Malta Permanent Residency Program (MPRP) Announces Major Updates: Cost Increases and Policy Adjustments

On November 19, 2024, Residency Malta Agency issued an official notice introducing significant changes to the Malta Permanent Residency Visa Program (MPRP). The new regulations, which include cost increases and revised requirements, aim to address local concerns while maintaining program integrity. Below is a detailed breakdown of the key updates:

Application Requirements

• Net Asset Declaration

Applicants must declare net assets of either €500,000, with at least €150,000 in financial assets, or €650,000, with at least €75,000 in financial assets. 

Interpretation: This change offers flexibility for applicants with high-value real estate but limited liquid funds, while aligning closely with the previous requirements. 

• Dependent Eligibility

The principal applicant or their spouse’s dependent children, aged 18 to 29, unmarried, and financially dependent on the principal applicant, may be included. Dependents who are overage and unable to live independently are excluded.

Interpretation: An upper age limit of 29 years has been introduced for accompanying children, requiring them to be unmarried and financially reliant.

Real Estate Requirements

• Property PurchaseThe minimum purchase price has increased from €300,000 to €375,000
• Property Rental The minimum annual rent has increased from €10,000 to €14,000

Interpretation: These adjustments address concerns about local housing affordability, as MRVP applicants have reportedly occupied a significant portion of low-cost housing stock.

Investment Requirements

• Government Fees

The standard application fee has increased from €40,000 to €50,000, with an additional €10,000 per dependent payable after initial approval. 

• Government Donations

  – Property Purchase Option: A €30,000 donation is required. 

  – Property Rental Option: A €60,000 donation is required. 

Interpretation: The application fee for single applicants has risen by €10,000, with an extra €10,000 charged per additional applicant. 

Payment Structure

The upfront submission fee has increased from €10,000 to €15,000, with other fees remaining payable post-approval. 

Increased Overall Costs

• Rental Model Example

  – Single Applicant: €50,000 application fee + €60,000 donation = €110,000 total. 

  – Family of Three: €50,000 application fee + €20,000 (spouse and child fees) + €60,000 donation = €130,000 total. 

  – Additional Cost Consideration: A €4,000 annual rent increase over five years equals €20,000, pushing the overall increase to at least €30,000 for rental applicants.

Implications

The adjustments reflect Malta’s effort to balance the appeal of its residency program to foreign investors with the need to safeguard housing affordability for local residents. Applicants should carefully assess these changes to account for the higher financial requirements and stricter dependent eligibility criteria. 

The updated regulations are expected to impact the cost-benefit analysis for prospective applicants, emphasizing the importance of professional advice in navigating these new rules.

Source:

Malta Permanent Residence Programme