November 1, 2023

Malta Budget 2024: No Changes to Malta’s Residence & Citizenship by Investment Regulations

On October 30, 2023, Malta’s Minister of Finance, Hon. Clyde Caruana, presented the annual budget speech to Parliament, outlining the Government’s vision and fiscal plans for 2024 and beyond. The budget speech touched upon several immigration-related matters, such as the focus on legal immigration policy and human rights, introducing systems to limit the importation of foreign labor to where this is truly necessary, a new licensing requirement for outsourcing and temping agencies who employ non-EU workers, and also methods to ensure that individuals who are employed by outsourcing or temping agencies are fairly paid and treated.

On the other hand, Malta’s immigration and relocation options for non-EU nationals, such as Malta’s Permanent Residence Programme and Malta’s Citizenship for Exceptional Services Regulations were left unmentioned. These residence and citizenship by investment options allow non-EU individuals to relocate to Malta by acquiring Maltese residence, permanent residence, and eventual citizenship, subject to completing a thorough 4-tier due diligence process, and satisfying other elements, including a one-time financial contribution or direct investment, the rental or purchase of residential property in Malta, and a donation to a local charity or voluntary organization.

This apparent omission in the 2024 budget speech, however, speaks volumes regarding the ongoing stability and reliability of Malta’s relocation programs, which not only attract financial investment, but an invaluable pool of skill, talent, and experience to Malta’s community. The impact of recent geo-political instability across the globe, an unforeseen shift to remote-work operations, and the consequential demand for increased international mobility are fierce driving forces that have been pushing individuals to reconsider their future, or at least, have a plan B available in case they need it.

Although not mentioned in the budget speech itself, in an interview ahead of the budget speech, Hon. Clyde Caruana was asked point blank by Times of Malta editor-in-chief, Herman Grech, whether the Government of Malta will be phasing out Malta’s citizenship by investment programme anytime soon. In response to this, the Minister confirmed that the programme will not be phased out, although the Government will wait to see how the ongoing European Court of Justice court case turns out.

Despite being one of the smallest EU and Schengen Member States, Malta’s political stability, economic resilience, low crime rate, and overall safety have been successfully attracting a diverse mix of highly skilled, qualified, and talented individuals to its shores.

Notwithstanding the mention of such programs being absent in the budget speech, the lack of attention to these immigration programs bears a silver lining. This, in combination with the Finance Minister’s comments in the Time of Malta interview, seem to be a clear indication that the current regulations are likely to be maintained in their current state, at least for 2024 and until the ECJ court case is concluded.

Historically, changes to such residence or citizenship programs were not abrupt, with the Government of Malta giving reasonable advance notice of upcoming changes, implementing a transition period, and typically the intention of such changes being initially presented to the country’s Parliament in the annual budget speech. In other words, this is likely a case of no news being good news for non-EU individuals who are still considering relocating to Malta under Malta’s residence and citizenship by investment regulations.

You can download the budget speech document here: Budget 2024

At Attard Baldacchino, we understand the importance of ensuring a smooth and successful relocation process. Our team of seasoned professionals is committed to providing you with the expertise, guidance, and support needed to navigate the legal complexities of relocating to Malta. We are here to assist you every step of the way, making your journey to Malta as seamless as possible.

Your aspirations of a new life in Malta are within reach, and with our support, you can confidently embark on this exciting adventure. We look forward to being your trusted partner in realizing your dream of relocating to this beautiful and welcoming country.

This blogpost is being published strictly for informational and educational purposes, and should be correct and accurate at the time of publication. The content of this publication should not be considered as formal legal, immigration, or tax advice.