Table of Contents Malta After the Exit: Why Wealthy Former Entrepreneurs Move Here Tax Benefits Malta: Non-Dom Status and What It Really Means Malta Residency Programme: Your Path to Permanent Residency Buying Property in Malta: Turning the Sea View Dream into Reality Banking in Malta: Opening Accounts as a Former Entrepreneur Post-Exit Lifestyle: What Life as a Wealthy Resident Is Really Like The Most Common Pitfalls and How to Avoid Them Step-by-Step: Your Path to Malta Residency Frequently Asked Questions You’ve sold your company, the champagne has been drunk, and the initial congratulations are fading away. Now, you’re left wondering: what’s next after the exit? While your tax advisor raves about Malta and floods you with glossy brochures of Mediterranean tax havens, you’re starting to question if it’s really as easy as it sounds. I’ve lived in Malta for three years and have guided dozens of former entrepreneurs through their relocation here. The good news: Malta truly is a tax haven with 300 days of sunshine a year. The realistic news: the path to getting there is rockier than most consultants would have you believe. Let me walk you through what you’re really up against. Malta After the Exit: Why Wealthy Former Entrepreneurs Move Here In the past five years, Malta has seen a proper boom in affluent newcomers. The reason is simple: nowhere else in the EU can you find a better combination of tax benefits, infrastructure, and quality of life. The Magic Numbers: What Malta Offers Tax-Wise Here are the facts your tax advisor probably already knows by heart: With Non-Dom status (Non-Domiciled Resident), you pay tax in Malta on foreign income only if you bring it into the country. This is called the Remittance Basis—meaning only the money you actually remit to Malta is taxed. Specifically: If you sell your German company for 10 million euros and keep the money in a Swiss account, you pay zero taxes in Malta. Only when you remit, say, 500,000 euros to Malta, will that amount be taxed at Malta’s rates. Why Malta Instead of Monaco or Dubai? I hear this question all the time. Monaco is pricier and more cramped, Dubai often feels too culturally distant for Europeans. As an EU citizen, Malta offers something unique: you retain all EU rights, can freely invest in Germany, and still enjoy massive tax benefits. One of my clients, a former Berlin fintech founder, put it perfectly: “In Monaco, I’d pay three million for an 80-square-meter apartment without a sea view. Here, I got a villa with a pool for one million and save 400,000 euros in taxes each year.” The Reality Check: What Malta Isn’t Malta is not the Caribbean. The bureaucracy can be nerve-wracking, the summer heat is brutal, and if you’re expecting Maltese tradespeople to work to German standards, you’re in for a nasty surprise. Plus, Malta is small. Really small. At 316 square kilometers, it’s smaller than Munich. After a year, you’ll know every beach, every restaurant, and probably half the German-speaking expat community. What does that mean for you? Malta works as a place of residence if you have realistic expectations and are willing to adapt to a different mindset. Tax Benefits Malta: Non-Dom Status and What It Really Means Non-Dom status is the backbone of Malta’s tax strategy for wealthy newcomers. But be careful: the rules are more complex than they first appear. Non-Dom Status: Understanding the Basics Non-Domiciled Resident means you’re tax-resident in Malta without having moved your domicile there. You only pay Maltese taxes on: Income from Maltese sources Foreign income brought into Malta (Remittance Basis) Capital gains from Maltese assets Tax rates range from 15% to 35%, depending on your income level. For most former entrepreneurs, the relevant figure is the top rate of 35%, which only applies to taxable income above €60,000. The €15,000 Rule: Minimum Tax for Non-Doms Here’s the first reality check: even as a Non-Dom, you pay a minimum tax of €15,000 per year, no matter how much money you bring into Malta. This rule was tightened in 2024 and applies to all new Non-Dom residents. Example: you remit only €50,000 to Malta and would normally owe €7,500 in tax. Instead, you pay the minimum of €15,000. That’s the price for tax-free status on wealth parked abroad. When Do You Lose Non-Dom Status? Non-Dom status isn’t forever. You lose it automatically if: You live in Malta for more than 17 years You were born in Malta (unless you had at least 7 years abroad) You make Malta your permanent center of life After 17 years, you become Fully Tax Resident and pay tax in Malta on your worldwide income. For most former entrepreneurs, that’s not an issue—17 years is a long time. Using Double Taxation Agreements Malta has double taxation treaties with many countries. This means if you pay tax on income in Germany, it will be credited against your tax bill in Malta. What does this mean for you? Non-Dom status is a powerful tool, but it requires careful