The Malta Start-Up Residence Programme

The Start-Up Residence Programme in a nutshell

The Malta Start-Up Residence Programme, which combines entrepreneurship and residency into one programme, is aimed at facilitating innovative businesses and the start-up’s founders/co-founders, core employees and their immediate families, to establish themselves in Malta.

This new program is intended to grant a three-year residency permit (which can be extended to a further 5 years once Malta Enterprise and Residency Malta Agency confirms that the start-up is still ongoing and the founder or co-founders still meet the eligibility criteria of the Programme) to non-EU nationals, allowing them to reside in Malta and launch their start up from Malta. Its aim is to facilitate the setting up of innovative start-ups whilst supporting immigration process.

Family members of the start-up founder or co-founders and core employees have the same validity period of the residence permit of the founder, co-founders and core-employee.

Core employees working for the start-up are those who have specialised skills and earn not less that €30,000. Their residence permit will be issued for the same initial three years which are extended to a further three-year period; however, the application for core employees is to be submitted only after the Malta Start-up Residence Programme is approved for the founder/co-founders.

After five years of legally living in Malta, they can then apply for long-term residency.

A. Applicant’s eligibility criteria

To be eligible for the Start-up Residence Programme, applicants must satisfy the following requirements:

1. have a concrete intention to develop and/or expand their business in Malta;
2. be the founder or the co-founder of an enterprise, which has been registered for not more than seven (7) years anywhere globally (including Malta), which fulfils the following:
   • it has not taken over the activity of another enterprise,
   • it has not yet distributed profit,
   • it has not been formed through a merger.

3. A co-founder would be one of the first entrepreneurs to have set-up the start-up. This would also be reflected in the market cap table. In case of a dispute as to whether the individual would be a co-founder, reference will be made to the market cap table until the second year to determine that the co-founders had significant stake in the registered entity. In addition, 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;
4. Must be a third country national, excluding EU, 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. The list of ineligible countries may be revised from time to time;
5. A founder, co-founder or core employee applying under this programme must be 18 years and older;
6. The incorporated start-up in Malta is required to place a tangible investment and/or paid-up share capital of not less than €25,000. If more than four (4) co-founders apply for the Start-up Residence Programme, an additional €10,000 needs to be placed per additional co-founder. In any case, the maximum number of co-founders eligible for the Startup Residence Programme is six (6);
7. The founder and/or co-founders must have a physical and tangible presence in Malta meaning that both business and personally living in Malta. Thus, applicants must live and pay taxes in Malta;
8. Have health insurance covering risks in Malta for himself/herself and dependants;
9. Have sufficient financial resources (proven by means of a bank statement) to support himself and any dependents;
10. Have no criminal record or pending criminal charges and do not pose any potential threat to the national security, public policy, public health, or public interest; and
11. Must not have previously had applications for a residence status or citizenship rejected in Malta or abroad.

B. Start-up eligibility criteria

Start-ups shall be considered eligible if they are or shall be engaged in one or more of the following activities:

Moreover, the business project must meet at least two of the following criteria:

• Propose products and/or services that have the potential to generate income from various geographical markets;
• Produce products and/or services which are new, innovative or substantially improved compared to complementary products on the market;
• Utilize processes which are new or substantially improved compared to those adopted in current complementary products on the market;

C. Business Plan

When applying for the Start-up Residency Programme, applicants are required to mandatorily submit a business plan covering the following points:

1. Company/Group Overview describing the company/ group structure, product/services offered, the team, achievements, investment (both raised or planned), clients and technology;
2. The Malta Project outlining the function, the structure, the employment, marketing, corporate social responsibility and linkages in the local eco-system of the Malta company
3. Financial: main source of revenue, pricing model, funding plan, financials, financial projections for a period of three years and cash flow statement.

D. Fees

The fees applicable for applying for the Malta Start-up Residence Programme are outlined below:

1. €750 for each adult applicant/dependant for a three-year Start-up Residence Programme;
2. €82.50 to Identity Malta Agency for the issuance of the residence card for each individual applicant covering a three-year permit.

For more information on the Malta Start-up Programme, please contact Dr. Sarah Galea,  Dr. Caterina Galati or any other member of IURIS Advocates.