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If you and considering options to broaden your opportunities whether it be across border mobility, better education and healthcare, or wealth diversification this may involve taking up alternative Residency or Citizenship. It is crucial to understand the diffrerences and more so the benefits, rights and responsibilities associated with each.

When discussing legal status in a country, the terms citizen vs residency should be carefully considered and although they sound similar they have distinct meanings and legal implications. Understanding the difference between being a citizen and a resident is crucial, especially when considering relocation or seeking new opportunities abroad.

Here we take a look at some key distinctions and hope to unlock the information to help you weigh up the options of residency versus citizenship.

What Is a Citizen?

A citizen is a person who has full rights and responsibilities in a country. Citizenship is typically acquired through birth within a country’s territory, descent from a citizen parent, or naturalization—a legal process that grants citizenship to a non-native individual.

Rights and Responsibilities of Citizens:

• Voting Rights: Citizens have the right to vote in national elections, which gives them a voice in the country’s governance.
• Passport: Citizens can apply for a national passport, allowing them to travel freely and access consular protection abroad.
• Jury Duty: Citizens may be required to serve on a jury, contributing to the legal system.
• Obligations: Citizens must comply with laws, including paying taxes and, in some countries, mandatory military service.

How to Become a Citizen:

• Birth-right Citizenship: Some countries automatically grant citizenship to individuals born on their soil.
• Descent: Citizenship can be passed down from parents to children.
• Naturalization: This process usually involves residency for a specified period, demonstrating language proficiency, passing a citizenship test, and taking an oath of allegiance.

What Is a Resident?

A resident is a person who lives in a country but does not necessarily have the full rights of a citizen. Residency can be temporary or permanent, and it is typically acquired through a visa, such as a work, student, or family visa.

Types of Residency:

• Temporary Residency: Allows individuals to live in a country for a limited period. Temporary residents often have restricted rights and need to renew their status periodically.
• Permanent Residency: Grants more stability, allowing individuals to live indefinitely in the country. Permanent residents usually have more rights than temporary residents, such as the ability to work or study without additional permits, but they do not have all the rights of citizens, like voting in national elections.

How to Become a Resident:

• Visa Applications: To obtain residency, one must apply for a visa based on employment, education, or family connections.
• Residency Permits: Upon arrival, residents often need to register with local authorities and obtain a residency permit.

Key Differences Between Citizens and Residents:

While both citizens and residents live in a country, their rights and responsibilities differ significantly. Here are some of the key distinctions:

• Voting Rights: Only citizens can vote in national elections. Residents may have voting rights in local elections, depending on the country’s laws.
• Passports: Citizens are eligible for national passports, while residents may have to use a passport from their country of origin.
• Legal Protections and Obligations: Citizens have broader legal protections and responsibilities, such as jury duty and, in some cases, military service.
• Path to Citizenship: Residents may eventually become citizens through naturalization if they meet specific criteria, such as length of residency, language proficiency, and integration into the community.

 

Why the Difference Matters

Understanding the difference between citizenship and residency is essential for anyone considering living or working abroad. The decision to pursue citizenship or residency depends on personal goals, legal requirements, and the rights one wishes to acquire.

Knowing whether you should pursue citizenship or residency is crucial depending on your situation and long-term plans. Each status comes with its own set of rights, responsibilities, and opportunities, making it important to understand which best aligns with your personal goals.

 

Whilst this information is provided it must be reminded to check carefully the regulations according to your jurisdictions. If you’d like to discuss how a South African, British National or United States of American citizen can live in Europe contact Merle for a free consultation on merle@maltalifestyle.com.

Are you looking for game changing opportunities for your life, be it finance, personal growth, education, quality of life, or safety – Whether you’re mapping out personal goals, family plans, or business strategies, this technique can guide to seizing new opportunities in various aspects of life.

Dive into the “Six Thinking Hats” technique by Dr. Edward de Bono, where each colored hat represents a distinct perspective. Picture yourself metaphorically wearing these hats—diving into facts, emotions, critical thinking, optimism, creativity, and managing the thinking process. This approach allows you to explore situations from different depths, promoting a comprehensive and effective decision-making process in personal, family, or business scenarios.

Imagine you have six different-colored hats, each representing a unique perspective: White for facts and information, Red for emotions and intuition, Black for caution and critical thinking, Yellow for optimism and positive ideas, Green for creativity and new possibilities, and Blue for managing the thinking process. By metaphorically wearing these hats, individuals can explore a situation from various angles, fostering well-rounded and effective decision-making in personal, family, or business contexts.

Believe it or not, I’ve had the pleasure of crossing paths with Dr. De Bono during some business interactions in training and events in South Africa. Little did I know back then that I would eventually find myself living in the beautiful Malta, his birthplace. Life has a way of surprising us, doesn’t it?