planning. Consult a specialized tax advisor before making the move. Malta Residency Programme: Your Path to Permanent Residency Malta offers several routes to residency. For wealthy former entrepreneurs, two programs matter: the Malta Permanent Residence Programme (MPRP) and the Ordinary Residence Programme. Malta Permanent Residence Programme (MPRP): The Gold Standard The MPRP is the most direct path to permanent residency. The requirements are clear: Category EU Citizens Non-EU Citizens Minimum Investment €300,000 (purchase) or €12,000/year (rent) €350,000 (purchase) or €16,000/year (rent) Administration Fee €40,000 €40,000 Processing Time 4-6 months 6-8 months Annual Minimum Stay None None The key advantage: you don’t have to reside in Malta year-round to keep your residency. That makes the MPRP especially attractive for ex-entrepreneurs seeking flexibility. Ordinary Residence: The Classic Route The Ordinary Residence Programme is cheaper but less flexible. You need to provide: Proof of sufficient funds (minimum €14,000/year for singles) Health insurance Clean criminal record Property in Malta (purchase or rent) The downside: you must actually live in Malta and spend at least 183 days a year in the country. The Application Process: What to Expect I regularly guide clients through the application process. Here’s the reality: it takes longer than advertised, and you’ll need plenty of patience. Typical MPRP process: Document Collection (4-6 weeks): Police checks, proof of income, apostilles Property Search (2-8 weeks): Depending on your requirements Application Submission (1 day): At the Residency Malta Agency Due Diligence (8-12 weeks): Background checks Approval and ID Card (2-4 weeks): The final step Practical tip: Hire a local lawyer to manage the process. The €5,000-8,000 in legal fees are money well spent. Residency vs. Citizenship: What’s the Difference? Malta also runs a citizenship program (Malta Citizenship by Investment), but that’ll set you back at least €690,000 plus property investment. For most former entrepreneurs, residency suffices—you’ll get the same tax advantages without having to invest millions. What does this mean for you? Budget at least a year for the entire residency process. The investment is worth it, but don’t underestimate the paperwork. Buying Property in Malta: Turning the Sea View Dream into Reality Malta’s property market is hot. For ex-entrepreneurs with the right budget, it’s often manageable—if you know the rules. Restrictions for Foreigners: What You Can Buy If you’re not Maltese, you can’t just buy any property you want. The Acquisition of Immovable Property by Foreigners Act sets clear boundaries: One main residence: Without special permit if you’re a resident Second home: Only with a special permit Commercial property: Only in designated zones Agricultural land: Virtually impossible Permits for additional properties cost 2% of the purchase price and can take up to six months. The Best Areas for Affluent Buyers After three years’ experience, I can tell you: location determines lifestyle and resale value. Here are my top picks: Area Price Level Target Group Highlights St. Julian’s (Spinola Bay) €8,000-15,000/m² Business Expats Restaurants, nightlife, new developments Sliema (Seafront) €10,000-20,000/m² Families, retirees Promenade, shopping, established area Ta Xbiex €12,000-25,000/m² Ultra-High-Net-Worth Yacht marina, luxury penthouses Mdina/Rabat €4,000-8,000/m² For authenticity seekers Historic, quiet, traditional A client of mine bought a 200-square-meter apartment in Ta’ Xbiex in 2022 for €2.1 million. Today, it’s worth at least €2.4 million. So far, Maltese property has been a solid investment. New Build vs. Old Property: Key Differences Malta is building at a crazy pace. You’ll see cranes and new developments everywhere. The choice between new and old property is fundamental: New Build Advantages: Modern fittings (A/C, insulation) Elevators (important for Malta’s many stairs) Parking spaces (like gold in Malta) Warranty and service Old Property Charm: Characteristic sandstone architecture Larger rooms, higher ceilings Established neighborhoods Often better locations My advice: if you’re under 50 and value modern comforts, choose new construction. If you want character and authenticity, invest in a renovated old property. The Buying Process: Avoiding Pitfalls Property purchases in Malta have their traps. The most important warning signs: Lack of permits: Many apartments have illegal extensions Commonhold issues: Unclear responsibilities for communal areas Airspace rights: You might not own the space above your apartment Water problems: Pressure and supply can be problematic A good Maltese lawyer costs €1,500-3,000 but can save you from expensive mistakes. Don’t skimp on this. What does this mean for you? Maltese property is a good investment, but always get professional advice. The €20,000-30,000 for lawyers, surveyors, and due diligence are money well