When considering European residence options, both Malta and Spain offer strong residency programs, each with distinct advantages. This article will explore the key features of both the Malta Global Residence Permit and Spain residence programs and provide insight into how they compare for American citizens.
Understanding the specifics of each option with Albert Ioffe, Legal and Compliance Officer at Immigrant Invest, will help you make an informed choice based on your needs.
European Golden Visa Overview
European Golden Visas are residency programs that allow non-EU citizens to obtain residence in exchange for making a significant investment in the country. These programs are popular among high-net-worth individuals seeking more flexibility, better quality of life, or the ability to move freely within the Schengen Area.
Both Malta and Spain Golden Visa have established well-regarded Golden Visa programs. These programs offer different paths to residency, investment requirements, and benefits, making them appealing to different types of investors.
Comparing Malta and Spain RP for Americans
Both Malta and Spain offer residency opportunities, but the processes and benefits differ. Here’s how they compare.
Investment requirements.
- Malta: To obtain a residence permit in Malta, an investor must make a significant financial contribution. This involves a combination of a donation to the national development fund, investment in government bonds, and the purchase or rental of property. The total investment is usually around €250,000 to €350,000, depending on the specific route chosen.
- Spain: The Spain Golden Visa requires a property investment of at least €500,000. This is the most common route for American citizens, though other investment options, such as creating a business or making financial investments, are also available.
Residency rights. A residence permit in Malta provides residency status in Malta and allows free movement within the Schengen Area. However, it does not automatically grant the right to work in Malta unless additional conditions are met. It is ideal for individuals seeking an EU base without the need to work in the country.
The Spanish Golden Visa also allows you to live and work in Spain and other Schengen Area countries. The residency permit grants the right to work, which is a major draw for many entrepreneurs or those looking for a long-term stay.
Processing time. The processing time for a residence permit in Malta can take 3 months, depending on the application.
Spain also processes Golden Visa applications in a similar timeframe, generally around 5 months.
Family inclusions. The Malta Residence and Visa Program allows for the inclusion of immediate and principally dependent family members, including spouses, children, siblings, parents and grandparents. This makes it a family-friendly option for those looking to relocate together.
Spain also permits family participation under the Golden Visa program, with the possibility of including spouses, children, and parents.
Tax benefits. One of the major benefits of the Malta Global Residence Program is its tax regime. Malta offers attractive tax incentives for foreigners. Additionally, Malta has a network of double taxation treaties with other countries, which can help reduce overall tax liabilities.
Spain offers tax residency to Golden Visa holders after staying in the country for 183 days or more. However, Spain’s tax rates are higher than Malta’s, and the tax system can be more complex for foreigners. Spain does offer certain exemptions and deductions, especially for individuals who qualify as non-domiciled residents.
US Citizens Residency Options in Malta
For US citizens, Malta offers two primary residence options: the Malta Global Residence Program and the Malta Permanent Residence Programme. While both options lead to long-term residency, the MRVP is the more flexible of the two.
Malta Global Residence Program is suited to individuals who wish to establish residency in Malta and enjoy the benefits of an EU member state. The program requires a minimum contribution of €30,000 per year to the national fund, along with an investment in property or rental agreements.
Malta Global Residence Programme also requires an annual tax payment of €15,000.
The Malta Permanent Residence Programme allows non-EU nationals to obtain a permanent residence permit in Malta by making specific investments in the country. It was introduced to attract international investors who are interested in gaining residence in a stable state.
To apply for the Malta MPRP, applicants must meet several key requirements:
- Rent real estate for at least €14,000 per annum or buy a property for at least €375,000 for a property situated in Malta or Gozo.
- Application administrative fee. Investors pay €15,000 as an initial payment and €35,000 at the final stage, regardless of whether they choose to buy or rent property.
- Government contribution. Investors must make a one-time, non-refundable contribution of €30,000 to the government if purchasing property, or €60,000 if renting.
- Donation to a non-governmental organisation. An additional donation of €2,000 is required to a local NGO. This donation contributes to social projects in Malta.
- Proof of funds. Applicants need to demonstrate assets worth at least €500,000, with €150,000 in liquid financial assets. This ensures that applicants have sufficient financial stability to support themselves and their families.
Spain Golden Visa for Americans
The Spain Golden Visa offers a straightforward path to residency by real estate investment. Spain is known for its high-quality lifestyle, great weather, and cultural attractions, making it a popular destination for wealthy individuals.
To qualify, one must invest at least €500,000 in real estate. You can purchase property anywhere in Spain, including attractive areas like Madrid, Barcelona, and the Costa Brava.
Other investment opportunities of Spain residence program for Americans include fund units purchase, government bonds purchase, business investment and others.
The visa allows you to live, work, and study in Spain without restrictions. After five years of continuous residency, you may be eligible for permanent residency, and after ten years, you may apply for citizenship.
How to Apply for a Golden Visa
Applying for a Golden Visa in either Malta or Spain generally follows similar steps, although each country has its own application process.
- Choose the investment Type. Decide whether to invest in real estate, government bonds, or a national development fund. The investment requirements will vary depending on the country and type of visa.
- Gather documents. You will need to provide identification documents, proof of financial standing, background checks, and more.
- Submit the application. Applications are typically submitted through the official government channels, and in both Malta and Spain, a licensed agent or lawyer may be required to handle the paperwork.
- Wait for approval. Once your application is submitted, the authorities will process it. In general, approval can take a few months.
- Receive the visa. Upon approval, you will receive a residence permit, allowing you to live, work, or invest in the country.
Conclusion
Both Malta and Spain offer appealing residence programs for US citizens, with unique benefits for different needs. Malta’s program is ideal for those seeking a base with flexible investment options, while Spain’s Golden Visa offers a more direct path to residency by real estate investment. Ultimately, the right choice depends on your goals, financial situation, and lifestyle preferences.
