Malta launches new HNWI Tax Residence Schemes

Dr. Priscilla Mifsud Parker | 16 Sep 2011

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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:

  1. the European Union (EU), the European Economic Area (EEA) and Switzerland, and
  2. 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:

            Requirements
EU/EEA/Swiss Nationals
Non-EU, Non-EEA, Non-Swiss Nationals
  1. Financial Background
Stable & regular income
Stable & regular income
  1. Property Purchase; or
Minimum of EUR 400,000
Minimum of EUR 400,000
Property Rental
Minimum of EUR 20,000
Minimum of EUR 20,000
Property Subletting / Sharing
Not allowed Not allowed
  1. Tax Rate
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.
  1. Annual Minimum Tax Payment
Main Applicant : EUR 20,000 Dependant : EUR 2,500
Main Applicant : EUR 25,000 Dependant : EUR 5,000
  1. Health Insurance
Required
Required
  1. Malta domicile allowed
No No
  1. Local Business / Employment
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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