Malta is a pretty small island in the heart of the Mediterranean, with a rich history and a great number of historic sites. Malta is a member of the European Union, the euro zone, and part of the Schengen area, thus people coming from countries who are also members do not need any entry Visa.
Malta is an ideal place to take up residence, as the country offers a range of benefits to individuals seeking to relocate on the island, given its advantageous tax regime and competitive cost of living. Malta offers an extensive number of tax incentives aimed at attracting foreign expatriates.
The Residence Programme Rules, 2014 (‘RPR’) were introduced by virtue of Legal Notice 270 of 2014 and came into force with effect from 1st July 2013. The RPR confer a special tax status to EU/EEA/Swiss nationals upon the satisfaction of the Commissioner for Revenue (‘the Commissioner’).
The RPR effectively replace the High Net Worth Individuals Rules applicable to EU/EEA/Swiss nationals Rules. Individuals who qualify under the RPR are taxable at the rate of 15% on foreign source income remitted to Malta (remittance basis of taxation) with the possibility to claim double taxation relief, subject to the minimum annual tax liability.
An individual who is not a permanent resident of Malta and who is eligible to apply under the RPR must prove to the satisfaction of the Commissioner for Revenue (the Commissioner) that such individual satisfies all of the conditions set out below:
Individuals who qualify under the RPR are taxable at the rate of 15% on foreign source income remitted to Malta (remittance basis of taxation) with the possibility to claim double taxation relief subject to the minimum annual tax liability referred to below. The income of a beneficiary, his/her spouse and children not chargeable to tax under these Rules (i.e. at the rate of 15%) is chargeable at the rate of 35%.
A minimum annual Malta income tax payment of €15,000 is payable by the individual. This minimum tax is due for payment by not later than 30th April of the year in which the income is received in Malta and must be accompanied by a return made to the Commissioner confirming that all the conditions of the scheme have been satisfied. The minimum amount is payable in full in both the year when the special tax status was granted and in the year when the individual ceases to possess the said special tax status.
Our professional tax advisors can assist you in clarifying all your doubts.
An application for special tax status in terms of the RPR may only be submitted to the Commissioner through the services of a person who qualifies as an Authorised Registered Mandatory and on the prescribed application form.
A non-refundable administrative fee of €6,000 is payable to the Commissioner on application. In the event that the qualifying owned property is situated in the South of Malta, the administrative fee is reduced to €5,500. A list of localities has been published for the purpose of identifying towns and villages defined in the rules as the “South of Malta” and is set out below:
Our dedicated team of experts can help you at every step of the way for obtaining your Maltese Residency.
The RPR provides for a list of continuing obligations that need to be satisfied by all successful applicants, being that the individual:
Nexia BT is a corporate and private client advisory, audit, accounting and tax firm. Our clients are local and international blue chip companies, financial and other institutions, SMEs, high-net-worth-individuals, the public sector and high-end organisations.
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Nexia BT is an authorised representative mandatary.