malta Permanent Residency Program:

• Dependants may be exempted from mandatory health insurance provisions if they do not apply for a residence card. 

• Residency Malta is empowered to suspend benefits associated with a certificate during ongoing investigations. 

• The Agency is authorized to share information with other relevant authorities vested with the authority to request such information. 

Legal Notice 56 of 2024 amended regulations pertaining to the Malta Residence and Visa Programme, whereby: 

• Residency Malta retains the discretion to revoke or withhold residency cards in cases where dependants lack valid health insurance coverage. 

• The Agency is granted discretion to extend application deadlines, subject to a demonstration of compelling circumstances. 

Legal Notice 78 of 2024 - introduces the Skills Pass Test. Its purpose is to guarantee that individuals employed in the tourism and hospitality sector meet the essential national standards as stipulated by the relevant stakeholders. The implementation of the Skills Pass Test is being done gradually and is currently only applicable to third country nationals. However, by January 2026, all employees in the local industry, including Maltese, EU, and EEA workers, will be required to hold the Skills Pass. 

2. Business Immigration

2.1 Business visitors

2.1.1 Start-Up programme

Scope

Having an innovative regulatory framework, utilizing English as the primary language for business, access to proficient and cost-effective human resources with multilingual capabilities, convenient flight connections to key European cities, and a robust telecommunications infrastructure are vital prerequisites granted in Malta, when starting a business.

Benefits

Long term business and family stability in Malta for TCNs, without the standard requirement of investing a minimum of €500,000.

Obtaining Maltese residence card, granting visa-free travel across the Schengen Area, valid for 3 years extendable for an additional 5 years.

Eligibility criteria

The successful applicant must be a non-EU national and at least 18 years of age. The applicants would be (co)founder/s of an enterprise which hasn’t yet been registered for more than seven years anywhere globally and should have a concrete intention to develop and/or expand the business in Malta. The founders are required to demonstrate physical and tangible presence in Malta and settle their taxes in Malta. Furthermore, the start-up must have NOT:

− yet distributed profit.

− been formed through a merger.

− taken over the activity of another enterprise.

Certain applicants are ineligible to apply based on having close personal or professional ties with specific jurisdictions, such as Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela.

Applicants must be covered by a health insurance covering risks in Malta, be in possession of sufficient financial resources to support their stay in Malta and rent or purchase a property in Malta.

Investment requirements

The incorporated Start-Up in Malta is required to:

− Place a tangible investment or have a paid-up share capital of not less than €25,000.

− This investment covers up to 4 co-founders. An additional €10,000 investment is to be made per additional investor. The maximum number of co-founders eligible to apply under the programme shall not exceed 6.

− Submit a business plan, to be approved by Malta Enterprise (the country’s investment agency).

− Eligible start-ups must be engaged in one or more of the following activities: Software development, manufacturing or industrial services analogous to manufacturing, health, biotechnology, pharmaceuticals, and life-sciences,  eco start-ups involved in the blue, green and sustainable industries or other innovative economic activities which are enabled through knowledge and technology providing services or products which are currently not readily available in the relevant market, or which shall be provided through a process which is novel. 

Start-Ups must also meet at least two of the following criteria:

1) Propose products or services that have the potential to generate income from various geographical markets.

2) Produce products or services which are new, innovative, or substantially improved compared to other products in the market.

3) Utilise processes which are new or substantially improved compared to those adopted in current complementary activities.

2.2 Temporary Immigration categories

2.2.1 Malta Nomad Residence Programme (NRP) 

Scope 

The aim of the Malta Nomad Residence Permit (NRP) is to grant non-EU nationals the right to live in Malta whilst maintaining their employment or business activities in another country. The NRP is open for digital nomads who can work remotely using telecommunication means. The right to reside in Malta is given either in the form a residence permit or in the form of a national visa depending on the intended duration of stay.

Benefits 

By obtaining a residence card under the Malta Nomad Residence Permit, applicants are also entitled to travel within the Schengen Area without a visa for 90 days in a 180-day period.

