Malta Residence Permit
Ordinary Residence in Malta
An EU citizen, under the basis of the freedom of movement principles, is entitled to move freely within the European Union, including Malta. Any EU person residing in Malta for a period exceeding three (3) months should apply for a residence permit with the Department for Citizenship and Expatriate Affairs. Such person holding a residence permit would be considered to be tax resident in Malta and liable to tax in Malta. An EU citizen holding a residence permit for a period exceeding five (5) years (non-continuous) is eligible to acquire permanent residence status in Malta.
Residence by Investment
Non-EU business persons desirous to establish a business in Malta are able to acquire residence permits in provided that the applicant makes an investment of one hundred thousand (€100,000) in a company in Malta, must demonstrate that he/she is highly skilled and presents a sound business plan to Malta Enterprise. Following approval, the applicant in entitled to residence in Malta.
Malta Residence Programme
The Ordinary Residents Scheme is an incentive offered to EU residents to transfer their tax residence to Malta. The scheme is available to persons who have adequate financial means and live in suitable property. Ordinary residents may also take up gainful employment or set up a business activity in Malta.
An applicant under this scheme must purchase property in Malta for not less than €220,000 if purchased in Gozo or in the Southern region of Malta and a minimum of €275,000 if purchased anywhere else in Malta. Or otherwise demonstrate that he/she lives in rented property of which the minimum rental is €8,750 per annum if rented in Gozo or in the Southern region of Malta and a minimum of €9,600 per annum if rented anywhere else in Malta.
Tax in Malta is charged on a remittance basis meaning that an ordinary resident is charged tax on foreign source income that is brought to Malta and on local source income. Applicants under this scheme are eligible to apply for residency in Malta and can apply to pay 15% tax on all foreign sourced income which is remitted to Malta, subject to a minimum tax liability in Malta of €15,000. Income arising in Malta will be taxed at normal rates.
Statutory application fees under this scheme are of €6,000 except where the qualifying owned property is situated in the South of Malta, in which case the administrative fee is reduced to €5,500.
An applicant under this scheme must purchase property in Malta for not less than €220,000 if purchased in Gozo or in the Southern region of Malta and a minimum of €275,000 if purchased anywhere else in Malta. Or otherwise demonstrate that he/she lives in rented property of which the minimum rental is €8,750 per annum if rented in Gozo or in the Southern region of Malta and a minimum of €9,600 per annum if rented anywhere else in Malta.
Tax in Malta is charged on a remittance basis meaning that an ordinary resident is charged tax on foreign source income that is brought to Malta and on local source income. Applicants under this scheme are eligible to apply for residency in Malta and can apply to pay 15% tax on all foreign sourced income which is remitted to Malta, subject to a minimum tax liability in Malta of €15,000. Income arising in Malta will be taxed at normal rates.
Statutory application fees under this scheme are of €6,000 except where the qualifying owned property is situated in the South of Malta, in which case the administrative fee is reduced to €5,500.
The Global Residence Programme (Malta) (GRP)
This scheme allows non-EU nationals to obtain a residence permit in Malta and benefit from considerably advantageous tax rates.
In fact, under this scheme, residents are subject to a flat tax rate of 15% on foreign sourced income received in Malta, subject to a minimum tax liability in Malta of €15,000 per family. Residents under this scheme will not be taxed on a worldwide basis but only on income remitted to Malta. They will therefore not be taxed on foreign source income that is not remitted to Malta or foreign source capital gains (even if such capital gain is remitted to Malta).
A number of criteria must be met for an individual to be able to benefit from this scheme. The applicant must demonstrate that they do not live in any other country for a period exceeding 183 days that may entitle the foreign jurisdiction to tax the applicant on a residence basis. Another principal requirement is that the applicant is to either purchase or rent property in Malta in accordance with the applicable thresholds. The properties purchased must have a minimum value of €275,000 or €220,000 in the case of property purchased in the South of Malta or in Gozo. The rental minimum threshold is €9,600 per annum or €8,750 per annum in the case of property situated in the South of Malta or Gozo.
For more information about Moving to Malta please contact us on info@virtusmalta.com or via filling in the form in the Contact Us page.
In fact, under this scheme, residents are subject to a flat tax rate of 15% on foreign sourced income received in Malta, subject to a minimum tax liability in Malta of €15,000 per family. Residents under this scheme will not be taxed on a worldwide basis but only on income remitted to Malta. They will therefore not be taxed on foreign source income that is not remitted to Malta or foreign source capital gains (even if such capital gain is remitted to Malta).
A number of criteria must be met for an individual to be able to benefit from this scheme. The applicant must demonstrate that they do not live in any other country for a period exceeding 183 days that may entitle the foreign jurisdiction to tax the applicant on a residence basis. Another principal requirement is that the applicant is to either purchase or rent property in Malta in accordance with the applicable thresholds. The properties purchased must have a minimum value of €275,000 or €220,000 in the case of property purchased in the South of Malta or in Gozo. The rental minimum threshold is €9,600 per annum or €8,750 per annum in the case of property situated in the South of Malta or Gozo.
For more information about Moving to Malta please contact us on info@virtusmalta.com or via filling in the form in the Contact Us page.
