Malta offers various tax programmes that caters for the different needs of different types of individuals. There are currently 4 different schemes, and the common predetermining factor in all is the advantageous flat tax rate of 15% on foreign source income remitted to Malta.
(i) The Residency Programme applicable to EU, EEA and Swiss Nationals.
(ii) The Global Residency Programme applicable for all non EU, EEA and Swiss Nationals.
(iii) High Net Worth Individual Programme (HQP).
(iv) The Nomad Residency (NRP) New
(v) The Malta Retirement Programme.
The Residency Programme & The Global Residency Programme have similar conditions which apply. These are:
1. There is no front contribution or Investment required.
2. Application charges apply.
3. Applicants must prove that they have a steady and regular income.
4. Applicants have the choice between Renting or Purchasing a property in Malta which is subject to certain thresholds.
5. There is a 15% flat tax which will be charged annually on all income remitted to Malta.
6. Applicants must hold an European Health Insurance.
7. Applicants will not be allowed to domicile in Malta and can only spend 183 days per year in other countries. Local Business employment is allowed, but all non EU/EEA and Swiss nationals must obtain a work permit.
The High Net worth Programme aims to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by the relevant competent Authority in Malta, which are:
(i) Malta Financial Services Authority – MFSA
(ii) Malta Gaming Authority – MGA
(iii) Or with undertakings holding an air operators’ certificate issued by Transport Malta -TM
(i) The minimum annual salary must not be less than EUR 84,991.
(ii) There is no minimum property threshold, however if applicant chooses to rent a property, the lease agreement term cannot be less than one year.
(iii) Income is taxed at a flat rate of 15 % up to a maximum income of €5,000,000 with no tax payable on any excess income.
Due to the pandemic which revolutionized the working sector around the world, bringing many companies to adapt to the current situation and adopt the concept of remote working, the Maltese Government sought to take advantage of this growing trend and introduce a residency permit which enables applicants to reside and work remotely in Malta whilst retaining their employment overseas.
Although there are already some 1,000 digital nomads in Malta, most of whom are EU citizens, the Nomad Residency Permit (NRP), seeks to attract third country nationals to continue paying taxes in their country of employment abroad but would continue living and working remotely in Malta, highlighting the various advantages Malta has to offer namely; English speaking country with easy travel proximity to mainland Europe, the fact that the country is politically stable and safe with low crime rate, and a high standard quality of education and healthcare system.
Once issued, this residency permit will be valid for one year and can be renewed upon application online at the discretion of Residency Malta, subject that the applicant meets all criteria and conditions. Should the applicant eventually decide to relocate permanently to Malta, they would then need to apply for an appropriate VISA.
(i) The applicant must prove that he/she is a Third Country National who can work remotely in Malta.
(ii) Work for an employer registered abroad.
(iii) Conduct business activity for a company registered abroad, or shareholders of company registered abroad.
(iv) Offer consulting services to clients / companies with business operations established in a foreign country.
(i) Applicants will require a valid passport and proof that they are living in Malta. (Copy of residential contract, utility bill)
(ii) Must prove to be in receipt of a monthly minimum gross income of €2,700. Plus a further (20%) percent of the average wage for each added family dependant living with the main applicant.
(iii) Pass a due diligence process.
(iv) Be in possession of a health Insurance that can cover for any local health services needed.
(v) All income duly receivable from abroad is taxed abroad, but any income generated from work provided for local companies will be subject to Malta tax.
The Malta Retirement Programme was set up to attract EU/EEA and Swiss Nationals to remit their high net worth pensions to Malta and be granted a special tax status.
1. Potential Applicant must prove that he/she are beneficiaries of at least a pension equal to 75% of their Income.
2. Flat Tax rate of 15% on Pension remitted minimum threshold of €7,500 tax payable yearly for the main beneficiary plus €500 for each of his /her dependents.
3. Have the option to either rent or purchase a property in Malta.
4. Minimum investment of €275,000 on purchase of property in the north and central areas of Malta and €250,000 on purchase of property in Gozo or the south of Malta.
5. Applicants can either rent a property in Malta for €9,600 yearly rent or in Gozo for €8,750 yearly rent.
6. Applicants must reside in Malta for a minimum of 90 days over a 5 year period (on average) and not reside in any other jurisdiction for more than 183 days.
7. Applicants must hold an European Health Insurance cover.
Kindly contact us by email to learn more about Malta’s Tax Programmes and Residency Schemes and start your application process.
info@maltaluxuryhomes.com
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