Legal Notice 167 of 2013 introduced the Global Residence Programme Rules, offering wealthy Third Country nationals the opportunity to optimise their tax and residential status.
This allows a very generous 15 % personal tax rate for any income received in Malta from overseas whilst also freedom of movement throughout the Schengen Area.
There are a number of criteria one must satisfy to qualify for such as programme;
Residence i) There is no minimum stay on the island. ii) A beneficiary must not stay in any other country for more than 183 days in a full year to avoid being taxable elsewhere. iii) A beneficiary is an individual who is not (and does not become) a long-term resident in Malta and is advised not to spend more than 9 months a year in Malta, to avoid falling foul of the GRP rules. iv) Once granted one receives a Residence permit.
Property i) One must purchase a property of over € 275,000 or in Gozo or the South of Malta €220,000; or ii) Rent a property that is the equivalent of over 9600 euros annually or 8750 e in the South or in Gozo. Only the beneficiary and his/her family members may reside in the Qualifying Property Holding; (an individual with whom the beneficiary is in a stable and durable relationship may also be eligible)
Language Applicants must be fluent in English or Maltese.
Self-Sufficiency Applicants must be and remain in receipt of stable and regular resources which are sufficient to maintain oneself and his/her dependants without recourse to the social assistance system in Malta.
There are two options:
Tax Plan A beneficiary and his/her designated dependants are entitled to a: i) 15% tax rate on all income arising outside of Malta and remitted to Malta. ii) 35% tax rate on any other income, which does not fall within the scope of the Rules.
Tax Commitment A minimum tax payment of €15,000, on income arising outside of Malta and remitted to Malta, which must be payable yearly in advance. The beneficiary retains the right to claim relief from double taxation
Application Applications must be made though an official entity entitled to submut such applications. The applicant must pay a non-refundable application fee of: €6,000 – if the qualifying property is in Malta €5,500 – if the qualifying property is in the south of Malta or Gozo