Global Residence Program Launched
The 2013 Global Residence Program Rules have been finally published. Conversely as what has been expected however, these Rules are only applicable to non-Maltese, non-EEA and non-Swiss nationals.
The established thresholds in respect of value of immovable property bought in Malta is of a minimum of €275,000, however, when the property is in the south of Malta or in Gozo, the minimum value can be of €220,000. The rent threshold is of €9,600 for leases in Malta and €8,750 in Gozo or the south of Malta. The localities included within the definition of the south of Malta are the following: Birzebbugia, Cospicua, Fgura, Ghaxaq, Gudja, Kalkara, Kirkop, Luqa, Marsascala, Marsaxlokk, Mqabba, Paola, Qrendi, Safi, Santa Lucija, Senglea, Siggiewi, Tarxien, Vittoriosa, Xghajra, Zabbar, Zejtun and Zurrieq.
The Rules establish that on income arising outside of Malta but brought into Malta, the minimum tax payable is €15,000, with further income arising outside of Malta but brought into Malta to be taxed at a flat rate of 15%. The minimum tax payable, must be paid yearly in advance and any other income (which does not fall within the scope of the Rules) will be taxed at the rate of 35%.
In order to avail from the Rules the beneficiary must:
- hold a qualifying property holding;
- be in receipt of stable and regular resources which are sufficient to maintain oneself and his/her dependants without recourse to the social assistance system in Malta;
- be in possession of a valid travel document;
- be in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals for oneself and his/her dependents;
- be fluent in one of the official languages of Malta;
- be a fit and proper person; and
- not benefit from any other special tax status.
Applications for the GRP Rules must be applied for, through an Authorised Registered Mandatory and the non-refundable application fee is of €6,000 Euro, and €5,500 if the qualifying property is in the south of Malta.
The GRP Rules state that the beneficiary must continuously satisfy the obligations in terms of the Rules and also that the special tax status may be inherited. GRP Group is a registered Authorised Registered Mandatory.