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Apart from its remarkable history, Subtropical–Mediterranean climate, sandy beaches and 300 days of sunshine; Malta attracts investment and new residents through a flexible taxation system which makes the island the ideal place for obtaining personal residence.

Malta has long recognised the need to have a defined fiscal residence in an EU member state. This led to a number of residence schemes being introduced:

 

 Ordinary ResidenceThe Residence ProgrammeThe Global Residence ProgrammeHighly Qualified Persons Scheme (HQP)Retirement SchemeMalta Residence and Visa Programme 
Type of ProgrammeTax ProgrammeTax ProgrammeTax ProgrammeTax ProgrammeTax ProgrammeNon-Tax Programme
Applicable to:EU/EEA/Swiss Nationals and also Non-EU/EEA/Swiss Nationals.EU/EEA/Swiss Nationals.Non-EU/EEA/Swiss Nationals.EU/EEA/Swiss Nationals and also Non-EU/EEA/Swiss Nationals, holding an eligible office in Malta (with an undertaking operating within the local Financial, Gaming/Innovation or Aviation sector).EU/EEA/Swiss Nationals. Non-EU/EEA/Swiss Nationals
When is Maltese tax incurred:Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta.Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta.Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta.Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta. Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta. Only incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta.  Hence, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable at all in Malta.
Applicable Maltese Tax Rates:Progressive ratesWhereas foreign sourced income which is received in Malta is subject to a flat tax rate of 15%, Malta sourced income and capital gains are taxable at a flat tax rate of 35%.Whereas foreign sourced income which is received in Malta is subject to a flat tax rate of 15%, Malta sourced income and capital gains are taxable at a flat tax rate of 35%.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 qualifying eligible office would not be taxable in Malta at all.Whereas foreign sourced income which is received in Malta is subject to a flat tax rate of 15%, Malta sourced income and capital gains are taxable at a flat tax rate of 35%. Progressive rates
Minimum Amount to be received in Malta:No minimum amount is stipulated.No minimum amount is stipulated.No minimum amount is stipulated.No minimum amount is stipulated.At least one full pension must be received in Malta and should account for at least 75% of the person’s chargeable income.  The stipulated minimum pension income is of €37,500 per annum. No minimum amount is stipulated
Minimum Income Tax to be paid in Malta:No minimum amount is stipulated.The minimum tax payable in respect of foreign income received in Malta is €15,000 covering the applicant and all his/her dependents.The minimum tax payable in respect of foreign income received in Malta is €15,000 covering the applicant and all his/her dependents.The minimum tax in respect of income derived from an eligible office is €11,250 per annum.The minimum tax payable in respect of foreign income received in Malta is €7,500 per annum. No minimum amount is stipulated
National Residence Obligations:This is only a taxation scheme, hence it will not automatically provide a person with a Maltese Residence Permit. Obtaining such Residence Permit involves separate procedures.This is only a taxation scheme, hence it will not automatically provide a person with a Maltese Residence Permit. Obtaining such Residence Permit involves separate procedures.This is only a taxation scheme, hence it will not automatically provide a person with a Maltese Residence Permit. Obtaining such Residence Permit involves separate procedures.This is only a taxation scheme, hence it will not automatically provide a person with a Maltese Residence Permit. Obtaining such Residence Permit involves separate procedures.This is only a taxation scheme, hence it will not automatically provide a person with a Maltese Residence Permit. Obtaining such Residence Permit involves separate procedures. Comprised within the programme
Substance Requirements:This scheme requires a person to reside in Malta for at least 183 days in a year.  In addition, presence in Malta must be part of a person’s regular order of life.This scheme requires a person not to reside for more than 183 days per annum in another sole jurisdiction, but no minimum requirement for residence in Malta is stipulated.This scheme requires a person not to reside for more than 183 days per annum in another sole jurisdiction, but no minimum requirement for residence in Malta is stipulated.This scheme requires a person to reside in Malta for the period outlined in the contract of employment of the eligible office.This scheme requires a person to reside in Malta for at least 90 days averaged over a five-year period and cannot reside for more than 183 days per annum in another sole jurisdiction. Not yet known – no minimum stay period is expected
Minimum value for Real-Estate in Malta:Not Applicable.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. Instead, 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 if leased in Gozo or in the South of Malta.The minimum value of property is €275,000 if acquired in the North of Malta, €250,000 if acquired in Gozo, and 225,000 in the South of Malta.  Instead, 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 if leased in Gozo or in the South of Malta.Not Applicable.The minimum value of property is €275,000 if acquired in the North of Malta and €220,000 if in the South of Malta or Gozo. Instead, 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 Malta, and €8,750 per annum if leased in the South of Malta or Gozo. The minimum value of property is €320,000 if acquired in the North of Malta, €270,000 if acquired in Gozo, and €225,000 in the South of Malta.  Instead, the property can also be rented, in which case the minimum lease would be €12,000 per annum if the property is leased in the North of Malta, and €10,000 per annum if leased in Gozo or in the South of Malta.
National Costs for Applying – Government fee:Nil.€6,000 if the property in question is in the North of Malta and €5,500 if the property in question is in the South of Malta or Gozo.  Applications must be submitted by an Authorised Registered Mandatory.€6,000 if the property in question is in the North of Malta and €5,500 if the property in question is in the South of Malta or Gozo.  Applications must be submitted by an Authorised Registered Mandatory.Nil.€2,500 with the application which must be submitted by an Authorised Registered Mandatory. €5,500 as application and €24,500 as contribution upon approval.  These must be submitted by an Authorised Registered Mandatory.

If you would like to know more about the personal residence opportunities in Malta and which scheme may be best for you, or to discuss any other fiscal matter, please get in touch with Bernard Gauci (bgauci@ksimalta.com) or Benjamin Griscti (bgriscti@ksimalta.com).

 

 

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