Located in the center of the Mediterranean Sea, Malta European residency is considered an ideal second home for investors looking to obtain a European residency due to its political and economic stability, professional business environment, and robust economy. Although it is the smallest member in the European state, Malta has proved its ability to provide programs convenient for potential investors to reside, and flourish in the business world.
The Malta Permanent Residence Program (MPRP) offers third-country nationals, which means non-EU, non-EEA, or non-Swiss, Malta’s residency by investment, enabling investors and their families to settle and live permanently on the Mediterranean island.
In this article, we will explore Malta’s investment opportunities and discuss why now is the perfect time to invest in the country and gain residency through investment.
Robust Economy
Malta’s economy continues its strong economic growth and is expected[1] to outperform other member states in 2024 and 2025. GDP growth is expected to reach 4.6% in 2024 and 4.3% in 2025, driven by net exports and private consumption. In 2023, inflation, as measured by the harmonized index of consumer prices, reached 5.6% with energy prices being kept at 2020 levels. Inflation in 2024 and 2025 is forecast at 2.8% and 2.3% respectively, with continuing pressures in food and services prices, while retail energy prices are set to remain stable. The tourism sector continues to rebound strongly, exceeding pre-pandemic levels and having further growth prospects.
Malta European residency is renowned for its exceptional climate, friendly population, low crime rates, and outstanding quality of life. These factors make it an ideal destination for securing alternative residency or owning a second home. The island enjoys excellent air and sea connections to Europe, Africa, and Asia, making it highly accessible. English is widely spoken, and the country boasts a strong network of international schools and universities. Additionally, Malta offers high-quality healthcare services, while personal freedom and sustainable development are core values upheld across society.
Malta’s Competitiveness
Malta’s economy is well positioned in dynamic service exports[2] (online gaming, management, and financial services) and high value-added export of goods (pharmaceutical products, electronics, and microchips). Malta offers a range of booming sectors that present significant investment opportunities for those looking to live and work there. These thriving industries have positioned Malta as a dynamic hub for innovation and growth. Key sectors include:
Developed Banking and Fintech sector
The industry maintains a healthy reputation, ranking 38th out of 141 countries worldwide[3] concerning the local financial system. Malta has positioned itself as a jurisdiction of choice for banks and other financial services players by maintaining its reputation as a robust, tax-efficient, well-regulated EU member state. The introduction of Payments Services Directive II (“PSD II”) further encouraged the emergence of payment institutions and electronic money intuitions all over Europe. In fact, over 50 financial institutions, including payment and electronic money institutions, have obtained their license from the Malta Financial Services Authority “MFSA”.
The Maltese government actively encourages investment in the fintech sector through well-crafted regulations and extensive expertise, making it an ideal destination for organizations seeking growth. Entrepreneurs and leaders in financial software have a unique opportunity to establish themselves in Europe and the world’s fastest-growing financial hubs. Malta has developed efficient fintech infrastructures that support expansion and trade, connecting investors and businesses from around the globe.
Tourism: Booming sector
Tourism is an essential contributor to Malta’s economy. Its strategic position in the Mediterranean Sea, rich history, and architectural tradition have long made the island an attractive tourist destination. In 2023, the total contribution of travel and tourism[4] to the GDP in Malta totaled €2.6 billion, recovering from the impact of the COVID-19 pandemic. Similarly, the total contribution of travel and tourism to employment exceeded pre-pandemic levels, with these industries generating, directly and indirectly, nearly 56,000 jobs in the country in 2023. Investments in hotels, guesthouses, restaurants, bars, and tourism activities are lucrative for all investors.
Maritime sector: Promising opportunities
Malta has solidified its position as the world’s sixth-largest ship registry, capitalizing on its strategic location in the heart of the Mediterranean. Over the years, the country has leveraged this advantage to become a key maritime hub. With state-of-the-art maritime infrastructure and a workforce highly skilled in international trade, Malta is home to some of the most renowned ports globally. Offering a wide array of services to the maritime industry, the country has strengthened its role as a pivotal gateway between Europe, North Africa, and the Middle East. The thriving success of Malta’s maritime sector promises substantial returns for both local and international investors.
Gaming industry
With the swift rise of the iGaming sector, Malta has carved out its position as a dominant force in the industry. Malta has become a main destination for further expansion due to its favorable location, welcoming nature, and highly developed legal environment for operators. Currently, the iGaming industry[5] accounts for over 13% of the Maltese GDP with an annual revenue of over €700 million. Malta has since, solidified its reputation as Europe’s undisputed iGaming hub.
The sector’s growth has attracted numerous international players, making it a highly competitive market with huge potential. Many firms are moving to Malta because of its skilled human resources, modern facilities, and tax incentives. As the government remains supportive and continues to develop positive policies, there is a realistic expectation of further development of the gaming industry in Malta and hence ideas and inventions for investors and businesses. Malta’s leadership in this sector not only boosts its economy but also positions it as a global innovation hub in digital gaming.
Malta European residency requirements
To qualify for Malta permanent residency by investment, applicants must buy or rent a residential property, pay administrative and state fees, and donate to a Maltese organization. The main applicant must prove that he has assets of at least €500,000, of which €150,000 must be in monetary financial assets such as savings, bank deposits, stocks, and bonds.
The main applicant and all dependents included in the application must have valid health insurance with medical coverage in Malta. The investment required for purchasing a property in the South of Malta is €300,000, and in the Rest of Malta €350,000. This is in addition to a government contribution (€28,000), government administrative fees (€40,000), and charitable contribution (€2,000). The investment required for renting a property in the South of Malta is €10,000 per year, and in the Rest of Malta €12,000 per year, in addition to a government contribution (€58,000), and government administrative fees (€40,000), and charitable contribution (€2,000).
Sources:
[1] https://economy-finance.ec.europa.eu/document/download/b8357ca1-e31e-4a3a-b7e4-25ebf8d01121_en?filename=SWD_2024_618_1_EN_Malta.pdf
[2] https://economy-finance.ec.europa.eu/document/download/b8357ca1-e31e-4a3a-b7e4-25ebf8d01121_en?filename=SWD_2024_618_1_EN_Malta.pdf
[3] https://kpmg.com/mt/en/home/industries/banking-and-financial-institutions.html
[4] https://www.statista.com/topics/7091/travel-and-tourism-in-malta/#topicOverview
[5] https://www.drwerner.com/en/top-industries-to-invest-in-malta-and-other-opportunities-the-future-holds/