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I am sure you all enjoyed reading about the benefits of being an expat in Malta in our latest blog post.

As promised, this write-up will take you through all the residence schemes that are available in Malta, and provide an analysis of which one would suit you the most.

The Schemes

There are 5 major schemes that are of interest to expats:

  1. Ordinary Residence
  2. The Residence Programme
  3. The Global Residence Programme
  4. The Highly Qualified Persons Residence Scheme
  5. The Retirement Scheme

Do you reside in Malta throughout the year?

If you reside in Malta for at least 183 days in a year, the Ordinary Residence scheme applies to you. In addition to this, your presence in Malta must be a part of your regular order of life.

In this kind of residence, you will only be required to pay the progressive rates applicable to Malta.

Furthermore, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta.

Are you an EU/EEA/Swiss National?

Relocating to Malta has never been easier thanks to the Residence Programme which offers foreign nationals a flat tax rate of 15% if they purchase or rent property in Malta.

Like the Ordinary Residence scheme, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta.

What is the minimum value of real-estate in Malta in this scheme?

The minimum value of property is €275,000 if acquired in the North of Malta, and €220,000 if acquired in Gozo or the South of Malta. The property can also be rented , in which case the minimum lease would be €9,600 per annum if the property is leased in the North of Malta, and €8,750 per annum of leased in Gozo or the South of Malta.

Are you a non-EU/EEA/Swiss National?

If yes, a good scheme you might want to consider is the Global Residence Programme.

This scheme is similar to the Residence Programme (mentioned above) in all aspects, with a slight change in real-estate pricing (as the minimum value of property in Gozo is €250,000 whilst in the South of Malta it is €225,000)

The most attractive feature of this programme for non-EU nationals is certainly the opportunity of visa free travel throughout the Schengen zone.

Do you occupy or intend to occupy a senior position in Malta?

And will this position be within the local financial, gaming, innovation or aviation sector?

The Highly Qualified Persons Scheme (HQP) might be the most ideal for you.

A major benefit that comes with this scheme is that whilst the income derived from the eligible office would be taxable at a flat rate of 15%; any income in excess of €5 million from this office would not be taxable in Malta.

Thinking of retiring?

With 300 days of sunshine, and the relatively tranquil life that Malta offers, the island has increased its popularity as a retirement location.

Pensioners can benefit from the Malta Retirement Programme which was designed to attract nationals of the EU, EEA and Switzerland, offering a 15% tax rate for individuals.

Do you want to be a citizen of Malta?

All the aforementioned residence schemes can be combined with The Malta Individual Investor Programme (IIP), which was launched last autumn by the Government of Malta, and which provides for the acquisition of citizenship of Malta through the grant of a certificate of naturilisation to foreign individuals and their families.

In order to acquire this citizenship, the applicant must contribute to the economic development of Malta through:

  • A €650,000 contribution for himself and an additional €25,000 for each dependent, mainly the spouse and dependents aged under 18. On the other hand, non-spouse dependents aged over 18 need to contribute an additional €50,000 each;
  • Acquisition of property valued at least €350,000, or a minimum property rental of not less than €16,000 per annum;
  • Investment of at least €150,000 in Government approved financial instruments to be kept for at least 5 years.

Furthermore, the Malta IIP programme requires the applicant to reside in Malta for a period of at least 12 months.

Want to know more?

For more information regarding the schemes mentioned above please follow this link.

Have you enjoyed this blog post? If yes, you can leave your feedback or send me an email on lcaruana@ksimalta.com.

You are also welcome to register to KSi Malta’s blog posts here.

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