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Malta: Start-Up Residence Program Launched

November 9, 2022

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  • MaltaMalta

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At a Glance

  • The Maltese government recently launched the Start-Up Residence Program, intended for innovative individuals or scale-ups seeking to develop and build up their business in Malta.
  • The program has minimum investment requirements and is available to those operating in manufacturing, software development, industrial services, healthcare, sustainability practices, or the provision of services not readily available in Malta.
  • Successful applicants, including employees and family members, will be granted a three-year residency permit with automatic work authorization. The permit is extendable for an additional five years.

The situation

In an effort to boost foreign investment and innovation, Malta has created the Start-Up Residence Program for foreign nationals seeking to live and build up their company in the country.

A closer look

  • Eligibility. Eligible applicants must be 18 years or older and serving as either a founder or co-founder of the company; (up to six co-founders can apply). The primary co-founder must also provide proof of registration as an acting director or legal representative within the company.
    • Restricted list of eligible nationalities. Currently, nationals from the European Union, European Economic Area, Switzerland, and certain other countries are not eligible to apply for this program; however, the government will revise the eligibility list periodically.
    • Dependents. Core employees and certain family members, including spouses, de-facto partners, minor children and adult children dependent on the founder or core employee, qualify as dependents if they meet certain conditions.
  • Investment threshold. A co-founder must possess EUR 25,000 in investment capital, unless there are four or more co-founders applying, in which case an additional EUR 10,000 per co-founder is required.
  • Start-up details and permitted activities. The company cannot have been registered for more than seven years on a global scale (including in Malta) and cannot have taken over the activity of another company through a merger or to dispense profit. Eligible sectors include: manufacturing, software development, industrial services, healthcare, sustainability practices, or the provision of services not readily available in Malta.
  • Application process. Individuals must submit an online application detailing their business plan to the Malta Enterprise and Residency Malta.  The typical processing time for residency cards is approximately four to five weeks, however, this varies depending on the agency.
  • Validity. The residency permit will be issued for an initial three-year period. The permit is extendable for an additional five years, provided the founder or co-founders and the company still meet eligibility criteria.   
  • Status maintenance. Permit holders are required to live and pay taxes in Malta throughout the duration of their stay. A declaration of intent to hold primary residence in Malta is also required post-application approval; this applies for dependent family members as well.
  • Other requirements.  Applicants must also have valid health insurance, a clean criminal record, and cannot have been rejected for residence status in Malta. More details on eligibility requirements and general program details are available here.

Impact

Although Malta has created alternative visa pathways over the past few years, this is the first program in Malta primarily catered to start-ups. The program offers the benefits of a long-term stay and an online application process.

Background

  • This program is part of a larger effort to improve the economy of the country, provide more access to various sectors of foreign talent and streamline immigration processes. Malta also launched the Digital Nomad Permit in June 2021.
  • Initiatives like the Start-Up Residence Program are becoming popular within the European Union in the wake of industry shortages and need for market revival.

Looking ahead

As countries like Malta work to combat industry shortages and economically mobilize, there will likely be more programs offered to individuals seeking to start or scale-up their businesses. Fragomen will report accordingly on developments regarding the Start-Up Residence Program.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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  • MaltaMalta

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