Nestled in the heart of the Mediterranean, Malta beckons expats with its rich history, welcoming community, and a diverse cultural tapestry. The island nation offers investment opportunities in a thriving economy, complemented by picturesque landscapes, a Mediterranean climate, and excellent healthcare and education facilities, creating an ideal haven for expatriates.

I have been living in Malta for 12 years and assisting people and family with relocating, having done it myself a couple of times including living in Gibraltar, Mauritius and partner from the UK and Isle of Man. Utilising the Thinking Caps here are some questions you could ask about relocating.

For information on how Merle can assist you contact merle@maltalifestyle.co.za whether you are looking at prime property investments, relocation options or setting up business and perhaps hosting an event in Malta.

As you plan your getaway to this enchanting island, here’s a curated guide on the absolute must-see attractions and experiences.

Valletta – A Stroll Through Time

Your journey begins in Valletta, the capital and a UNESCO World Heritage site. Steeped in history, Valletta invites you to explore its cobblestone streets, visit the Upper Barrakka Gardens for a panoramic view, and revel in the architectural marvel of Saint John’s Co-Cathedral. Don’t forget to witness the noon day gun salute at Fort St Elmo!

Three Cities – Fortresses Across the Harbor

Cross the Grand Harbour from Valletta to discover the Three Cities – Vittoriosa, Senglea, and Cospicua. Immerse yourself in the maritime history at the Malta Maritime Museum, explore Fort St. Angelo, and enjoy a ferry ride or bus journey.

Gozo Day Trip – Sister Island Serenity

Escape to Gozo for a day, reachable by ferry from Valletta or Ċirkewwa. Explore Victoria’s medieval Citadel, marvel at the megalithic temples, and relax on the sandy shores of Ramla. The azure waters and natural wonders await.

Blue Grotto and Megalithic Marvels

Discover the mysteries of Malta’s past at the UNESCO-recognized megalithic temples of Ħaġar Qim and Mnajdra. Experience the enchanting Blue Grotto with its magical play of light on the cave walls.

Mdina – The Silent City

Step back in time as you stroll through the narrow streets of Mdina, Malta’s former capital. Admire medieval and baroque architecture, visit St. Paul’s Cathedral, and explore the nearby Domus Romana. Don’t miss the Game of Thrones vibes at the main gate!

Golden Bay, Comino’s Blue Lagoon, and More

Indulge in the sun-soaked beaches of Golden Bay, Ghajn Tuffieha Bay, and Mellieha. For a truly mesmerizing aquatic experience, venture to Comino’s Blue Lagoon with its crystal-clear waters.

Popeye Village – Movie Magic

For a touch of cinematic charm, head to Anchor Bay and explore Popeye Village, the original film set for the 1980 blockbuster. Enjoy family-friendly activities, bask in the sun, and take in the Mediterranean vibes.

 

Malta at a Glance

Malta, a European archipelago nestled in the heart of the Mediterranean Sea, is renowned for its rich history, vibrant culture, and breathtaking landscapes. Comprising three main islands—Malta, Gozo, and Comino—it boasts a blend of diverse influences, from Roman to British, reflecting its strategic location and historical significance.

Benefits of Living in Malta

• EU Membership: As a member state of the European Union since 2004, residents of Malta enjoy the benefits of free movement, trade, and the security of being part of a larger political and economic entity.
• English-Speaking Nation: For South Africans looking to move abroad, Malta’s official bilingual status, with English as a primary language, eases the transition. This not only facilitates day-to-day interactions but also makes business, education, and administrative processes straightforward.
• Climate: Malta enjoys over 300 days of sunshine each year, with mild winters and warm summers— perfect for outdoor enthusiasts.
• Rich Culture: From ancient Megalithic Temples to the Baroque architecture of Valletta (Malta’s capital), the country is a treasure trove of history
• Lifestyle: With a thriving nightlife, excellent dining options, and regular festivals, there’s always something happening.
• Safety: Malta consistently ranks among the safest countries in Europe, with a low crime rate and friendly locals.
• Healthcare: Benefit from Malta’s world-class healthcare system, replete with state-of-the-art hospitals and clinics, ensuring quality care for all residents.

