Malta’s latest global residency scheme launched in June 2013 is an attractive residency package offering advantageous thresholds for non-EU nationals seeking to live and work in Malta’s spectacular Mediterranean lifestyle.
The Global Residence Scheme compliments the previous High Net Worth Individuals scheme, introduced by the government back in September 2011. This scheme has brought about a reduction in the thresholds by which non-EU nationals can apply. The previous HNWI scheme required a bond of €500,000 placed with the local government, alongside an additional €150,000 per dependent.
The new Global Residence Scheme offers greater flexibility and access to those foreign nationals pursuing a new life in Malta. The scheme allows non-EU nationals to purchase or rent a property in Malta and direct their income to Malta whilst benefitting from a permanent residency permit. In order to be eligible for this scheme, a non-EU National is required to purchase a property at no less than €220,000 for properties located in the south of Malta or the island of Gozo, or no less than €275,000 for properties in the central and northern localities (such as Mellieha and Sliema). In the case of rental properties, in order to comply for this scheme the monthly rental value of the property must exceed €800 (in central and northern localities) or €730 (southern localities and Gozo). An advantageous flat tax rate of 15% is applied on all income declared on the island.
Dependents’ restrictions have been also been relaxed to allow the inclusion of relatives beyond just wives and children and now includes children up until 25 years of age, brothers, sisters and direct relatives of the applicant, subject to approval from the Director of the Inland Revenue.
Aside from advantageous tax rates and more favourable purchasing conditions, the new Global Residence Scheme is free from minimum stay restrictions, however, applicants are not permitted to reside for more than 183 days in another jurisdiction aside from Malta.
A standard rate, non refundable application fee has been established at €6,000 (or €5,000 on property purchased in the south or Gozo).
Applicants for the Global Residence Scheme are able to work and are permitted to set up a business on the island, applicable to a tax rate of 35% on local income and 15% on income declared from abroad. All applicants and their dependents must also be covered by a health insurance policy.
Malta’s new Global Residence Scheme will shortly be open to EU nationals, and is a highly attractive scheme for foreigners migrating overseas looking to set up home and business in a safe, English-speaking country with a favourable Mediterranean climate and a high standard of living.