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Top European Residency Programs: Why Malta and Portugal Lead the Way
Residency by investment programs have become a popular option for high-net-worth individuals looking to secure their future in Europe. Among these programs, Malta and Portugal have emerged as the best options due to their unique advantages. Albert Ioffe, Legal and Compliance Officer at Immigrant Invest, provides a detailed comparison of these leading residency programs and why Malta residency program is the top choice for investors.
EU Residency Programs Overview
European residency by investment programs allow individuals to obtain residence permits by making significant investments in a country’s economy, typically through real estate or financial contributions.
Malta and Portugal are often regarded as the most attractive options due to their benefits, including:
- ease of application;
- return on investment;
- the pathway to EU citizenship.
Both countries have consistently ranked high among investors for their programs’ flexibility and long-term value.
The Malta and Portugal residency programs have specific qualities that make them stand out from other European Union residence permit programs. While many countries offer residence permits for investors, Malta and Portugal combine low investment thresholds and ease of access to the Schengen Area. These features make them practical and financially sound options for investors looking to establish a presence in Europe.
Portuguese residence permit provide a pathway to full citizenship, which is a significant advantage over countries with more restrictive policies.
Benefits of European Residency by Investment
Access to the Schengen Area. One of the primary benefits of obtaining residency in Malta or Portugal is access to Europe. Residents can travel freely across the Schengen Area, which includes 29 countries. This freedom of movement is invaluable for those looking to expand their business, education, or personal opportunities within Europe.
Tax advantages. The Malta RP program offers a flat tax rate of 15% on foreign income remitted to Malta, with a minimum annual tax obligation. This attracts investors who are looking for ways to reduce their tax burden while enjoying the benefits of European residency.
Family inclusion. Residency by investment programs typically allow the inclusion of close family members, ensuring that the entire family can enjoy the benefits of European residency. Both Malta and Portugal allow investors to include spouses, children, and even dependent parents in their applications, making these programs highly attractive for families.
Grandparents and siblings also can apply for a Mala residence permit together with the main applicant.
Malta Residence Permit
Malta Global Residence Programme is highly sought after because of its simplicity and multiple benefits. The process can take as little as 5 months, after which the investor and their family members receive their residence permits.
Requirements. Applicants must rent or purchase property in Malta. The minimum value varies by location. They must also have health insurance and a stable income source. To obtain a residence permit under the Malta Global Residence Programme, the applicant must:
- Be a non-EU/EEA/Swiss national.
- Purchase or rent real estate in Malta: €220,000+ for purchase or €8,750+ annually for rent.
- Pay a minimum annual tax of €15,000.
- Hold health insurance and a stable, legal income.
- Have a clean criminal record and basic proficiency in English or Maltese.
- Pay an administration fee of €5,500+.
- Meet all Due Diligence and legal requirements.
Benefits. The program provides tax incentives, including a flat 15% tax rate on foreign income remitted to Malta. It also allows visa-free travel to the 29 countries within the Schengen Area. Malta’s stable economy, English-speaking population, and excellent healthcare and education systems make it an appealing destination for long-term residency.
No minimum stay requirements. One of the standout features of Malta’s program is that it does not require applicants to reside in Malta for any length of time. However, they cannot spend more than 183 days per year outside the country. This makes it a great option for investors who want the flexibility to live elsewhere while holding a Maltese residence permit.
Path to citizenship. After maintaining residency for several years, Malta provides a pathway to citizenship through its naturalisation process, making it an attractive option for those seeking full EU citizenship.
The process typically requires residency for at least five years, but once citizenship is obtained, individuals gain full EU rights and privileges, including visa-free travel across the EU and access to various business and tax benefits.
Portugal Residence Permit
Portugal Golden Visa is aimed at those who can make substantial financial contributions.
Requirements. The Golden Visa program allows non-EU citizens to obtain residency in Portugal by making an investment. This can be done through various means, such as:
- fund unit purchase;
- business investment;
- job creation;
- investment in research activities;
- supporting cultural heritage.
The most popular option is fund units purchase worth at least €500,000. The minimum investment option is in culture support — €250,000.
Benefits. Portugal has a high quality of life, excellent healthcare, and a strong economy. It also offers access to the Schengen Area and the potential for permanent residency citizenship after five years.
Flexibility with stay requirements. Portugal’s program requires a minimum stay of only 7 days per year during the initial period. This low stay requirement is particularly beneficial for international business people or frequent travellers who need flexibility while maintaining EU residency.
Citizenship after five years. Portugal offers a clear path to citizenship after five years of maintaining residency, provided the investor meets language and residency requirements. This citizenship grants access to the full rights of EU citizens, including the ability to live and work anywhere in the European Union.
Other Countries with Residency by Investment Programs
Hungary’s residency program. While not as popular as Malta or Portugal, Hungary offers a competitive residency by investment program, requiring investment in funds or real estate of at least $250,000. The Hungarian program is known for its affordability and relatively quick processing times. Although Hungary does not have the same level of global recognition, it remains an option for investors seeking a cost-effective solution within Europe.
Greece’s Golden Visa. Greece offers a Golden Visa program with a low minimum investment threshold of €250,000 in real estate. This program is popular among those looking to invest in property while gaining access to Europe, but it lacks some of the long-term benefits of Malta and Portugal. However, with Greece’s growing tourism sector and economic potential, it remains an attractive option for real estate investors.
Conclusion
Comparing Malta and Portugal. Both Malta and Portugal provide exceptional residency by investment programs, each with its own advantages. Portugal offers flexibility with no minimum stay requirement and a clear path to citizenship, while Malta stands out with its lower investment threshold and flexible residency terms. For high-net-worth individuals, these two countries are leading options when considering European residency.