spent for million-euro deals. Banking in Malta: Opening Accounts as a Former Entrepreneur Opening a bank account in Malta has become both simpler and more complex for wealthy former entrepreneurs. Simpler, because banks love well-off clients. More complex, due to stricter compliance rules. The Banking Landscape: Your Options Malta has a surprisingly diverse banking landscape. For affluent clients, four banks matter: Bank Target Group Minimum Deposit Highlights Bank of Valletta (BOV) Day-to-day banking €200 Biggest bank, best infrastructure HSBC Malta International banking €25,000 Premier Banking, global network Lombard Bank Private banking €100,000 Personal service, investment focus APS Bank Local alternative €500 Maltese, good service My recommendation: start with HSBC or Lombard for private banking, and open a BOV account for everyday business. Maltese tradespeople and services often only accept BOV transfers. Know Your Customer (KYC): What Banks Want to Know After recent EU money laundering scandals, Maltese banks are highly cautious. When opening accounts, former entrepreneurs should expect to provide: Source of Wealth Statement: Detailed account of your fortune’s origins Company sale documentation: Sale contract, due diligence reports Tax clearance certificate: From your home country References: From your former bank and possibly business partners Business plan: What you intend to do in Malta One client needed three months and four meetings before HSBC unlocked his account. The reason: he couldn’t fully document how he originally raised his startup capital 15 years earlier. Multi-Currency Banking: EUR, USD, and Beyond As a former entrepreneur, you likely have assets in multiple currencies. Maltese banks offer sophisticated multi-currency services: Currency accounts: USD, GBP, CHF often at no extra charge FX trading: Better rates than German banks Hedging instruments: Forwards and options available Investment services: Access to global markets HSBC Malta, for example, offers currency accounts in a range of currencies with no minimum balance. Private Banking Services: What to Expect From €500,000 in assets, you can access real private banking in Malta, including: Personal relationship manager Tailored investment solutions Tax-efficient structuring Concierge services (yacht charter, event tickets, etc.) Lombard loans secured against securities Fees are moderate: HSBC Malta charges 0.75% p.a. for asset management from €1 million, cheaper than most German private banks. Banking Pitfalls: What Can Go Wrong Three things can cause trouble with Maltese banking: Reporting obligations: Malta automatically reports to German tax authorities (CRS) Account freezes: Banks act fast if money flows are unclear Service quality: Maltese banks are slower than German ones What does this mean for you? Allow at least three months to fully set up your banking. The banks want you as a client, but have to stick to strict compliance rules. Post-Exit Lifestyle: What Life as a Wealthy Resident Is Really Like Life as a wealthy former entrepreneur in Malta is different than you might expect. Better in some ways, more challenging in others. Let me paint you a realistic picture. The Community: Your New Network Malta boasts a surprisingly active expat community of affluent individuals. In Sliema and St. Julian’s, you’ll regularly meet other former entrepreneurs, private equity partners, and family office managers. It’s a small scene. At events hosted by the Malta Business Network or at the Corinthia Hotel, you see the same faces. This can be a blessing and a curse: close business ties form quickly, but privacy is scarce. A friend of mine, an ex-founder from Munich, said, “After six months, I knew every German Malta resident personally. It’s a village with 500,000 inhabitants.” Infrastructure for High-Net-Worth Individuals In recent years, Malta has tailored its offerings for wealthy residents: Service Quality Cost Highlights Private Healthcare Excellent €150-300/consult Mater Dei Hospital, private clinics International Schools Good €8,000-15,000/year Verdala, St. Edward’s College Fine Dining Surprisingly good €80-150/person Noni, Bahia, Under Grain Luxury Shopping Limited Variable Tigné Point, online ordering from Italy What Malta doesn’t have: luxury shopping like Munich or Zurich. For designer fashion, you’ll fly to Milan or order online. Leisure Options: More Than Just Sun and Beaches Malta is about more than 300 days of sun. The island offers a surprising range of leisure activities: Water Sports: Yacht charters from €2,000/day Diving (Malta has some of Europe’s top dive sites) Kitesurfing and windsurfing Sailing trips to Gozo and Comino Culture and History: Valletta (UNESCO World Heritage Site) Mdina (“The Silent City”) Megalithic temples (older than Stonehenge) Opera House and Teatru Manoel Golf: Malta has an 18-hole championship course (Royal Malta Golf Club). The Social Challenges Not everything that glitters is gold. Malta