Malta’s New Startup Residence Scheme Attracts Global Entrepreneurs

    The Startup Residence Scheme offers residency to third-country entrepreneurs, aiming to foster innovation and economic growth in Malta.

    Malta has introduced a new Startup Residence Scheme to attract international entrepreneurs from third countries, granting them residency and the opportunity to invest in the island nation. The program aims to bolster Malta’s economy by bringing a diverse range of innovative startups to the country.

    The Startup Residence Scheme

    According to a report by Eturbo News, the Startup Residence Scheme provides a three-year residence permit to founders, co-founders, and core employees, along with their immediate family members. After the initial period, the permit can be renewed for an additional five years for founders and co-founders, and for another three years for core employees, as long as the business remains operational and all requirements are met.

    To qualify for the program, foreign applicants must invest at least €25,000 (approximately $30,901) in paid-up share capital or tangible investments. Participants will need to travel to Malta and pay taxes locally. After five years, third-country nationals will become eligible to apply for long-term residency.

    Malta’s Economic Vision

    Kurt Farrugia, CEO of Malta Enterprise, the country’s economic development agency, expressed his support for the new program, stating that the Maltese government is putting innovative startups at the heart of its economic vision. He highlighted the various industries thriving in Malta, including financial services, fintech, digital games, i-gaming, life sciences, pharma, R&D, maritime, aviation, and niche sectors like medical cannabis, AI, the Internet of Things, cybersecurity, and big data.

    Farrugia further emphasized that Malta Enterprise offers a dedicated package for startups, consisting of grants, loans, and other non-dilutive assistance, which can significantly boost startups seeking early-stage financing.

    Charles Mizzi, CEO of Residency Malta, the agency responsible for granting residency permits, noted that the initiative provides founders, co-founders, and core employees of highly innovative startups with the peace of mind that comes with a medium-term residency permit. This allows entrepreneurs to focus entirely on their businesses.

    Eligibility and Restrictions

    Companies whose business plans have not been officially approved by Malta Enterprise or whose business activities do not align with the requirements of the local National FDI Screening office will not be eligible for the Startup Residence Scheme.

    However, third-country nationals who meet all the requirements for the scheme will not need to apply for a visa in advance, following the issuance of the Letter of Approval in Principle.

    Other Residency Programs

    In addition to the Startup Residence Scheme, Malta offers the Golden Visa Program, which allows wealthy foreign nationals to acquire residency, and the Golden Passport Scheme, permitting internationals to obtain citizenship in Malta. While these programs have often been accused of being involved in illicit activities, the Startup Residence Scheme offers a new avenue for attracting global talent and promoting innovation in the country.

    Potential Impact on Malta’s Economy

    The Startup Residence Scheme has the potential to significantly impact Malta’s economy by attracting international entrepreneurs and fostering innovation. By offering residency to founders, co-founders, and core employees, Malta is positioning itself as a hub for innovative startups and a competitive player in the global market.

    The success of this program will depend on the quality of businesses attracted, the level of innovation they bring, and the overall impact on Malta’s economy. As the program unfolds, it will be crucial to monitor its outcomes and adapt it as needed to ensure the best possible results for the country and its citizens.

    Disclaimer: While we make every effort to update the information, products, and services on our website and related platforms/websites, inadvertent inaccuracies, typographical errors, or delays in updating the information may occur. The material provided on this site and associated web pages is for reference and general information purposes only. In case of any inconsistencies between the information provided on this site and the respective product/service document, the details mentioned in the product/service document shall prevail. Subscribers and users are advised to seek professional advice before acting on the information contained herein. It is recommended that users make an informed decision regarding any product or service after reviewing the relevant product/service document and applicable terms and conditions. If any inconsistencies are observed, please reach out to us.

    Latest Articles

    Related Stories

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    Join our newsletter and stay updated!