Malta Startup Residence Programme (MSRP): What Non-EU Founders Need to Know

The Malta Startup Residence Programme (MSRP) is a residence route designed to attract innovative entrepreneurs from outside the European Union who wish to establish and grow their business in Malta. Introduced under Subsidiary Legislation 217.30 and administered by Residency Malta Agency in collaboration with Malta Enterprise, the programme combines residence rights with support for startups that demonstrate innovation, scalability and long-term economic potential.

If you are a non-EU entrepreneur considering Malta as your next business destination, here’s what you should know.

Understanding the purpose of the MSRP

The Malta Startup Residence Programme is a residence route for third-country national entrepreneurs, co-founders, selected core employees and their immediate family members.

Rather than focusing on investment alone, the programme evaluates whether a startup has genuine potential to create economic value, introduce innovation and grow from Malta. It is intended to attract businesses that can contribute to the country’s economy while using Malta as a base to access the European market.

Unlike Malta’s Permanent Residence Programme (MPRP), this is not a passive residence route. Successful applicants are expected to relocate to Malta, actively manage or contribute to the business and maintain a genuine physical presence in the country.

What qualifies as an innovative startup?

One of the most common misconceptions about the MSRP is that registering a company in Malta is enough to qualify. In reality, the programme is intended for businesses that demonstrate genuine innovation and the potential for sustainable growth.

As part of the application process, Malta Enterprise assesses whether the proposed startup offers a new or significantly improved product, service, process or business model and whether it has the potential to compete beyond the local market. In addition to innovation, the business should demonstrate commercial viability, scalability and the ability to contribute to Malta’s economy over the long term.

While the programme is often associated with technology startups, it is not limited to a single industry. Eligible businesses may operate in sectors such as software development, artificial intelligence, biotechnology, life sciences, advanced manufacturing, health, sustainability, industrial services and other knowledge-based or technology-enabled activities. Ultimately, each application is assessed on its own merits, with particular emphasis on the startup’s innovative nature, growth potential and overall business model.

Main eligibility requirements

Each application is assessed individually, but founders generally need to satisfy a number of important conditions.

The startup should normally be less than seven years old, and the Maltese company must have a minimum of €25,000 in paid-up share capital or tangible investment. Where more than four co-founders are included, an additional €10,000 investment is required for each additional co-founder, up to a maximum of six founders under the programme.

Applicants must also:

One of the most important parts of the application is the business plan. Malta Enterprise evaluates not only whether the business is innovative but also whether it is realistic, commercially viable and capable of creating long-term economic value.

What about core employees?

The programme is not limited to founders. Startups may also include selected core employees whose specialised knowledge or technical expertise is considered essential to the success of the business.

To qualify, core employees must generally be employed on a full-time basis, receive a minimum gross annual salary of €30,000, and occupy a role that cannot easily be filled through the local labour market. Their inclusion must be justified as part of the overall application submitted by the startup.

How long is the permit valid?

Successful founders and co-founders receive an initial three-year residence permit. Provided the startup continues to satisfy the programme requirements and remains operational, the permit may be renewed for a further five years.

Eligible core employees also receive an initial three-year permit, which may be renewed for an additional three years, subject to continued eligibility.

The programme is designed to support businesses during their early stages while encouraging founders to establish a genuine long-term presence in Malta.

Can your family relocate with you?

Yes. The programme allows founders, co-founders and eligible core employees to include their immediate family members.

his generally covers a spouse or recognised partner, minor children and financially dependent adult children, allowing families to relocate to Malta together. As a practical point, applicants are encouraged to include eligible family members in the initial application, even if some do not intend to relocate immediately, as requests to add family members at a later stage are assessed individually.

It is also important to note that residence permission for family members does not automatically grant access to employment in Malta. Depending on the circumstances, separate employment authorisation trough JobsPlus may still be required before taking up work.

What does the application process look like?

Although every application is different, the process generally follows these steps:

Applicants who require a visa to enter the Schengen Area may be issued with the appropriate visa following approval in principle before completing the residence permit process.

What are the government fees?

The official programme currently provides for the following government fees.

Applicants should also budget for professional fees, company formation costs, legal advice, accounting services and ongoing compliance obligations.

Does the programme offer any tax benefits?

Unlike the Global Residence Programme (GRP) or the Malta Retirement Programme (MRP), the Startup Residence Programme is not a special tax regime.

Founders and co-founders are expected to establish a genuine presence in Malta, live in Malta and comply with the country’s tax and reporting obligations. Any personal or corporate taxation will generally be determined under Malta’s ordinary tax rules, depending on each applicant’s circumstances. Professional tax advice is therefore recommended before relocating or establishing a business.

Does MSRP lead to permanent residence?

Not automatically. The MSRP grants renewable residence rights while the startup continues to satisfy the programme’s eligibility requirements. It does not provide permanent residence or long-term resident status by itself.

However, individuals who continue living legally in Malta may, if they satisfy the relevant legal requirements, become eligible for other residence routes in the future, including Long-Term Resident Status.

Choosing the right path

The Malta Startup Residence Programme reflects Malta’s ambition to attract entrepreneurs who bring innovation, skills and long-term economic value to the country. Unlike passive residence schemes, this programme is built around active business development and genuine relocation. For founders with the right business model, it can provide an opportunity to establish both a company and a life in Malta while accessing the wider European market.

If you are considering launching or relocating an innovative business to Malta, obtaining professional advice before applying can help you assess whether the Startup Residence Programme is the most suitable route for your circumstances and long-term goals. GB Legal, a trusted partner of Expatax Malta, can provide personalised legal advice and guide you through the application process based on your particular circumstances.

Disclaimer

This article is intended for general informational purposes only and should not be considered legal, immigration or tax advice. Every applicant’s circumstances are different, and eligibility for the Malta Startup Residence Programme depends on a range of individual factors and the specific details of the proposed business.