MDINA – The government of Malta is introducing a new program to enable entrepreneurs from third countries to acquire residency in the country through the new Startup Residence Scheme.
The scheme is aimed at bringing a large number of international citizens to the country and would grant a three-year residence permit to founders, as well as co-founders and core employees of start ups together with their immediate family members.
Those who avail the scheme will have access to the Maltese market as a platform for European and International expansion; third country nationals are those who are not citizens of the European Union.
The duration of stay can be prolonged as well under this scheme for a further five years by founders as well as co-founders and for three years by all core employees, subject to certain conditions including that the business should be in operation.
Moreover, after five years of legally living in Malta, one can apply for a (possibly indefinite) extension as well.
Eligibility Criteria
To avail the residency in Malta under this scheme, the basic eligibility criteria is that internationals are required to make an investment of at least €25,000 (approximately $30,901) in a paid-up share capital or tangible investment.
To avail the residency, taxes have to be paid as well and after completing five years in Malta, third-country nationals will be eligible to file an application for long-term residency. Those who seek to avail the scheme should have a physical and tangible presence in Malta as beneficiaries must be able to show that they spend more than 183 cumulative days in Malta during a period of 365 days.
It is to be clarified that third country nationals, excluding EU, EEA and Swiss are eligible for this scheme while nationals from (or have close ties with) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela are ineligible.
As far as the fee is concerned, €750 would be charged for each adult applicant/dependent and €82.50 upon issuance of the residence card.
While commenting on the scheme, the Chief Executive Officer of Malta Enterprise, the country’s economic development agency said that the government is putting innovative startups at the heart of the country’s economic vision.
“Malta Enterprise offers a dedicated package for startups, including grants, loans, and other non-dilutive assistance that can significantly boost startups seeking early-stage financing. The Maltese Islands host booming industries like financial services, fintech, digital games, i-gaming, life sciences, pharma, R&D, maritime, aviation, as well as other niche sectors such as medical cannabis, AI, Internet of Things, cyber security, and big data,” Kurt Farrugia said as quoted by SchengenVisainfo.
The long term residency offered under the scheme would give peace of mind to the startup founders who need to focus on their business to build the next unicorn.
It is to be highlighted that companies with business plans not officially approved by Malta Enterprise and those with business activity not in line with the requirements of the local National FDI Screening office will not be eligible to benefit from this program.
On the other hand, third-country nationals who meet all the requirements for this scheme will not be obliged to apply for a visa in advance following the issuance of the Letter of Approval in Principle.
Malta has been changing its immigration laws to attract top talent from across the world. The country also offers Golden Visa Program which permits wealthy foreigners to acquire residency in the country through investment; the Golden Visa programs are though under fire for multiple reasons including the accusation that they pave the way for illegal acts.