has its social challenges: Isolation: The island can feel lonely, especially in winter Language barrier: Maltese is virtually impossible for Germans to learn Mindset differences: “Mañana” isn’t just Spanish here Limited cultural scene: No opera, no big theater A client from Hamburg told me after a year, “Malta is perfect for six months. Any longer and I’d go stir-crazy.” Networking and Business Opportunities Malta is developing into an interesting business hub. Its strong suits: Financial services: EU passporting for fintech and funds Gaming: Over 300 gaming companies are licensed here Blockchain/crypto: Malta was particularly crypto-friendly 2018–2020 Shipping: Attractive for yacht registries thanks to the EU flag Many former entrepreneurs invest in Maltese startups or set up family offices. The regulations are EU-aligned but more pragmatic than in Germany. What does this mean for you? Malta offers a relaxed yet demanding lifestyle. The island works well as a base—if you want to stay flexible. The Most Common Pitfalls and How to Avoid Them In three years of advising relocations to Malta, I’ve seen almost every mistake ex-entrepreneurs can make. The good news: most are avoidable once you know what to watch out for. Pitfall 1: Underestimating Substance Requirements Malta is not a mailbox domicile. The Maltese tax authorities (Malta Inland Revenue) increasingly check whether your residence has real substance. What they want to see: Regular stays (even as a Non-Dom) Local connections (bank accounts, contracts, memberships) Economic activities in Malta Family or personal ties A client from Frankfurt thought he could spend just two weeks a year in Malta. It worked for two years—until the Frankfurt tax office declared his Malta residence a “sham.” Pitfall 2: Misunderstanding the Remittance Basis The Remittance Basis is trickier than most people think. It’s not just about wiring money to Malta. Even indirect use of foreign income can count as remittance. Classic mistakes: Using your German credit card in Malta (counts as remittance) Managing foreign investments from Malta Gifting money to family members living in Malta Paying Maltese bills from a foreign account Solution: a strict Clean Capital system. Everything you spend in Malta must come from funds that are tax-free or already taxed. Pitfall 3: Ignoring the 183-Day Rule To be tax resident in Malta, you must spend at least 183 days a year there. Many ex-entrepreneurs underestimate this requirement. How days are counted: Arrival day counts, departure day doesn’t Transit stays at the airport don’t count Time on Maltese ships/yachts does count Stays on Gozo and Comino count as well Keep a meticulous record of your days. A smartphone app or simple spreadsheet is sufficient. Pitfall 4: Overlooking Double Tax Obligations Malta residence doesn’t automatically end your German tax liability. You’re still taxable in Germany if: You keep a home in Germany You spend more than 183 days a year in Germany Your center of life remains in Germany You rent out German property Solution: clean break. Cancel your German residence, move your primary address to Malta, minimize German ties. Pitfall 5: Forgetting Compliance Reporting Malta has extensive reporting obligations for residents: Report Deadline Penalty for Late Filing Tax return June 30 €100-1,000 Foreign account reporting March 31 €50-500 Beneficial ownership declaration January 31 €100-5,000 FATCA/CRS reporting June 30 €100-1,000 Hire a local tax advisor. The €3,000-5,000 per year is money well spent. Pitfall 6: Unsettled Social Insurance Malta residence doesn’t automatically mean Maltese social insurance. You need to actively choose: Maltese social insurance: Compulsory contributions but EU protection Private health insurance: More flexible but pricier German insurance: Available only under certain circumstances Many ex-entrepreneurs fall into a coverage gap. What does this mean for you? Malta residence isn’t a free ride. You need professional advice and active management. But if you do it right, it’s one of the best deals in Europe. Step-by-Step: Your Path to Malta Residency Now for the nitty-gritty. Here’s your roadmap to relocating to Malta—based on three years’ experience with successful Malta residents. Phase 1: Prep Work in Germany (6–12 Months Before Relocation) Months 1–2: Advance Tax Clarification Engage specialized tax advisors (Malta + Germany) Analyze tax consequences of business sale Develop optimal timing strategy Plan clean capital structure Months 3–4: Document Preparation Apply for apostilled police certificates Gather proof of income for the last 3 years Assemble company sale documentation Organize reference letters from banks/lawyers Prepare health insurance proof Months 5–6: Malta Reconnaissance Extended stay trip to Malta (2–4 weeks) Arrange property viewings Meetings with Maltese lawyers/tax advisors Preliminary banking meetings Lifestyle testing (different areas, seasons) Phase 2: Residency