Immigration Central | Malta’s Startup Residence Scheme to welcome third-country entrepreneurs

After its popular Golden Visa programme, Malta is now offering a Startup Residence Scheme under which startup founders, co-founders, the core employees and their immediate family members will eligible for a three-year residence permit. After three years, the founders and co-founders can renew their permits for five years while their employees can renew it for another three years provided the business is still ongoing and the company meets the basic requirements.

Malta Enterprise, the country’s economic development agency, offers a dedicated package for startups, including grants, loans, and other non-dilutive assistance that can significantly boost startups seeking early-stage financing.

Benefits:

• The Residence permit will be issued for an initial period of three years following the approval of Malta Enterprise and Residency Malta. This will be renewed for a further five years once Malta Enterprise and Residency Malta confirms that the start-up is still ongoing and the founder or co-founder(s) still meets the eligibility criteria of the programme.

• Successful applicants can apply for their spouse, children, and other dependents to join them in Malta, ensuring a smooth transition for the entire family.

• Participants in the Startup Residence Scheme gain access to mentorship, networking opportunities, and potential funding from local and international investors.

• Competitive tax regime, efficient regulatory framework, and a skilled workforce.

• The processing time is usually about 90 days.

Eligibility criteria

Third-country nationals, excluding European Union, Europe Economic Area (EEA) and Swiss are eligible. Nationals from (or have close ties with) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela are ineligible.

To be eligible for the Startup Residence Programme, an applicant must fulfil the following requirements:

• Has a concrete intention to develop and/or expand their business in Malta

• Is the founder or the co-founder of an enterprise, which has been registered for not more than seven years anywhere globally (including Malta)

• The startup must not have taken over the activity of another enterprise; has not yet distributed profit, and has not been formed through a merger.

• A co-founder would be one of the first entrepreneurs to have set-up the start-up. Proof as to whether the co-founder would have served as a director and/or had legal representation of the company, together with other duties related to the company might be requested.

• A founder, co-founder or core employee applying under this programme must be 18 years and older.

• The maximum number of co-founders of a startup eligible for the Startup Residence Programme is six.

• The founder and/or co-founders benefitting from this programme need to have a physical and tangible presence in Malta not only from a business point of view but also in terms of living in Malta.

• Applicant must have recognised health insurance covering risks in Malta for himself/herself and dependents

• The applicant should be in possession of sufficient financial resources to support himself and any other dependents within existing regulations

• Has no criminal record or pending criminal charges and does not pose any potential threat to the national security, public policy, public health, or public interest.

• Must not have previously had applications for a residence status or citizenship rejected in Malta or abroad

Investment: The incorporated Startup in Malta is required to place a tangible investment and/or paid-up share capital of not less than €25,000 (around Rs 23 lakh). In such case where more than four co-founders apply for the Startup Residence Permit, an additional €10,000 needs to be placed per additional co-founder.

Eligible start-up business verticals: