On the 15th of September 2011, Malta’s Finance Minister announced the much awaited High Net Worth Individuals Schemes regulating the issue of Malta residence permits to EU and non-EU nationals. Persons eligible under this scheme will be subject to Malta tax at a flat rate of 15% on a remittance basis, that is, only on foreign source income if remitted to Malta.
This scheme replaces the former Malta Residents Scheme Regulations. Malta's new HNWI tax residence scheme addresses two categories of applicants, namely nationals of:
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the European Union (EU), the European Economic Area (EEA) and Switzerland, and
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third countries.
Malta High Net Worth Tax Residence Schemes
The following is a summary of the applicable requirements for the Malta High Net Worth Residence Schemes:
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Requirements
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EU/EEA/Swiss Nationals
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Non-EU, Non-EEA, Non-Swiss Nationals
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Financial Background
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Stable & regular income
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Stable & regular income
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Property Purchase; or
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Minimum of EUR 400,000
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Minimum of EUR 400,000
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Property Rental
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Minimum of EUR 20,000
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Minimum of EUR 20,000
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Property Subletting / Sharing
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Not allowed |
Not allowed |
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Tax Rate
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15% Foreign source income remitted income to Malta
35% Malta source income
0% Foreign source income not remitted to Malta. |
15% Foreign source income remitted income to Malta
35% Malta source income
0% Foreign source income not remitted to Malta. |
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Annual Minimum Tax Payment
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Main Applicant : EUR 20,000 Dependant : EUR 2,500
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Main Applicant : EUR 25,000 Dependant : EUR 5,000
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Health Insurance
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Required
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Required
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Malta domicile allowed
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No |
No |
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Local Business / Employment
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Allowed |
Allowed |
Existing Malta Permanent Residents
Malta Permanent Residence Permit holders under the former Permanent Residence Scheme will continue enjoying their former status. However, those who sell the property to which their permit refers or terminates their existing lease must acquire a Qualifying Property Holding or lease according to the thresholds of the new HNWI Residence Scheme.
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