Updated: 22nd August, 2024
It is a notable trend that billionaires are choosing Malta for their second citizenship. Essentially, judging by the private yachts, private jets, registration of family offices and those that have acquired citizenship through investment, Malta is quietly attracting the ultra-rich by the droves.
The ultra-rich, technically defined as Ultra-High-Net-Worth Individuals, are those whose investable wealth exceeds US$50 million. However, in the realm of Ultra-High-Net-Worth Individuals, US$50 million will merely get you on the ladder.
While no doubt having money is better than not having it, great wealth brings its own problems. Commonly, once a person accumulates significant wealth, the focus shifts to legacy. As a result, family offices offer a one-stop solution to asset management, philanthropy, and succession planning.
The ultra-rich tend to gravitate towards common factors, namely political and economic stability. The choice of jurisdiction to set up a family office with which they identify is crucial. Now, why is Malta among the top picks?
Read more on the economic and political stability of Malta.
Fastest-growing Economy in Europe
The European Commission published a complete set of macroeconomic forecasts for the EU and its Member States. After a considerable decline (-8.2%) in 2020, Malta’s real GDP growth is estimated to have rebounded strongly to 5.9% in 2021. By 2023, Malta's GDP was at 5.6%, which is higher than was forecasted. Additionally, Malta's tourism sector resumed its earlier position pre-pandemic. The European Commission further notes that in the first two months of 2024, tourist arrivals in Malta increased by 26%. Further growth is estimated to occur in the coming years.
FitchRatings also affirmed Malta at A+ in March of 2024. The country’s economy is supported by high per-capita income levels, a significant net external creditor position and a pre-pandemic record of strong growth and sizeable debt reduction. Fitch also rated with a Stable Outlook as Malta’s GDP growth is expected to recover. The country’s debt will also stabilise after the fiscal shock brought by the pandemic.
Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment
Malta is also the favourite choice to acquire citizenship. The Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment allows foreign nationals to invest in the country’s economy in exchange for naturalisation after one or three years, depending on the investor’s chosen route. This citizenship, in turn, grants full rights within the entire European Union and one of the world’s most powerful passports.
The Malta NESDI programme initially offers residence status in Malta. Applicants may opt for either of these two routes:
- Apply for citizenship after one year of holding residency status in Malta with a non-refundable investment of €750,000 to the National Development and Social Fund set up by the Government of Malta (plus €50,000 per family member included in the application).
- Apply for Maltese citizenship after three years with a lower non-refundable investment of €600,000 (plus €50,000 per family member included in the application).
Investors must also make a charitable donation of €10,000 to any non-governmental organisation registered in the country. Also, they have to lease a residential property in Malta for a minimum annual rent of €16,000.
Alternatively, investors can purchase a residential property in Malta for at least €700,000. Such qualifying property is to be held for at least five years from the date of the certificate of naturalisation.
The NESDI programme is far from cheap. Also, let’s call a spade a spade; Maltese citizenship is a status symbol.
Aviation and Maritime in Malta
There are other symbols of wealth in Malta if you know where to look. In fact, within a few minutes of landing at the Malta International Airport, you can see clues that Malta is a hidden playground for billionaires. Comlux, VistaJet and DC Aviation, three of the world’s largest private jet operators, have bases in the country.
Moreover, a 20-minute drive to the Grand Harbour reveals Camper & Nicholsons flagship superyacht marina set against the stunning backdrop of Malta’s capital city Valletta featured in numerous Hollywood movies. Berthed here are some of the most luxurious superyachts in the world.
On the one hand, Malta is a popular vessel registry with its long-lasting maritime tradition and culture. In addition, the aviation industry in Malta has been growing steadily with a solid legal foundation to sustain it. Malta's benefits to both industries are geographical, reputational, and financial.
Luxurious Private Life
Ironically, and notwithstanding Malta’s various UNESCO world heritage sites and burgeoning economy, Malta still feels obscure but in the right way. Unlike their lesser affluent counterparts, Ultra-High-Net-Worth Individuals prefer to lead invisible lives. This combination of an advanced economy coupled with a Mediterranean flair seems to be the winning formula. Malta ticks all the boxes for those who want to keep a low profile but still enjoy luxury trappings.