2024 Amendments 

• New Applicants for a Nomad Residency permit will have to show proof of a minimum annual gross income of €42,000 instead of the previous €32,400. This adjustment does not affect current beneficiaries of the permit who are applying for a renewal, and neither does it affect applicants that have submitted their application prior to the 1^st of April 2024. 

• Furthermore, beneficiaries of this permit can apply for a third renewal, therefore providing them with a maximum stay of four years in Malta. Previously, applicants applying with the use of the Nomad Residency permit could only hold a permit for three years. 

Eligibility criteria

✓  Applicants must be non-EU nationals and earn a gross monthly income of €3,500.

✓  Conduct business activities for a company registered outside of Malta and of which the applicant is a partner or a shareholder, (minimum 6 months) 

✓  Work for an employer registered in a foreign country and have an employment contract, (minimum 3 months) 

✓  Offer freelance or consulting services to clients whose permanent establishments are in a foreign country, and with whom the applicant has contracts. (Minimum 3-6 months) 

✓  If a prospective applicant has a contract with a foreign employer but will be offering services to a Maltese subsidiary company, the applicant will not be eligible to apply for the Nomad Residence Permit. 

✓  In total, an applicant must have a minimum gross yearly income of €42,000.

2.3 Employment-based immigration (work and residence permits)

2.3.1 Different Forms of Work Permit applications found under Maltese Law. 

• Single permit applied from Malta or whilst still abroad. 

• Single permit applied under the Key Employee Initiative (applied from Malta and still abroad). 

• Single permit applied under a household employee scheme. 

• Single permit applied for employment (under 6 months). 

• Single permit applied for an Intra Corporate Transfer (ICT). 

• Single permit applied under Change in designation/ Change in employer. 

2.3.2 Introduction of the Skills Pass test 

Scope  

The skills pass was recently introduced to ensure that employees meet the minimum standards as required to be high-level employees within the industry they are employed in. Some of these minimum standards include the verification of an applicant’s level of proficiency in English, knowledge of the work being done by the applicant, knowledge about the Maltese islands as well as the Maltese product on offer.   

This test will be done in two phases, with phase one being an online registration and an initial test on the skills of the applicant, whilst phase two consists of a recorded online interview. Applicants will not know the questions that will be asked to them prior to the interview being held.  

Benefits 

The biggest benefit of the skills pass is to ensure that everyone who is employed within the tourism and catering industry is properly trained and equipped to work within the Maltese islands.  

Eligibility criteria 

At present, third country nationals intending to work in Malta's tourism and hospitality sector must undergo this test. Starting January 2025, all workers in the tourism and hospitality industry who need to renew their work permits must also acquire a skills pass. By January 2026, all remaining employees, including Maltese and EU/EEA nationals, will also be required to obtain a skills pass. 

2.4 Highly Skilled immigration (Blue Card etc)

2.4.1 Launch of specialist employee initiative

Scope  

2024 saw the launch of the Specialist Employee initiative (SEI) in Malta. This is a program whose aim is to attract skilled professionals deriving from third country to work and reside in Malta. This initiative, which is limited to professionals who hold specific qualifications or experiences, offers an expediated process for such applications. The residence permit received by the applicant must be renewed on a yearly basis, and the permit can be renewed as long as the employee keeps on meeting the eligibility criteria imposed. 

Benefits 

The main benefit deriving from this initiative is the increase in skilled employees working within sectors that require people to hold certain qualifications. Malta has had a lack of such skilled employees in the past, and the aim of this initiative is to tackle this issue by bringing into Malta third country nationals with the necessary skills to reduce this lack of skilled employees. 

Eligibility criteria 

• The applicants must be in possession of a MQF level 6 or higher, in an area directly related to the employment position.  

• If the applicant does not hold such a degree, they can have other qualified skill qualifications along with a minimum of three years’ experience in a position which is directly related to the one being offered in Malta. 

• An annual gross salary of at least €25,000 per annum 

• Only non-EU nationals can apply for this initiative. 

2.5 Investment-based immigration (Investors/Entrepreneurs)

2.5.1 Malta Permanent Residence Programme (MPRP)

Residency cards are issued for 5 years and are renewable indefinitely provided the investor maintains a Maltese address and all other Programme requirements and eligibility. The MPRP is based on a property investment (rental or purchase), together with the payment of a contribution to the government and a donation of €2,000 to charity. 

