Malta Launches a High Net Worth Individuals Tax Scheme

Contributed by Malta Company Registration Services [www.companyregistrationmalta.com]

A HIGH NET WORTH individuals scheme has just been launched by the Government of Malta to replace the permanent residence scheme. The scheme is intended to attract people who do not come to Malta to simply buy property but people who would also contribute to the economy.  

The following is a brief summary of the scheme:

EU Nationals

1. The applicant must purchase property worth at least €400,000 (previously €116,000) or spend €20,000 a year in rent.
2. The applicant must have health insurance recognized across Europe.
3. An application fee of €6,000 is payable to cover expenses involved to do a ‘fit and proper’ test to confirm that the applicant is ‘desirable’.
4. The applicant must reside in Malta for a minimum of 90 days per year and not more than 183 days in any other jurisdiction.
5. The minimum tax payable is €20,000 a year and €2,500 per dependent. Foreign income will be taxed at 15%. Normal tax will be paid on any local income.
6. Application for the special tax status may only be made through the services of Registered Mandatory (recognized Maltese Warrant Holders).

Non-EU residents

Same as EU Nationals with the following differences:

1. Renewal of VISA every three months or enter into a contract with the government providing a financial bond of €500,000 and €150,000 per dependent, to effectively purchase permanent residency after five years when the bond will become the government’s.
2. The minimum tax payable is €25,000 a year

For more detailed information on the above scheme and on how we can help you, please contact us at jvg@go.net.mt or visit our website at www.companyregistrationmalta.com 

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