Malta Global Residence Programme
The Maltese Global Residence Programme 2013 grants Schengen residence rights and a remittance based tax system at a flat 15% tax rate.
The Maltese Government has recently launched the latest residence scheme by the name Malta Global Residence Programme that opens up the doors to relocation by non-EU, non-EEA and non-Swiss nationals satisfying the revised minimum investment or rental thresholds and enjoying a lower minimum tax requirement.
Benefits of the Malta Global Residence Programme
Global residence permit holders enjoy a flat rate of personal income tax of 15%, chargeable only on a remittance basis. Foreign source income received in Malta is subject to Malta tax only if remitted to Malta while foreign capital gains are altogether outside the scope of tax in Malta. Local source income arising from business, investment or other economic activity held in Malta is subject to tax at 35%. Minimum tax under the present HNWI Rules has been reduced from €25,000 for the applicant (plus an additional €5,000 per dependent) to a minimum tax of €15,000 under the Global Residence Programme, covering all dependents. Unlike the HNWI Scheme, the GRP will no longer require a Bond.
Malta is a full signatory of the Schengen Area Treaty which it has signed back in 2007 and subsequently fully implemented, resulting in Malta integrating with all Schengen states in a visa-free movement zone.
Malta Global Residence Requirements
Property Requirements: Applicants to a global residence programme are required to show that they have purchased a property in Malta for at least Euro 275,000, reduced to Euro 220,000 for properties situated in the Southern Region of Malta and in Gozo. Applicants opting for the rental alternative must enter into a rental contract for a minimum of Euro9,600, reduced to Euro 8,750 for properties situated in the Southern Region of Malta and in Gozo. The Global Residence Programme maintains the difference in market realities already addressed by the Malta Retirement Programme in that there shall be different minimum parameters for Malta and Gozo. The southern of Malta, like Gozo, will require different parameters to attain the benefits of the Programme. The immovable property acquired or rented in satisfaction of the requirements of the Malta Global Residence Programme and which the applicant has declared as his residence in Malta may not be used by any other person other than dependents or those in his employ. Therefore subletting of the property declared as one's residence on the residence application is not allowed for whatever period and in whichever location.
Medical Insurance: In granting a Global Residence Permit as well as Uniform Residence Permits, the authorities will verify that the applicant and dependents are covered by an all-risks medical insurance in Malta.
Eligibility for Global Residence
The definition of dependents has been widened beyond wife and children. The age limitation of children(natural, adopted or in care) has been increased to 25. Dependents now includes brothers, sisters and direct relatives in an ascending line as long as it is shown to the satisfaction of the Director of Inland Revenue that these are dependents of the beneficiary of the Residence Programme. Employees are also provided for including carers, butlers, personal drivers and other domestic staff in the employ of the applicant for the preceding two years.
Applying for a Global Residence Permit
The Malta Global Residence Programme also requires applications to be submitted on their behalf via Authorised Registered Mandatories in Malta. Authorised Mandataries are obliged to comply with marketing guidelines in respect of the programme. The registered mandatory may appear on behalf of an applicant during the application process and also on applying for and collecting the Uniform Residence Permit. The application fee is €4000 at application stage. From the date that the person actually takes up residence in Malta, a further amount of €2000 shall be payable. Persons who take up residence in Gozo or in the South of Malta can benefit from a reduction of €500 from the latter €2000.
Renewing a Malta Global Residence Permit
The renewal of the Uniform Residence Permit shall be conditional to the applicant and dependents satisfying the minimum conditions for the preceding year but also for the forthcoming period for which the Uniform Residence Permit is given. This includes the payment of the minimum tax and a declaration that the applicant has not been resident for more than 183 days in any other single jurisdiction.
Present holders of the HNWI Rules are given the opportunity to be convert into the new Global Residence Programme to enjoy less onerous conditions.
Cited Sources re. Malta Global Residence Programme
Malta Global Residence Programme
Global Residence Programme 2013