Investment Factsheet

Malta EU CitizenshipLombard Loan Investment Strategy

Comprehensive Lombard loan analysis demonstrating wealth preservation through portfolio leverage versus traditional liquidation for your Malta EU Citizenship investment — get an EU passport while your portfolio keeps growing

Investment Time Horizon

Educational Illustration: The projections and illustrations shown below are hypothetical examples for educational purposes only and are not guaranteed. Actual investment results will vary based on market conditions, portfolio composition, individual circumstances, and other factors. Past performance does not guarantee future results. Consult with qualified financial and tax advisors before making investment decisions.

Investment Strategy Comparison

Malta EU Citizenship Investment Analysis

Date

Investment Required

€1,300,000

Investment Portfolio

€2,600,000

Loan-to-Value

50%

Time Horizon

5 Years

Net Asset Value Projection

Chart shows net asset value over time. Lombard strategy maintains portfolio growth while traditional liquidation loses opportunity.

Strategy Breakdown

Lombard Loan Strategy

Initial Portfolio Value€2,600,000

Portfolio After 5yr (@ 9%)€3,820,253

Loan Amount€1,300,000

Interest Cost (@ 3% on loan)-€195,000

Net Portfolio Value€3,625,253

Traditional Liquidation

Initial Investment Amount€1,300,000

Capital Gains Tax (20%)-€130,000

Inflation Erosion (2% p.a.)-€122,550

Opportunity Cost (9% p.a.)-€585,000

Net Value+€462,450

Performance Summary

Lombard Net Value

€3,625,253

After 5 years

Traditional Net Value

+€462,450

After 5 years

Wealth Preservation

€3,162,803

Additional value retained

Investment Conclusion: The Lombard loan strategy preserves €3,162,803 in additional wealth over 5 years compared to traditional liquidation. By keeping your portfolio invested, you avoid capital gains tax, maintain compounding returns, and protect against inflation erosion and opportunity cost—resulting in a net value of €3,625,253 versus just €462,450 with liquidation.

Strategic Advantages

Compounding Returns

Your full portfolio remains invested and continues generating returns, compounding over time rather than being liquidated.

Tax Efficiency

Avoid immediate capital gains tax on liquidation. Loan interest may be tax-deductible depending on structure.

Favorable Rate Spread with Lombard Loans

Securities-backed lending at 3.0% while your portfolio earns 8%, capturing the 5.0% positive spread through portfolio leverage.

In Specie Transfers Accepted

Already have an investment portfolio? Transfer management to us via in specie transfer without selling your holdings. Avoid capital gains tax while accessing Lombard financing.

Liquidity Management

Keep your investment portfolio liquid and working for you rather than tied up in a single immigration investment.

Risk Mitigation

Avoid crystallizing losses if selling during market downturns. Maintain diversification and downside protection.

Interactive Calculator

Lombard vs Liquidation Calculator

See exactly how much more wealth you could build by financing your golden visa instead of selling investments

Configure Your Scenario

Select Programme

IFICI regime - interest deductible

Time Horizon10 years

3 years20 years

Expected Portfolio Return8% p.a.

4% (Conservative)12% (Aggressive)

Lombard Interest Rate4.5% p.a.

3% (Prime client)6% (Standard)

Loan-to-Value (LTV)50%

10%70% (Max)

Portfolio Requirement

Investment Amount

$270,000

Required Portfolio

$540,000

at 50% LTV

Sell Assets

Remaining Portfolio

$270,000

After 10 Years

$582,909.749

Lombard Loan

Full Portfolio Invested

$540,000

After 10 Years (Net of Interest)

$1.04M

Additional Wealth Generated

Lombard Advantage

$461,409.749

+79.2% more wealth over 10 years

Annual Financing Cost

$12,150/yr

Why This Works

Portfolio keeps compounding at 8% while only paying 4.5% interest

No capital gains tax triggered from selling investments

Interest may be tax-deductible in Portugal

Explore Portugal Programme

Lombard Loan Calculator FAQ

How does a Lombard loan calculator work for golden visa financing?

A Lombard loan calculator estimates how much additional wealth you can generate by using your investment portfolio as collateral instead of liquidating assets. It compares the cost of loan interest against the returns your portfolio continues to earn, plus capital gains tax you avoid by not selling.

