Contributed by: Chetcuti Cauchi Advocates
June 2022 to April 2023
1. Legislative Changes
The Government of Malta has introduced a number of bills in order to improve the current legislation with respect to National Immigration Law.
Act No. XV of 2022 - Immigration (Amendment) Act - The objects and reasons of this Bill are to facilitate the return of persons who are refused to land in Malta, particularly in situations where it is not possible, for practical reasons, to return them on the same flight on which they would have arrived.
Act No. XIX of 2022 - International Protection (Amendment) Act - The objective is to better transpose the relevant articles of:
Directive 2013/32/EU of the European Parliament and of the Council of 26th June 2013 on Common procedures for granting and withdrawing international protection (recast),
Directive 2011/95/EU of the European Parliament and of the Council of 13th December 2011 on Standards for the qualification of third-country nationals or stateless persons as beneficiaries of international protection, for a uniform status for refugees or for persons eligible for subsidiary protection, and for the content of the protection granted (recast); and
to transpose Directive 2013/33/EU of the European Parliament and of the Council of 26th June 2013 laying down standards for the reception of applicants for international protection (recast).
Act No. III of 2023 - Convention on the International Protection of Adults (Ratification) Act - The objects and reasons of this Bill are to provide for the ratification by Malta of the 2000 Hague Convention on the International Protection of Adults.
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.
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.
Eligibility criteria
✓ Applicants must be non-EU nationals and earn a gross monthly income of €2,700.
✓ 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 €32,400.
2.3 Employment-based immigration (work and residence permits)
✓ 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
✓ OR (MVA to explain verbally)
2.4 Highly Skilled immigration (Blue Card etc)
No relevant changes were introduced for Highly Skilled Immigration.
3. Investment-based immigration (Investors/Entrepreneurs)
3.1 Malta Permanent Residence Programme (MPRP)
No changes were introduced on this programme, it continues to operate normally.
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.
In order 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.
3.2 Malta Global Residence Programme (GRP) / The Residence Programme
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.
3.3 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; ii. Refugees, persons granted subsidiary protection, persons granted SRA (Specific Residence Authorization) status or TCNs who have applied to obtain such status; iii. 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
Response to the crisis in Ukraine as of 20th April 2022
Ukrainians do not need a visa to access Malta and are automatically granted a 90-day visa upon entry. In February 2022, a Community Crisis Centre was created with the help of the Honorary Consulate of Ukraine in Malta, to better coordinate the reception efforts.
As of March 2022, the International Protection Agency provides specific information regarding applications to Ukrainian Nationals who wish to apply for the Temporary Protection under the Temporary Protection Directive (2001/55/EC).
On 4th April 2022, the IPA indicated that it received 247 requests for Temporary Protection and issued 193 decisions to grant protection. Persons who left Ukraine before 24th February 2022 year, are not eligible for Temporary Protection yet are able to apply for International Protection.
6. Deportation
No significant changes have taken place however, this year there was a high influx of deportation, actions taken by the Malta Immigration Police Force have outlined that over 1,000 immigrants have been deported from Malta since the start of 2022 as has also been confirmed by Home Affairs Minister Mr Byron Camilleri. Malta has taken action in informing Frontex to fully assume a central role in European border management, with returns and to prevent unauthorised border crossings at land and sea borders.
7. Citizenship
Aġenzija Komunità Malta was established in 2020, ensuring the functions pertaining to the granting of citizenship by means of economic investment and the implementation of all the other provisions of the Maltese Citizenship Act are undertaken by one entity.
The Agency administers and processes citizenship related matters. This includes accepting and processing applications for the acquisition of Maltese citizenship by birth, by registration, by naturalisation through long term residence, for exceptional services by merit, and for exceptional services by direct investment in Malta.
Ever since the grant of citizenship by investment was established, the initiative generated the amount of €1,130,825,000 in gross contributions made by the applicants to the government of Malta, of which €616,427,599 were transferred to the NDSF, and €388,529,774 were transferred to the Consolidated Fund. A total amount of over €1.8 million were donated by successful applicants of the IIP programme to local NGOs till the end of the year 2021.
The Agency continues to strive so that the initiative will continue to generate further revenue for the economic and social wellbeing of Malta. Furthermore, Aġenzija Komunità Malta financially supported several projects related to social or philanthropic objectives that are considered of national importance.
Following the Amendments to the Maltese Citizenship Act, the Agency continued to address the social imbalance whereby children born out of wedlock to a Maltese father did not acquire Maltese citizenship automatically at birth, as in the case of a child born in similar circumstances to a Maltese mother. The relative act ensured also that, notwithstanding that citizenship may be granted as of right by means of registration, such a grant is made conditional to public interest considerations.
2022 Notices
Suspension of Submission and Processing of Applications made by Russian and Belarusian Nationals on the Basis of Investment- March 2022
As a result of recent developments, 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. Notwithstanding the fact that no beneficiaries of any citizenship or residence status are on the EU Sanctions List, renewals of status of beneficiaries will be processed on a case-by-case basis in accordance with the existing standard procedures. These entail fresh compliance checks to ensure beneficiaries continue to remain eligible.
The Government of Malta takes note of the action taken by the European Commission – September 2022
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.
In this regard, the Government of Malta believes that it is not in breach of the principle of sincere cooperation as stipulated in Article 4(3) of the Treaty of the European Union (TEU) and that its legislative framework of citizenship by investment fully respects the provisions as laid down in the Treaty of the Functioning of the European Union (TFEU) by the operation of the said avenue of naturalization. The government, following consultations with experts in this field, strongly rejects the interpretation given by the Commission regarding such articles.
Malta operates such avenue on the basis of robust due diligence processes which address the risks related to money laundering and the financing of terrorism and ensure that only worthy individuals would acquire Maltese citizenship and consequently European citizenship.
It reiterates that in this regard it is exercising its competency in this field in accordance with the article 20 TFEU and abiding with the conditions and limits defined by the treaties and the measures adopted thereunder. This legislative framework was carefully scrutinised in evaluations on the risks of money laundering and the financing of terrorism by several international institutions, namely Moneyval and FATF. The entities and their processes successfully passed the same evaluations and were even recognised as a model for other countries in the fight against the activities of the mentioned organised crime. These processes also include the sharing of information in a transparent manner with third country jurisdictions.
Malta continues to rebut the said allegations and awaits for the Court of Justice of the European Union to settle the matter by ruling on the interpretation of the treaties.
Comments