RESIDENCY SCHEME MALTA FOR EUROPEAN CITIZENS
HIGH NET WORTH INDIVIDUALS (HNWIs)
MALTA, a jurisdiction both part of the European Union and the Commonwealth, has always been open to foreign investment both in terms of capital flows and in terms of flows of qualified persons and/or persons of interest to the development needs of the country.
For this reason it considers to attract as residents, individuals with high intensity of wealth and income, through specific programs aimed at Expatriates (EXPAT) and High Net Worth Individuals (HNWIs)
In September 2011, a new residency scheme was introduced in Malta by the Maltese government, granting special tax status to high net worth individuals. Referred to as the High Net Worth Individual Residency Scheme, it gives its holder the right to pay tax at an advantageous rate of 15% on foreign income, with the option to claim exemption from double taxation, but with a minimal payment.
In 2014, the scheme was modified to make it even more attractive
EU CITIZENS (since 2014) – RESIDENCE PROGRAMME– THE RESIDENCE PROGRAMME
MALTAway, in support of the Malta the Singapore of the Mediterranean project, even more attractive to be a resident if you are a high net worth individual. New program to attract High Net Worth Individuals
Property purchase, rental and minimum tax thresholds have been lowered to make the scheme even more attractive:
- property purchase value: reduced from €400,000 to €275,000 and to €220,000 if the property is located in South Malta or Gozo
- property rental threshold: reduced from €20,000 to €9,600 for rentals in Malta and €8,750 in Gozo or South Malta
- minimum taxation on foreign income: reduced from €25,000 to €15,000
- cancellation of any obligation to purchase bonds
- Minimum administration fee reduced by up to €5,500
REAL ESTATE – PROPERTY
Applicants must own real estate in Malta. Such “qualifying real property” must have been purchased since 2014 with a value of not less than € 220,000 (275,000 standard Malta) and must be used by the applicant, and any accompanying dependent members, as their usual residence.
Alternatively, the applicant may choose to rent a property in Malta for a minimum of € 8,750 (9,600 standard Malta) per year.
Financial Resources and Insurance The applicant must also have sufficient stable and regular resources to support himself/herself, and any accompanying dependents. Therefore, applicants must be financially self-sufficient and both the applicant and any accompanying dependents must have adequate health insurance with coverage within the EU. The individual must pass a “good standing and professionalism test” in order to obtain a permit that complies with this scheme.
The permit holder is granted special tax status with the right to pay tax at an advantageous rate of 15% on foreign source income received in Malta along with the option to apply for double taxation exemption. This is subject to a minimum annual tax of €15,000 and €2,500 per dependent companion after any applicable double taxation exemption is claimed.
The beneficiary’s other taxable income (and that of his or her spouse) that is not taxed at the special 15% rate will be taxed at 35%. The beneficiary of this scheme and his or her spouse may not opt for a separate computation of tax.
The application must be submitted to the Commissioner for Revenues through an authorized intermediary. MaltaWay’s Partner Avv. Rossella Gianazza is an Authorised Registered Mandatory
A one-time registration fee of € 5,500 is levied by the government.
Permit holders may also engage in economic activity in Malta.
Application for special tax status under the HNWI Regulations may be made to the Commissioner of Taxes through a person who qualifies as an authorized registered agent, registered as such with the Commissioner of Taxes under the laws for HNWIs.
EXEMPTION FROM DOUBLE TAXATION
Residents of Malta are granted protection by double taxation agreements, which ensure that tax is never paid twice on the same income in different countries. Malta has an extensive network of double taxation treaties and where there is no double taxation treaty, another form of double taxation under domestic law, namely a unilateral exemption, largely achieves the same result.
In order to be attractive to individuals with a high intensity of skills, assets and income, through specific programs aimed at Expatriates (EXPAT) and High Net Worth Individuals (HNWIs)
these are the programs that are now also available to non-European citizens, following regulatory changes subsequently made, such as the Retirement Program, now valid for any nationality
Any person interested in applying to this program is required to do so through an approved registered agent or accredited person
MALTAway Partners are Authorised Registered Mandatories of MALTA Inland Revenue/MFSA.
Individuals who are authorized to participate in this program, who are not of Maltese origin, and who intend to remain in Malta for a substantial period of time but do not intend to settle permanently in Malta, will be classified as resident but not domiciled in Malta (NON-DOM).
Such individuals will be taxed on income earned in Malta. They will not be taxed on non-Maltese income not remitted to Malta. Capital gains will not be taxed even if remitted to Malta.
For any further information please do not hesitate to contact us
either for more detailed information on the Residency, Citizenship and Visa Program of Malta and other jurisdictions and to advise you on the best real estate solutions in Malta and Gozo and on a Qualifying Investment in Malta and many other jurisdictionsCONTACT MALTAWAY