Malta Global Residence Programme

As of the 1st of July the Global Residence Programme has been put into force. This new programme welcomes Non-European Individuals to apply for residency in Malta and benefit from Special Tax Status under some defined regulations.

Summary

This page has been compiled by RE/MAX Malta Real Estate agents to provide a detailed reference of the new Global Residence Programme and a brief guideline as to the other benefits that arise when purchasing or letting real estate in Malta. It is the objective of the Maltese Government to attract foreign investment into Malta where as part of the eligibilty factors is that an Individual is obliged to purchase or rent a property in Malta. The property of choice will then become known as the main residence of that individual from where he/she will become taxable from a favourable tax rate of 15% of their income generated from outside of the country. The transaction of purchasing real estate in Malta is not only a safe investment in terms of capital appreciation, the actual process is regulated and written contracts are in the English language but also may be thereafter translated into one of the official European Languages. The rental process is also quite straight forward whereby contracts are legally binded and consumer rights are protected according to European Law. As the leaders in the real estate market in Malta it is our endeavour to ensure that our clients are serviced professionally and that you are guided throughout the process from your arrival in Malta up until the transaction is complete and beyond.

In order to be eligible for the Global Residence Programme, there are a number of other criteria that the beneficiary must satisfy to be accepted. Please find hereunder a detailed description taken from the recent changes in the Income Tax Act that have been made to provide for the Global Residence Programme:

This Residence Programme may be particularly interesting for Asian, South African and individual reigning from the Americas. It is said that the Maltese Government will be revising other schemes that will be favourable for European/SWISS/ and EAA Nationals.

According to Legal Notice 167 of 2013 and included in the Income Tax Act (CAP. 123) the following are the Global Residence Programme Rules, 2013:

• An Individual must apply for Global Residence status through an Authorised Mandatory, who is a person who is in possession of a warrant to practice as an Advocate under the Code of Organization and Civil Procedure, a person who has been appointed Notary Public, an Accountant, a member of the Institute of Financial Practitioners, Malta Institute of Taxation, Malta Institute of Accountants and the Institute of Management;
• An Individual must not be a beneficiary under the Resident Scheme Regulations, Malta Retirement Programme rules, the High Net Worth Individuals – Non-EU/EAA/Swiss National Rules, the Qualifying Employment in Innovation and Creativity Rules or the Highly Qualified Persons Rules. Transitory provisions have also been published for this Scheme;
• An Individual must not reside with a beneficiary of any of the above mentioned schemes in article 2;
• An Individual may apply to the Commissioner for special tax status under the Global Residence Programme by paying a non-refundable administrative fee of six thousand euro (€6000) in case the applicant will reside in Malta and five thousand and five hundred euro (€5500) in case the applicant intends to reside in Gozo or in the South of Malta (South locations mentioned below);
• An Individual must reside in a “Qualifying owned property” or a “Qualifying rented property”:
  • A “Qualifying owned property” is a property that is not less in value than €275, 000 if located in Malta or in the case where the applicant will reside in Gozo or in the South of Malta the property must not be less in value than €220,000;
  • A “Qualifying rented property” is a property that is rented for no less than €9, 600 per annum if located in Malta whereas if the property will be located in Gozo or in the South of Malta the rental price must not be less than €8, 750 per annum;
• Other determining criteria are the following:
  • Individual must be in receipt of stable and regular resources which are sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta.
  • Individual must be in possession of a valid travel document;
  • Individual must be in possession of sickness insurance in respect of all risks across the whole of European Union normally covered for Maltese Nationals for himself and his dependents.
  • Individual must be fluent in one of the official languages of Malta and
  • Individual must be fit and proper person.

Tax Benefit

The individual that is accepted by the Commissioner of Inland revenue as fit for the Global Residence Programme will be taxes by 15% on any income arising outside Malta in the year immediately preceding the year of assessment which is received in Malta by the beneficiary, the beneficiary’s spouse and children with the possibility to claim relief of double taxation under article 74(a) and (b) of the Taxation Act. The minimum amount of tax payable shall be € 15, 000 for any year of assessment.