EU, EEA or Swiss nationals that are neither permanent Maltese nationals, nor third country nationals, are eligible to apply for residence in malta on the basis of this financial scheme.
Once approved the applicant and his dependants will be granted a ‘special status’ whereby income received outside Malta, but brought into Malta will be taxed at a flat rate of 15%.
An applicant shall be considered eligible to apply for special tax status under the programme, if he or she satisfies the following conditions:
- Applicant must own a property in Malta that exceeds the minimum value threshold of €275,000 (if the property is situated in south of Malta or Gozo the minimum threshold is reduced) or leases a property in Malta that exceed €9,600 p/a for a property in Malta (€8,750 p/a if in the south of Malta or in Gozo).
- The applicant must show receipt of regular resources that are sufficient to maintain him as well as his dependants without need to turn to Maltese social assistance
- Must show possession of valid travel document
- Must show possession of sickness insurance for himself and his dependants
- Must be able to communicate in one of Malta’s official languages (English or Maltese)
- Must be fit and proper individual – therefore an international due diligence will be carried out beforehand
- Applicant must be either an EU, EEA (Iceland, Norway, Liechtenstein) or Swiss national – but not a permanent Maltese national or third country national
- Applicant cannot be someone who benefits under Residence Scheme regulations, the High Net Worth Individuals Rules, the Malta Retirement Programme Rules, the Global Residence Programme Rules, the Qualifying Employment in Innovation and Creativity (Personal Tax) rules or the Highly Qualified Persons Rules.
Accepted applicants must comply with the following obligations on a yearly basis:
- Non-refundable administrative fee of €6,000 must be paid upon application (€5,500 if the qualifying property is situated in the south of Malta)
- Retention of the qualified property holding mentioned above;
- Retention of the health insurance and continuation of maintenance of stable resources;
- The applicant must not reside in any other jurisdiction for more than 183 days;
Special reporting obligations (the filing of an annual declaration together with the annual tax return) must be complied with.
- Any foreign sourced income which has been remitted to Malta shall be taxable at a fixed rate of 15%, with the possibility of claiming double tax relief on such income;
- A beneficiary and his spouse cannot opt for a separate tax computation;
- The individual must ensure that a minimum tax of €15,000 is paid every year.
The law specifies that all applicants are to authorise someone who is an authorised registered mandatory who will administer all applications, submissions and so on. This person must be registered with the Department of Inland Revenue and is either;
- An advocate;
- A legal procurator;
- An appointed notary public;
- An accountant;
- A member of the Institute of Financial Services Practitioners;
- A member of the Institute of Taxation;
- A member of the Malta Institute of Management