Why Malta Residency?

Posted by Josephine Martin on April 17th, 2018

Malta, that beautiful island in the Mediterranean blessed with crystal clear waters and long sunny days is not only using its natural resources to attract people to take up Malta residency but also offers a variety of residency programmes which offers financial, lifestyle and taxation incentives for people that settle in Malta. Here we outline some of the more interesting programmes on offer.

Malta Retirement Programme

This is available for EU/EEA and Swiss nationals and can include their spouse, minor children, and dependent adult children. It gives the successful applicant a special tax status which allows for all foreign pension income received in Malta to be taxed at a maximum of 15%. Any income not remitted to Malta is not taxed in Malta. There is a property requirement which can be rented or purchased in Malta. There are also other general conditions to be met such as having a valid travel document, valid health insurance, being a fit and proper person and not being employed.

Highly Qualified Person Rules

As an incentive to attract persons to work in the investment, gaming and aviation industries where the island has a limited number of qualified persons with experience, Malta affords a special tax status on qualifying persons. The successful applicant will pay a 15% flat rate of tax on any income derived from the qualifying contract of employment subject to a minimum level of income set at approximately €82,000 per annum. This status is for a period of five years with a possibility of renewal and is available for all nationals. The successful applicant must be tax resident in Malta, have specific qualifications and experience, hold a certain qualifying position and must live in accommodation based in Malta.

Malta Residence and Visa Programme

Targeted at Non-EU/EEA and Swiss Nationals this programme allows for an indefinite permit to reside, settle and stay in Malta. It also affords the successful applicant visa-free travel within the Schengen Area. It has several conditions to be satisfied in order to be accepted on to the programme and these include €30,000 contribution for the main applicant and €5,000 for parents/grandparents, a property requirement and qualifying investment of €250,000 to be held for five years. The successful applicant must have an annual income of €100,000 or capital of €500,000.

Malta Citizenship by Investment

Whilst not affording a special tax status, Malta has been offering a citizenship by investment programme for a few years and is available for anyone over the age of 18 whom passes a strict due diligence test and satisfies a few conditions. Targeted at high net worth individuals and ultra-high net worth individuals it has a non-refundable €650,000 contribution to the National Development and Social Fund to be made and a €150,000 investment in local bonds. There is also a property requirement and when you factor in fees it equates to around €1 million in total but in return, you receive citizenship in Malta and thus freedom of movement within the European Union.

Source URL:

https://medium.com/@josephinemarti/why-malta-residency-98c6c8137f21

About The Author:

The author’ has an interest in traveling and has an interest in citizenship by investment programmes around the world. She has a particular interest in the Malta residency programmes and the special tax status if offers to applicants of the programme.