Residence in Malta
Malta is not only a reputable location for businesses, it is also rated as one of the world`s best destinations to live in. The central location in the Mediterranean with excellent climate , a stable economy, good healthcare and education, safe environment and friendly mainly English speaking inhabitants have attracted already quite a number of expatriates. Our services include valuable advice and sourcing on the purchase of property, schools, locations, transport and advice on the individually most beneficial residence scheme applicable on the client and its processing and implementation.
There are mainly 3 different schemes up to citizenship currently available for EU/EEA, Swiss, Norwegian, Liechtenstein and Iceland Nationals. Other nationals are approved also, but under discretion of the authorities. There are also specialized schemes available for High Net Worth Individuals (HNWI) from certain desired sectors. Currently some of the mentioned programs are about to have some changes, which will be amended here as soon as they are published.
Malta Ordinary Residence
Residents under the ordinary residency scheme and who are not domiciled in Malta are taxed on a remittance basis. Therefore they are not taxable on foreign source income not received in Malta and also not taxable on any capital gains arising outside Malta, whether remitted or otherwise. A resident permit holder can live physically in Malta and can also open a business locally or take up employment.
Applicants have to demonstrate financial independence, valid healthcare insurance and evidence of their local address either rented or purchased property.
|Current tax rates for singles (€)||current tax rates for married taxpayers (€)|
|Chargeable income||tax rate||deduct||chargeable income||tax rate||deduct|
|0 to 8.500||0||0||0 to 11.900||0||0|
|8.501 to 14.500||15%||1.275||11.901 to 21.200||15%||1.785|
|14.501 to 60.000||25%||1.275||21.201 to 60.000||25%||3.905|
|60.001 and over||35%||4.675.||60.001 & over||35%||6.775|
|Holders of ordinary residence permits are allowed to convert their status to another available residence scheme.|
Malta Global Residence Scheme
The aim of the Malta Global Residence Program is to formally recognize as a tax resident for Maltese tax purposes those foreign nationals who satisfy the eligibility criteria of this scheme. The economically self sufficient candidate has to maintain a permanent address in Malta or Gozo, either purchased or rented, certain minimum requirements are applicable. Maltese residents under the Malta Global residency scheme are taxed on a remittance basis. Therefore they are not taxable on foreign source income not received in Malta and also not taxable on any capital gains arising outside Malta, whether remitted or otherwise. Permanent residents of Malta are entitled for a flat rate of 15% on remitted income. With double taxation agreements ratified in over 60 countries, tax is never paid twice on the same income. Pensions can be paid to Malta free of tax at source with a flat rate of 15% locally. Overseas capital funds invested locally are only taxed on any interest or dividends generated hereon, also with a 15% flat rate.
Enclosed a summary of the current requirements and benefits of the Malta Global Residence Scheme
|Maximum residence in other countries||less than 183 days yearly|
|Employment, Business, Office in Malta||allowed|
|Maltese domicile||not allowed|
|Health insurance coverage||required for all family members|
|Main applicant spouse included||yes|
|Dependants||yes, under 25 years|
|Non family members||discretionary|
|minimum purchase of property required||Malta, 275.000.- / Gozo or Malta South 220.000.- €|
|Or minimum annual rental of premises||Malta, 9.600.- € / Gozo or Malta South 8750.-€|
|Minimum tax (per family)||15.000.- €|
|Basis of taxation||local source, remittance|
Tax rate for foreign source income
remitted to Malta
Tax rate for local personal, business
or investment income
|Tax rate for capital gains outside Malta||0%|
Malta Citizenship by Investment
Malta has been a member of the EU since 2004 and is part of Schengen since 2007. Citizenship obtained under this program grants the rights of full European citizenship for life and can be passed on to the future generations by descent. With Maltese citizenship one has access to all investment opportunities in Malta and Europe, which are available for all EU- citizens. Malta`s Banks have been ranked under the top 5 soundest banks in the world. and beside Germany, Malta is currently the only EU Member state maintaining economic growth in the Euro Zone.
The Malta Citizenship by Investment Program is the first EU approved citizenship program. ( Maltese Citizenship act, chapter 188, laws of Malta, amendment, LN 47 of 2014 )
There are a number of conditions under which citizenship can be granted under this scheme, such as a “Fit and Proper” test and a rigorous due diligence process by the government, to guarantee that only deserving and reputable applicants of good standing are allowed to proceed for the grant of Maltese citizenship.
Candidates have to demonstrate clean criminal records with checks, being conducted with the International Criminal Court, Interpol, and various other sources, and being able to show clean police conducts at all stages of the process. A health certificate is obligatory showing also the applicant is not suffering from a contagious disease.
Furthermore the applicant is required to contribute a minimum of 650.000.- to Malta. 70% of this contribution is going into a government fund run by trustees, the remaining 30% finance a consolidated fund, supporting education, public health, innovation, job creation and other social projects. The fund is on the same level as the Central Bank.
Spouses have to contribute another 25.000.- €, unmarried children between 18 and 25 years and dependent parents must contribute 50,000.- each.
Applicants are required to rent (at least for € 16.000.- yearly, 5 year contract) an adequate Maltese residence or purchase a local property for the minimum of € 350.000.-
An investment of at least € 150.000.- is to be made in bonds or shares and to be kept for 5 years minimum. The investment needs to be made in stocks sanctioned by the government as beneficial to the island.
Candidates have to show evidence of a genuine link with Malta and should have spend some time in Malta before citizenship is granted, ( usually 12 months after the effective date of the commitment to Malta )
Applications are to be made and processed wholly by Identity Malta, and need to be presented by an accredited and licensed Agent. The fees and services of these agents vary widely . .