Why is Malta Attractive for Property Investment

Malta’s property market has consistently proven to be a lucrative venture for investors, both local and international. Here are some compelling reasons why Malta stands out as an attractive destination for property investment:

• Proven Return on Investment: Over the years, Malta’s real estate market has demonstrated substantial and consistent growth. With the island’s strategic EU location and increasing demand for property there, investors can be assured of a strong return on their investments.
• High Rental Yields: With an influx of tourists and expats, rental properties, especially in prime areas, have seen substantial returns.
• Favourable Tax Regime: Malta boasts a tax system that’s advantageous for property investors. Notably:
• No Ownership or Wealth Tax: Investors can hold property without incurring annual wealth taxes.
• No Inheritance Tax: Property passed down through generations remains untaxed, allowing families to preserve their assets without additional financial burdens.
• Simple Tax on Sale: Property sales are subject to a final withholding tax ranging between 5%-8%. There’s no additional Capital Gains Tax to worry about.
• Reasonable Stamp Duty: A moderate stamp duty rate of 5% applies, making property transfers more cost-effective.
• Beneficial Rental Income Tax: Rental predictability for property owners.
• No VAT on Property Transfer: Adding to the list of financial incentives is the absence of VAT on the transfer of immovable property. This further reduces the costs associated with buying and selling real estate in Malta.
• Strong Legal System: Malta’s legal system, rooted in British law, ensures the protection of property rights, giving investors peace of mind.

Given these attractive financial incentives, combined with Malta’s stable economy, thriving tourism sector, and the inherent charm of the island, it’s no wonder that property investment in Malta is seen as a promising and profitable endeavour.

Types of Properties in Malta

Malta offers a diverse range of properties to suit every investor’s needs:

• Historical Townhouses: Located in the heart of Malta’s ancient cities, these properties are often adorned with traditional Maltese balconies and courtyards.
• Luxury Apartments: Especially prevalent in areas like Sliema and St. Julian’s, these modern apartments offer sea views and top-notch amenities.
• Farmhouses: Mainly found in Gozo, these rustic properties are perfect for those looking for a tranquil retreat.
• Villas: Scattered around the island, villas in Malta often come with a pool and spacious gardens, perfect for families.
• Maisonettes: These are single-story residences, often with their own entrance, similar to a small house.

Residency & Citizenship Schemes

For non-EU nationals, Malta presents an abundance of residency and citizenship options, providing a gateway to the European Union, the Schengen Zone, and a high standard of living.

Residency Options in Malta for Non-EU Nationals:

• Global Residence Programme (GRP): Tailored for affluent individuals from outside the EU, Switzerland, or the European Economic Area, the GRP offers a special tax status. Beneficiaries are not taxed on income arising outside Malta unless it’s received in Malta, and a flat rate of 15% tax applies to income received in Malta.
• Nomad Visa: This visa is perfect for remote workers and digital nomads. It allows individuals to live and work in Malta while being employed by companies located outside the country.
• Retirement Programme: Malta’s Retirement Programme is designed for EU, EEA, and Swiss nationals who are not in an employment relationship and are in receipt of a pension as their regular source of income. Beneficiaries under this program are subject to a flat rate of 15% tax on foreign income received in Malta. The Retirement Programme (RP) has recently also been made available to individuals who want to relocate to Malta and are not citizens of an EU Member State, European Economic Area (EEA) or Switzerland (e.g., South Africans).

Citizenship by Investment in Malta:

The Citizenship by Investment for Exceptional Services by Direct Investment program allows individuals and their dependents to acquire Maltese citizenship through a direct investment. Key requirements include a significant government contribution, a property investment or lease in Malta, and a donation to a registered NGO.

Benefits of obtaining Maltese Citizenship are manifold. They include visa-free travel to over 170 countries, the freedom to live and work in the EU, and access to the Schengen area, among others.

About MaltaLifestyle

MaltaLifestyle serves as your bridge to the enchanting Mediterranean oasis of Malta. Established by Merle Whale, a South African expatriate with over ten years of experience in Malta, our team is dedicated to offering in-depth guidance on every aspect of Maltese life. From relocating and property investment to enhancing your lifestyle, or growing your business. Trust in MaltaLifestyle for a hassle-free experience. Merle, with her rich corporate and hospitality background, has facilitated numerous families in their move to Malta. Her vast expertise and connections ensure unparalleled support during your transition. Additionally, as the founder of SAFFAS in Malta’s expat community, Merle guarantees a warm welcome and a robust support system upon your arrival in Malta. Dive into a new chapter filled with Malta’s allure and myriad of opportunities, with MaltaLifestyle by your side.

Join Our Webinar

On Wednesday, 22 November, at 12:00 OR 18:00 (GMT+2), join our webinar titled, “MALTA PROPERTY: A SMART INVESTMENT” Delve deep into the rewarding realm of property investment in Malta. Explore the multitude of financial benefits, such as impressive ROI, no inheritance tax, and more. Understand Malta’s enticing residency and citizenship schemes, which offer many advantages for potential investors. Whether you envision retirement or an investment in Malta, this session is tailored to equip you with the knowledge to turn those dreams into reality. Don’t miss out; register now!

For more details or queries, visit our website, drop us an email at relax@maltalifestyle.co.za, or connect via WhatsApp on +27 82 574 4661.