High Net Worth Individuals Rules and the Global Residence Programme Scheme.

15/07/2013

No further applications will be processed under the High Net Worth Individual (HNWI) rules for Non-EU/ Non-EEA/Non-Swiss nationals as from 1 July 2013.  Such individuals may apply under the Global Residence Programme Rules.  The terms and conditions imposed under this scheme are similar to the HNWI Rules however certain conditions imposed under the new Global Residence Programme rules are less onerous. 

 

Approved individuals under the new Global Residence Programme Rules are still subject to income tax at the rate of 15% on income remitted to Malta.

 

The main conditions to apply under this scheme are as follows:

 

  • The individual must buy immovable property in Malta for a consideration of not less than €275,000 (€220,000 if the property is situated in Gozo or the south of Malta).  The individual may opt to lease property however the annual lease payments must be at least €9,600 (€8,750 if the property is situated in Gozo or the south of Malta);
  • The individual must not be a long-term and/or Maltese/EEA/Swiss resident;
  • The individual must not benefit from any special rules in Malta;
  • The individual must be in receipt of stable and regular resources which are sufficient to maintain himself and his  dependants;
  • The individual must possess a valid travel document;
  • The individual must  possess a sickness insurance for himself and his  dependants;
  • The individual must be fluent in Maltese or English;
  • The individual must be a fit and proper person.
  • The individual’s stay is in the public interest of the country;
  • The individual must not stay in any other jurisdiction for a period exceeding 183 days in a calendar year.

 

Fees and annual minimum tax payment:

 

  • The non-refundable administrative fee for an individual to apply under this scheme is €6,000.  This fee is reduced to €5,500 if the property owned/leased is situated in Gozo or the south of Malta;
  • The minimum annual tax payment under this scheme is €15,000.    Such tax is payable by the 30th April of every year.
  • Any other income (other than income remitted to Malta) received by the individual or his  dependants is subject to tax at the rate of 35%.
  • An administrative fee of €5,000 is imposed on any individual who does not inform the Commissioner within four weeks that any of the conditions set out in the scheme are no longer satisfied.

 

An application under the Global Residence Programme must be made through the services of an ‘Authorised Mandatory’.   Avanzia Taxand is registered with the Inland Revenue Department as an ‘Authorised Mandatory’ and may assist you with the application process.

 

Valletta, Malta

Malta is an island hub at the very core of the Mediterranean that is fast becoming one of the world’s foremost emerging financial services centres. Valletta being the Capital City of Malta.

Rankings & Awards

Avanzia Taxand is consistently ranked as a Tier One or Tier Two Firm in Euromoney's Corporate Tax Handbook and ITR surveys on tax planning and tax transactional surveys.

Avanzia Taxand was named ‘Malta Tax Firm of the Year’ by the International Tax Review for three times – in 2009, 2013 and 2016.  In 2011, 2014, 2015 and 2016 it was named ‘Malta Tax Firm of the Year’ by Corporate International.

 

Our Budget Newsletter 2018

Posted on: 10/10/2017

Our Budget Newsletter 2017

Posted on: 18/10/2016

Our Budget Newsletter 2016

Posted on: 13/10/2015

Our Budget Newsletter 2015

Posted on: 19/11/2014

Tel: +356 2730 0045
Fax: +356 2730 0049
Email: info@avanzia.com.mt