What LTV ratio should I use in the golden visa loan calculator?

Most Lombard lenders offer 50-70% LTV (loan-to-value) for diversified portfolios. Conservative portfolios may qualify for higher LTV, while concentrated or volatile holdings typically get lower ratios. Start with 50% for realistic projections.

What portfolio return rate is realistic for Lombard loan calculations?

Historical equity market returns average 8-10% annually over long periods. Use 7-8% for conservative projections with a balanced portfolio, or 4-6% for bond-heavy allocations. Never assume guaranteed returns—markets fluctuate.

How much does a Lombard loan cost for a golden visa?

Lombard loan rates typically range from 3-6% depending on loan size, portfolio quality, and lender relationship. Prime private banking clients may access rates as low as 2.5-3%, while standard rates are around 4-5%.

Can I use a Lombard loan for any golden visa programme?

Most programmes accept Lombard-financed investments including Portugal, Greece, Malta, UAE, and the US Trump Gold Card. Some programmes require proof of source of funds, which is straightforward with documented portfolio lending. Check specific programme requirements.

What happens if my portfolio drops while I have a Lombard loan?

If your portfolio value falls significantly, you may receive a margin call requiring you to add collateral or repay part of the loan. Using conservative LTV ratios (40-50%) provides a buffer against market downturns. Most portfolios recover within 4-5 years from major corrections.

Is Lombard loan interest tax-deductible?

In some jurisdictions like Portugal (under IFICI), Switzerland, and Greece (7% regime), Lombard loan interest may be tax-deductible against investment income. Consult a tax advisor in your target destination for specific guidance.

How long does it take to get Lombard financing for a golden visa?

Lombard loan approval typically takes 2-4 weeks once documentation is submitted. With an existing private banking relationship, funding can be available within days. Our clients average 4 weeks from initial consultation to funds disbursed.

Key Assumptions

Investment Required: €1,300,000

Malta's all-in cost usually falls between €1m and €1.3m, depending on the number of applicants and their ages. This example uses the upper end so the collateral figure is not understated.

Loan-to-Value: 50%

Portfolio Required: €2,600,000

Lombard Rate: 3% annually

Market Return: 9% annually

Portfolio Return: 9% annually

Inflation Rate: 2% annually

Capital Gains Tax: 20% (long-term)

Gains Percentage: 25% of position

Time Horizon: 5 years

Important Disclaimer: The projections, returns, and illustrations presented are hypothetical examples for educational purposes only and are not guaranteed. Actual investment performance will vary based on portfolio composition, market conditions, individual tax situations, and other factors. Past performance does not guarantee future results. These illustrations should not be considered as investment advice or a recommendation. Please consult with qualified financial advisors and tax professionals for personalized analysis and advice tailored to your specific circumstances before making any investment decisions.

Ready to Optimize Your Malta EU Citizenship Investment with Portfolio Leverage?

Speak with our wealth management advisors to structure a customized Lombard loan and securities-backed lending solution that preserves your wealth while funding your EU citizenship investment.

Risk notice and scope of this material

This is information, not advice. Nothing on this site is a personal recommendation, an offer, or an inducement to enter into any transaction, and reading it creates no client relationship. It does not account for your circumstances, objectives, tax position or risk tolerance. Take regulated advice in your own jurisdiction before acting.

Borrowing against a portfolio amplifies loss as well as gain. A Lombard or margin facility is secured on your securities. If their value falls, the lender can demand additional collateral or repayment at short notice, and can sell your holdings without your consent and at a time not of your choosing — potentially crystallising losses and a tax charge. Rates are usually variable and the facility is typically repayable on demand.

Residency and citizenship investments are illiquid and often non-refundable. Programme rules, thresholds, processing times and qualifying routes change, sometimes with retroactive effect. Approval is never guaranteed, and a rejected application does not necessarily return your outlay. Figures quoted here are indicative and must be confirmed against the relevant government source before you commit funds.

Past performance tells you nothing about the future. Modelled or illustrative returns are not projections. Currency movement can change the cost of a foreign-denominated obligation independently of investment performance.

We are not a law firm, a tax adviser, a lender or a government authority, and we do not process applications. Immigration, tax and legal matters should be taken to a qualified professional admitted in the relevant jurisdiction.

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