Application (3–6 Months) Month 7: Securing Property Select a property (buy or rent) Sign purchase agreement/lease Notary appointment for property purchase Get insurances in place Month 8: Residency Application Submission Submit MPRP or Ordinary Residence application File documents at Residency Malta Agency Provide biometric data Pay application fee (€40,000 for MPRP) Month 9–12: Due Diligence and Approval Background check by Maltese authorities Submit further documents if needed Receive approval letter Apply for Maltese ID card Phase 3: Moving and Integrating (3–6 Months) Banking Setup Open Maltese bank accounts (HSBC + BOV recommended) Activate multi-currency services Configure private banking services Set up international wire transfers Administrative Integration Register for tax with Malta Inland Revenue Sort out social insurance Switch health insurance to Malta Exchange driver’s license (if desired) Register for utilities (electricity, water, internet) Lifestyle Integration Find local service providers (GP, lawyer, tax advisor) Attend networking events (Malta Business Network) Join sports/hobby clubs Build local contacts Phase 4: Ongoing Optimization & Compliance Annual Duties Task Deadline Responsibility Maltese tax return June 30 Local tax advisor Confirm deregistration in Germany May 31 German tax advisor Renew residency card Before expiry Lawyer/self Banking compliance Ongoing Private banker Cost Overview: What Malta Residency Really Costs One-off costs: MPRP application fee: €40,000 Lawyer/tax advisor: €15,000-25,000 Property (minimum investment): €300,000+ Moving costs: €5,000-15,000 Setup costs (banking, etc.): €5,000 Ongoing annual costs: Minimum tax: €15,000 Tax advice: €5,000-10,000 Property maintenance: €5,000-15,000 Living expenses: €50,000-100,000+ Total investment in Year 1: €435,000-€560,000 (excluding living expenses) Timeline Reality: Why Everything Takes Longer In theory, you could get Malta residency in 12 months. In reality, 18–24 months is more realistic. Why? Property market: The best places go fast Bureaucracy: Maltese authorities work slowly Banking: KYC is increasingly laborious Integration: Social/business networks take time What does this mean? Start early and be realistic. Malta residence is a marathon, not a sprint—but the finish line is worth it. Frequently Asked Questions Do I have to live in Malta full-time as a resident? No, with the MPRP (Malta Permanent Residence Programme) there is no minimum stay required. However, to fully benefit from the tax advantages, you do need to be tax resident (183 days per year). Many wealthy residents spend only 6–8 months a year in Malta. Can I keep my German passport? Yes, Malta residency has nothing to do with citizenship. You keep your German passport and all EU rights. Only if you apply for Maltese citizenship (a separate process) could there be conflicts. What are the taxes on capital gains from selling my company? As a Non-Dom in Malta, you only pay tax on capital gains if you bring the money into Malta (Remittance Basis). If the proceeds stay abroad, theyre tax-free in Malta. On remittance, the rate is between 0% and 35%, depending on the amount. What happens after 17 years on Non-Dom status? After 17 years, you automatically become Fully Tax Resident and are taxed on worldwide income in Malta. Many residents then move elsewhere or restructure their assets. 17 years is a long time for tax planning, though. Is Malta banking safe after previous scandals? Yes, the major Maltese banks (BOV, HSBC, Lombard) are EU-regulated and safe. The scandals mainly concerned smaller banks and fintechs. Malta has significantly tightened compliance standards since 2019. How expensive is life in Malta compared to Germany? Malta is about 20–30% cheaper than major German cities, but more expensive than you might think. Restaurants and services cost less, but property and imported goods are pricier. A high-net-worth lifestyle runs around €80,000–150,000 per year. Can I keep running my German company from Malta? In principle, yes, but it can have tax consequences. If you manage a German company from Malta, it could become taxable in Malta. Always consult specialized tax advisors before setting up such structures. Do I need a Maltese tax advisor? Absolutely. Maltas tax law is complex and changes frequently. A local advisor costs €3,000–8,000 per year, but can prevent mistakes that would cost far more. Invest in qualified advice. How is healthcare in Malta? Malta has a good healthcare system. The state Mater Dei Hospital meets EU standards, there are several private clinics, and many doctors speak German or English. For complex treatments, many residents travel to Germany or Switzerland. What are the main drawbacks of living in Malta? The main downsides: the island’s limited size (can feel claustrophobic), intense summer heat, sometimes slow bureaucracy, limited cultural scene, and the fact that all wealthy expats know each other (little privacy).
