The Malta Residence Programme Rules of 2014 create a special tax programme designed to attract foreign EU, EEA or Swiss nationals to take up residence in Malta.
For a person to be eligible to the Malta Residence Programme, one must own or rent property which the individual occupies as his principal place of residence worldwide. When purchasing a property, its value must be of at least €275,000 and of €220,000 when the property is in the south of Malta or in Gozo. When renting a property, the values are set at €9,600 per annum for immovable property in Malta and €8,750 per annum for immovable property in Gozo or the south of Malta. Here it is important to note that the qualifying property may not be let or sub-let.
An applicant is eligible to the Malta Residence Programme if applicant can show that he is economically self sufficient to maintain himself and his dependant without making use of the social assistance system in Malta. The applicant must be in possession of sickness insurance which covers himself and his dependants in respect of all risks across the whole of the EU normally covered for Maltese nationals. The health insurance cover must be procured by a company licensed in Malta or by an international reputable health insurance company. The applicant is to be a fit and proper person and must produce a police conduct certificate issued not earlier than six months prior to the the date of submission of the application, together with a swoen decleration taken before a Commissioner for Oaths in Malta confirming that the applicant is not subject to any ongoing civil or criminal proceedings.
Benefits for Malta Residence Programme applicants taking up residence in Malta under this new programme include a special and favourable tax treatment as follows:
- A flat rate of 15% tax on all income received in Malta arising from overseas
- No Malta tax chargeable on income arising outside Malta which is not received in Malta
- No Malta tax is chargeable on capital gains realised outside Malta even if these are received in Malta
Beneficiaries of special tax status granted in terms of The Residence Programme will need to pay a minimum tax of fifteen thousand euro (€15,000) annually. This minimum tax covers income of the beneficiary and his / her dependants mentioned below that arises outside Malta and is received in Malta and does not include income that arises in Malta.
Dependants who will be able to benefit from the rate of fifteen cents on every euro are:
- The beneficiary’s spouse;
- Minor children including minor children and children who are in the care and custody of the beneficiary or the beneficiary’s spouse;
- Children including adopted children and children who are in the care and custody of the beneficiary or the beneficiary’s spouse, who are not minors but who because of circumstances of illness or disability of a serious gravity, are unable to maintain themselves.
An application for special tax status under The Residence Programme may only be submitted to the Commissioner for Revenue through the services of an authorised registered manadatary (ARM). ACC is registered with the local tax authorities as an Authorised Registered Mandatory.