Living the Island Life: How Cyprus and Malta Offer the Best Permanent Residency Options

For high-net-worth individuals seeking a stable, attractive option for permanent residency, both Cyprus and Malta stand out. These Mediterranean countries offer unique benefits for investors looking to establish long-term residence.

Albert Ioffe, Legal and Compliance Officer at Immigrant Invest, explores how each country’s permanent residency program works, highlighting the investment routes, costs, processes, and benefits. We also touch on the potential pathways to citizenship after Cyprus PR and Malta Permanent Residence Programme.

What is a Permanent Residence Permit in the EU?

A permanent residence permit allows non-EU nationals to live indefinitely in an EU country without needing to renew their status. It typically grants access to healthcare, education, and the ability to work or conduct business.

However, it does not automatically lead to citizenship, though it can be a pathway in many cases, including in Cyprus and Malta.

Cyprus Permanent Residence by Investment

Cyprus provides an attractive path to obtain permanent residence in Cyprus. By investing in real estate, individuals can secure long-term residency in this island nation, which is known for its favourable tax system and mild climate.

Investment requirements. The main requirement is a real estate purchase worth at least €300,000. This property can be residential or commercial, and applicants must also prove they have a steady annual income from abroad, which must be at least €50,000, plus an additional amount for dependents.

The overall cost depends on the property purchase and any legal or administrative fees. Once the property is acquired, applicants submit their documents to the Ministry of Interior.

The process takes about nine months, and successful applicants can enjoy residency for life.

Documents needed for Cyprus permanent residence. Applicants must provide proof of real estate purchase, a clean criminal record, proof of income from abroad, and medical insurance. Dependents such as a spouse or children can also be included in the application.

Benefits of Cyprus permanent residence. Cypriot residents can access the Cypriot healthcare system and education for children. The tax system is favourable, with no tax on worldwide income if the resident status is non-domiciled.

Malta Permanent Residence by Investment

Like Cyprus, Malta offers a permanent residency by investment option. This program allows non-EU nationals to invest in renting or purchasing property.

Investment requirements. Malta’s program requires an investment of at least €150,000 in renting real estate, depending on whether the property is in a central or rural area. An applicant can rent a property for at least €10,000 annually in the south of Malta or Gozo or €12,000 in the rest of the country. Alternatively, an investor can purchase real estate for €300,000 in the south of Malta or Gozo or €350,000 in the rest of the country.

Additionally, applicants must make a government contribution of €28,000 if purchasing property, or €58,000 if renting, plus a €2,000 donation to a local NGO.

The total process, including the submission of documents and Due Diligence checks, takes around four to six months.

Documents needed for Malta permanent residence. Applicants must submit proof of real estate purchase or rental, proof of income, a clean criminal record, health insurance, and a medical report. Like Cyprus, Malta allows the inclusion of dependents such as a spouse, children, and even parents.

Benefits of Malta permanent residence. Malta’s residents gain access to visa-free travel within the Schengen Area, as well as local healthcare and educational institutions.

Pathways to Citizenship with Cyprus and Malta Permanent Residence Permit

Cyprus citizenship pathways. While permanent residency in Cyprus does not automatically lead to citizenship, it does offer a pathway. After living in Cyprus for eight years, applicants can apply for Cypriot citizenship. The process includes requirements, such as language and cultural knowledge tests.

Malta citizenship pathways. Malta offers a similar path. Permanent residents can apply for citizenship after residing in the country for five years. However, Malta also has a more direct citizenship by investment option for those who want to accelerate the process, known as citizenship by naturalisation for exceptional services by direct investment.

Differences between Cyprus and Malta. While both countries provide permanent residency options, Malta’s citizenship timeline is shorter. On the other hand, Cyprus’s real estate investment requirements are more affordable and cost-effective.

Permanent residency as a strategic choice

Both Cyprus and Malta have designed their permanent residency programs with high-net-worth individuals in mind. The flexibility to include dependents, tax advantages, and access to healthcare and education make these programs appealing for those looking to secure a base in Europe. With favourable climates and growing economies, Cyprus and Malta are ideal locations for residency and potential future citizenship.

Cyprus may be better for those focused on property investment and long-term residency, while Malta’s flexibility with rental properties and the option for fast-tracked citizenship could appeal to those seeking a quicker route to European citizenship.

Conclusion

Both Cyprus and Malta offer attractive permanent residency options for investors, with each program having its unique advantages. Cyprus stands out for its simpler real estate investment model and benefits such as favourable tax laws and Schengen travel. Malta, meanwhile, provides a more flexible investment framework, along with faster pathways to citizenship.