To be eligible for the programme, the applicant must show that he is in possession of €500,000 in capital, of which €150,000 must take the form of financial assets, such as bank deposits or stocks. 

Amendments  

Under Legal Notice 57 of 2024, amendments have been introduced with the objective of bolstering the authority of Residency Malta Agency overseeing immigration matters under the Malta Permanent Residency Program. Notably: 

1. Dependants may be exempted from mandatory health insurance provisions if they do not apply for a residence card. 

2. Residency Malta is empowered to suspend benefits associated with a certificate during ongoing investigations. 

3. The Agency is authorized to share information with other relevant authorities vested with the authority to request such information. 

2.5.2 Malta Retirement Programme (MRP)

These Special Tax Status programmes continue to exist and attract individuals whose main goal is to remit large amounts to Malta. One is to distinguish the Special Tax Status obtained under these programs, from the concept of tax residency. 

Requirements 

• €6,000 Official Government fee 

• Qualifying Property purchase €275,000/ OR property rental €9,600; and 

• €15,000 annual minimum tax 

The applicant must declare that he/she does not spend more than 183 days in any other jurisdiction apart from Malta. TRP/GRP beneficiaries are taxed at a flat rate of 15% on foreign income remitted to Malta. 

2.5.3 Malta Retirement Programme (MRP) 

This programme designed to attract foreign pensioners who seek to relocate to Malta. Individuals benefitting from this Programme may hold a non-executive post on the board of a company resident in Malta. 

Requirements: 

• be in receipt of a pension, all of which is received in Malta and constitutes at least 75% of his chargeable income.  

• Not a person who holds Special Tax Status under the available programs. 

• Not a Maltese national. 

• Qualifying property as a principal place of residence worldwide. 

• In receipt of stable and regular resources. 

• Private Health Insurance. 

4. Family based immigration

Family reunification processes are implemented by means of Subsidiary Legislation 217.06 which legislation is transposing the provisions of the European Union Directive 2003/86 and the policy which will be outlined hereunder. 

4.1 Family reunification under Subsidiary Legislation 217.06

Eligibility Criteria

The sponsor should have reasonable prospects of permanent residence and stable resources which would enable him/her to maintain himself and his family members after six (6) months of residency in Malta. Moreover, he or she must have a valid residency permit in Malta and must fulfil the relevant requirements pertaining to the application.

Benefits

• Right to Reside in Malta

• Right to enter the Schengen

Financial Requirements

As per the Regulation, the average wage requirement would be an annual income of €18,660 with an additional 20% of the said median wage for each family member.

4.2 Family Member Policy

Policy on family members of third-country nationals who do not qualify for family reunification by means of the Family Reunification Regulations S.L. 217.06

Benefits

• Right to Reside in Malta

• Right to enter the Schengen

Eligibility criteria

The policy applies to persons who are legally residing in Malta after having been granted a residence permit, who wish to act as sponsors and have their family members joining them in Malta. The sponsor is to submit an application for his family members after 12 calendar months from the date of issue of his/her first residence permit. Any applications before such a timeframe will be deemed inadmissible.

The policy does not, however, apply to:

• EU Citizens and their family members, including TCNs who have free movement in the EU;

• Refugees, persons granted subsidiary protection, persons granted SRA (Specific Residence Authorization) status or TCNs who have applied to obtain such status. 

• Beneficiaries of any other form of protection or status as provided for in international obligations, national legislation, or policies. 

• TCNs whose residence authorizations will not be extended beyond the period of one year.

Financial Requirements of the Sponsors to be eligible for the application

✓ 1 Child + 2 Working parents: € 21,495.60 yearly net income.

✓ 2 Children + 2 Working Parents € 24,566.40 yearly net income.

✓ 3 Children + 2 Working Parents € 27,637.90 yearly net income.

✓ Spouse € 18,424.80 yearly net income.

5. Asylum

With respect to matters concerning asylum, there have been minor amendments to the law. The addition of Article 37 in the Immigration Act now empowers the minister to amend, substitute, or annul regulations pertaining to areas recognized as part of the Malta exclusive economic zone.

