Residency
Malta offers various Residency Programmes whether you are a non-EU National or EU National
Non-EU Nationals:
EU Nationals:
MALTA RESIDENCE AND VISA PROGRAMME (MRVP)
RESIDENCY
IN MALTA
FROM 270K EUROS + INVESTMENT
FULL FAMILY
VISA-FREE TRAVEL
WITHIN SCHENGEN AREA
This program, also known as the Malta Golden Visa, leads to residency, but has no recurring minimum tax – which makes this program preferable especially for long-term residents, non-EU Nationals and retirees. The MRVP program requires a property purchase of no less than €270,000 EUR (or a property lease at no less than €10,000 per year for five years). The program further requires a non-refundable one-time cash contribution of €30,000 and an investment of €250,000 in government bonds to be held for a minimum of five years. This program leads to residency in as little as three months from application start, but it does not lead to the Maltese (EU) citizenship and passport.
GLOBAL RESIDENCE PROGRAMME (GRP)
RESIDENCY
IN MALTA
FROM 220K EUROS + COSTS
FULL FAMILY
VISA-FREE TRAVEL
WITHIN SCHENGEN AREA
The Global Residence Programme is available to non-EU nationals, who are interested in taking up residence in Malta, while enjoying a favourable tax. Permit holders are also able to work or set up a business in Malta once they have applied for and have obtained the necessary permits.
The Programme Grants:
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Tax residency Status in Malta with a flat rate of 15% tax on foreign source income remitted to Malta;
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Possibility of Double Taxation Relief;
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Possibility, under certain conditions, to pass on the special tax status to one’s heirs;
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A Maltese Residence Permit (allow permitting visa free travel to Schengen area countries for up to 90 days per visit) following an additional application.
There is no obligation for long-term residency in Malta.
THE RESIDENCE PROGRAMME (TRP)
RESIDENCY
IN MALTA
FROM 220K EUROS
NO INVESTMENT NEEDED
FULL FAMILY
The TRP is tailored for expatriates who are nationals of the EU, EEA or Switzerland and who are not permanent residents of Malta, Third Country Nationals or Maltese nationals/citizens and must not be currently benefiting from any other special tax status in Malta. This scheme may appeal to expatriates seeking an alternative residential base in a warm Mediterranean Island in the European Union.
MALTA RETIREMENT PROGRAMME (MRP)
RESIDENCY
IN MALTA
FROM 220K EUROS
NO INVESTMENT NEEDED
FULL FAMILY
The Malta Retirement Programme (MRP) is a programme designed to attract nationals of the EU, EEA and Switzerland who are not in an employment relationship and are in receipt of a pension as their regular source of income. Individuals benefitting from this Programme may hold a non-executive post on the board of a company resident in Malta. This implies that the beneficiary would be prohibited from being employed by the company in any capacity.
USEFUL INFORMATION
Double Taxation Relief
Malta residents are afforded protection by double taxation agreements, which ensure that tax is never paid twice on the same income in different countries. Malta has an extensive network of double taxation treaties and where there is no double taxation treaty, another form of relief from double taxation available under domestic law, namely unilateral relief, largely achieves the same outcome.
Inheritance Tax
No death tax or duty is payable in Malta. However, duty on documents and transfers is payable by the heirs of the deceased or the purchaser on real estate situated in Malta, and upon the purchase of shares in Malta companies. However, no such duty is payable on share transfers effected by shareholders in or by trading companies which have business interests to the extent of more than ninety per cent outside Malta. Likewise, an exemption from duty on share transfers in holding companies exists where more than half of the ordinary share capital, voting rights and rights to profits are held by persons who are not resident in Malta. Subject to certain exceptions, duty is due at the rate of 5% in the case of real estate, and 2% in the case of shares.
Schengen Zone (Uniform Residence Permit)
Malta became part of the Schengen Zone in 2007. Non-EU citizens may obtain the Uniform Residence Permit, issued on the basis of one being a permanent resident. In this case, it grants its holder the possibility to travel throughout the Schengen Zone without the requirement of a visa for at least three months. In order to apply for the Uniform Residency Permit, the applicant must have a place of residence in Malta.
Taxation
For tax purposes an individual is normally regarded as being resident in Malta for a particular year if, in that year, his stay in Malta exceeds 183 days. As already noted, however, foreigners residing in Malta are not taxed on their worldwide income, but only on Maltese source income and capital gains and on foreign source income remitted to Malta. Foreign source capital gains are not taxed even if remitted to Malta. The applicable income tax rates are, however, the normal rates of income tax applicable to residents.
