Malta GRP €300k net worth requirement??

[Eurocash]

I won't name names but one of the main law firms in Malta are telling me that I require to be able to demonstrate a net worth of €300,000 in order to qualify for the global residency program.

I have never heard of this requirement before.

I know there are different requirements for the permanent residency scheme, but I was always under the impression that the global residency program involved the following:

Applicants must purchase property worth at least €220,000 in Gozo or South of Malta or €275,000 elsewhere. Alternatively, they may rent property for a minimum of €8,750 in Gozo or South Malta or €9,600 in other parts.

And

A minimum cash balance of (from memory) like €14,000 or something.

Where did this €300,000 come from? Is it new?

 

[Davis123]

From what I know Malta program was canceled by EU a few days ago. I‌ have received many offers on Instagram about EU passport of Slovenia for 30k Euro which‍ is a classic scam. Please be careful and do due diligence.

 

[Eurocash]

You're thinking of the passport scheme - this is totally different

 

[Martin Everson]

https://cfr.gov.mt/en/inlandrevenue/itu/Pages/Global-Residence-Programme-Rules.aspx

You must pay a minimum annual⁣ tax of 15,000. I guess they calculated a 5% return on 300k wealth. Or you⁢ can basically remit to Malta 100,000 a year and pay the 15% tax (15,000) that︀ way.

 

[Eurocash]

You're 100% right re: tax, it doesn't really make sense to earn less than 100,000 if⁠ living in Malta. I got to the bottom of the net worth "requirement" tho....

The person I spoke to said the €300k net worth was not a requirement enshrined in⁤ law, instead, it is just what he has seen in practice.

Not sure what to⁣ make of that to be honest. Someone with a net worth of €500k in highly⁢ illiquid assets or based on a company valuation is nowhere near as "readily wealthy" as︀ someone with say €250k, in cash at bank.

If the purpose of the number is︁ to figure out how likely someone is to require support from the governement, then surely︂ they would favour the person with €250k cash in the bank than someone with higher︃ amount "on paper".

Would be interesting to know if anyone on here went through the︄ program successfully

 

[Martin Everson]

Very true. But sadly they all use that 5% rule even in Gibraltar with its⁤ category 2 residency (similar to Malta). They calculate minimum £2m net worth and 5% income⁣ i.e circa £105k and £37k tax paid yearly on that income.

https://www.category2.com/Category_2_tax.html/

Best to find⁢ a clever way to increase your net worth on paper.

 

[Eurocash]

Spoke to another firm today based in Malta, and they have confirmed that︀ there is no such requirement at the level of 300k Euros, and that it is︁ handled on a case by case basis, and that 200k Euros cash (or thereabouts) would︂ be sufficient in almost all cases

 

[Martin Everson]

If two different firms gave you⁤ different answers. I would not necessarily go with the firm that gave you the answer⁣ you like 😕. Just investigate a bit more to be on safe side in 2025.⁢

 

[Eurocash]

Yeah I get⁠ that, but the reason for seeking a second opinion was not so that I could⁤ get an answer I preferred, it was because the initial advice sounded dubious.

I'll maybe⁣ look for a tie-breaker opinion!

 

[diro]

very good advice,⁠ consider following this to avoid troubles long term. Some lawyers or accountant will tell you⁤ anything to get your business.

 

[Eurocash]

Yeah this‍ goes without saying. I wasn't really looking for advice on taking advice but I guess⁠ there's no harm in heeding your advice on advice on taking advice

 

[diro]

Always research alot, never just take the first offer. What is⁠ the outcome of all your research ?

 

[Eurocash]

No outcome yet, still researching.

So far‍ it does seem as though Malta want to see a strong demonstration of self sufficiency⁠ in an application to the GRP, however, the actual amount that will be accepted appears⁤ to be agreed on a case by case basis.

€40,000: won’t be accepted

€400,000 will⁣ be accepted

Number in between that: who knows??

 

[Martin Everson]

So basically your none the wiser after speaking to different providers 😕. The initial advice‌ may not be dubious after all but more prudent to achieve a successful outcome.

 

[Eurocash]

Hmm... I wouldn't say I'm "none the wiser", and I‍ also wouldn't say that the initial advice was "prudent" either, how could I?

I appreciate⁠ there's no malice in your comments but at the same time, each one has had⁤ adverserial undertones