6. Deportation

While no major legal developments have occurred, this year witnessed a slight increase in deportations, with the Malta Immigration Police Force deporting 1,391 third-country nationals from Malta in 2023, as confirmed by Home Affairs Minister Dr. Byron Camilleri. 

7. Citizenship

Established in 2020, Aġenzija Komunità Malta was formed to ensure that the processes involved in granting citizenship through economic investment and applicants for Citizenship by marriage, descent, and registration as well as Naturalisation are all processed within the same Agency. The Agency is responsible for the administration and processing of citizenship-related matters, including the acceptance and evaluation of applications for Maltese citizenship through birth, registration, naturalization based on long-term residence, exceptional merit, and direct investment in Malta.

Beyond its core functions, Aġenzija Komunità Malta is dedicated to fostering economic growth and social development in Malta. By promoting initiatives that attract investment and contribute to the nation's prosperity, the Agency aims to enhance Malta's position on the global stage.

Suspension of Submission and Processing of Applications made by Russian and Belarusian Nationals on the Basis of Investment

As a result of Russian invasion of Ukraine, the existent due diligence checks cannot be carried out effectively in the current scenario. Consequently, Community Malta Agency and Residency Malta Agency have suspended, until further notice, the processing of applications for the above-mentioned statuses from nationals of the Russian Federation and Belarus.

The Community Malta Agency initiated citizenship revocation processes against applicants who are subject to OFAC sanctions.

7.2. Citizenship Case Law

The Maltese Government has been exchanging views with the said Commission on the acquisition of citizenship by investment, regarding the allegation that such avenue for the grant of Maltese citizenship is a matter of national competence with the Commission adamantly insisting that such competence is not unlimited, notwithstanding that the government has provided the legal arguments that prove otherwise. Below are most notable cases outlining the national competence of the country when it comes to the citizenship matters.

Micheletti Case Summary - Mario Vicente Micheletti and Others vs Delegacion del Gobierno en Cantabria (Regional Office of the Ministry of the Interior)

The case involves Mr. Micheletti, who held dual Argentine and Italian citizenship and sought permanent residency in Spain as a dentist. Spain denied his application based on its law regarding habitual residence that states that in cases of dual nationals, the country of habitual residence of the individual is used as a yardstick.

The European Court of Justice (ECJ) ruled that while member states regulate nationality, they must respect EU law. Spain must recognize Italian nationality laws allowing acquisition through descent. The ECJ emphasized that a Member State cannot impose additional conditions on another Member State's nationality for exercising fundamental EU freedoms.

Rottmann Case summary (Case C135/08)- Janko Rottmann v Freistaat Bayern

An Austrian national moved to Germany, became a German citizen, and lost his Austrian nationality according to Austrian law. Later, German authorities revoked his naturalization due to alleged deception in not disclosing a criminal investigation in Austria for suspected serious fraud. The European Court of Justice ruled that a Member State can withdraw nationality obtained by deception, even if it leads to loss of EU citizenship, if it follows the principle of proportionality. This principle requires giving the individual a reasonable opportunity and time to reclaim their original nationality.

Zambrano Case Summary (Case C-34/09) Gerardo Ruiz Zambrano, v Office national de l’emploi (ONEm)

Mr and Ms Zambrano, of Colombian nationality, were refused refugee status in Belgium but were not sent back to Colombia on account of the civil war in that country. From 2001, Mr and Ms Zambrano were then registered as resident in Belgium and Mr Zambrano worked there for a certain time, even though he did not hold a work permit. Mr and Ms Zambrano had two children – one born in 2003, the other in 2005 – who acquired Belgian nationality in accordance with the Belgian legislation applicable at that time. The competent authorities refused to accede to Mr and Ms Zambrano’s application to regularise their situation and to take up residence as ascendants of Belgian nationals.

The CJEU ruled that Article 20 of the TFEU prohibits a Member State from denying a work permit and residency rights to a third-country national if their minor children, who are nationals and residents of that Member State, depend on them. Such decisions would deprive these children of the genuine enjoyment of the rights associated with EU citizenship.