For South Africans considering a move to Malta, there are several residency pathways available that can provide either temporary or permanent residence in this fascinating Mediterranean country.
Malta, a beautiful Mediterranean archipelago, has become an appealing destination for South Africans seeking a new residence. With its treasured history, strategic location and a resilient economy, Malta offers numerous rewards for those looking to relocate. Here are some of the key advantages of obtaining Maltese residence for South Africans.
1. Quality of Life
Malta offers a high quality of life with low crime rates, excellent healthcare and education, a warm Mediterranean climate, and a vibrant expat community. The country's diverse culture, strong focus on family values, and English-speaking environment make it an attractive option for South Africans seeking a peaceful yet active lifestyle.
Climate: Malta enjoys a pleasant Mediterranean climate with over 300 days of sunshine per year. The mild winters and hot summers are a significant draw for South Africans.
Safety: Malta is one of the safest countries in Europe, with low crime rates and a strong sense of community, making it an ideal place for family well-being.
Healthcare: The Maltese healthcare system is highly regarded, offering both public and private healthcare services which are often ranked among the best in Europe.
2. Economic Opportunities
Growing Economy: Malta's economy is diverse and growing, with strong sectors in finance, gaming, tourism and technology. This offers a range of job opportunities for expatriates.
Business Environment: Malta provides an appealing business environment with competitive tax rates, numerous incentives for foreign investors, and a robust regulatory framework. This makes it an desirable destination for South Africans looking to start or expand their businesses.
Access to EU Market: As a member of the European Union, Malta offers access to the EU single market. This provides South African entrepreneurs and businesses with significant opportunities for trade and expand within Europe.
3. Education
Quality Education: Malta offers a high standard of education, with a range of international schools, private schools, public schools, as well as reputable universities and vocational institutions. This is ideal for families with school-aged children or young adults pursuing higher education.
Multilingual Environment: Maltese and English are the official languages of Malta. The prevalence of English in Malta simplifies the transition for South Africans, making it easier to integrate and adapt into society and form social connections.
4. Travel and Mobility
Individuals seeking to expand their business networks or enjoy travel opportunities across Europe have chosen Malta since it is centrally located in the Mediterranean, providing convenient access to both mainland Europe and North Africa.
Schengen Area Access: Maltese residence cards allow travel within the Schengen Area for a maximum of 90 days in every 6 months. This is a significant benefit for South Africans who wish to travel frequently within the Schengen Zone for business or leisure.
5. Malta's Personal Tax Regime
Malta offers a favourable tax regime with various benefits for residents. These include no inheritance tax, no wealth tax, and a remittance and source basis of taxation for individuals who are resident but not domiciled in Malta. This can be particularly advantageous for South African expatriates looking to optimize their tax status.
Maltese Residency Programmes for South Africans
Option 1: Global Residence Programme (GRP): This residence-tax programme offers non-EU nationals, including South Africans, the opportunity to obtain a special tax status and residency in Malta. The GRP requires an annual minimum tax payment and an investment in real estate making it a viable option for those who wish to benefit from the special tax rate of 15% on any foreign income remitted to Malta. A summary of the requirements is outlined below:
- Settle a one-time government application fee of €6,000 and
- Rent a property for at least €8,750 annually or Purchase a residential property in Malta for at least €220,000 and
- Pay a minimum annual tax payment of €15,000
Applicants must also demonstrate that they are in receipt of a stable income to maintain themselves in Malta and possess a health insurance policy.
The GRP does not impose any minimum physical stay in Malta, however beneficiaries are required not to say more than 183 days in any single foreign jurisdiction in any year.
Main benefits for South African nationals to apply for residency under the Malta Global Residence Programme include:
- A flat rate tax of 15% on foreign source income remitted to Malta
- Option to include family members in the same application
- No tax on income arising outside of Malta, if not remitted or used in Malta
- Visa free travel in the Schengen Area
- Applicants are entitled to double taxation relief
Option 2: Malta Permanent Residence Program (MPRP): This programme allows South African individuals and their families to obtain permanent residency status through a combination of the following three requirements:
- Property Rental of €10,000 per year or Property Purchase with a minimum spend of €300,000, and
- Government contribution of €68,000 if purchasing a property or €98,000 if property is rented, and
- Charity Donation of €10,000
Under the MPRP, applicants must also demonstrate that they are in receipt of a stable income to maintain themselves in Malta and possess a health insurance policy. In addition, the main applicant must also have a minimum capital of €500,000, out of which €150,000 must be in financial assets.
Main benefits for South African nationals to apply for residency under the Malta Permanent Residence Programme include:
- Permanent residency for life
- Ability to reside, work and study in Malta indefinitely
- Visa free travel in the Schengen Area
- Can include up to four generations in the same application
- Can include kids up to any age, as long as they are not married, and they are financially dependant on the main applicant
- The programme does not impose an annual physical stay in Malta
Way Forward
For South Africans considering a move abroad, Malta's residency programs present a compelling option. With its high standard of living, strategic location, and robust investment opportunities, Malta offers a perfect blend of stability, lifestyle, and financial benefits. Whether opting for the Malta Permanent Residence Programme (MPRP) or the Global Residence Programme (GRP), Malta is an excellent gateway for a prosperous European future.
This article is authored by Dr Antoine Saliba Haig, a legal associate at Andersen in Malta. He specialises in private client tax planning, wealth structuring and residency and citizenship programmes, including Citizenship by Investment and the Golden Visa, and advises on all naturalisation options.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
