The High Net Worth Individuals Rules have now been amended to reflect the thresholds of the Global Residence Programme and are now entitled the Residence Programme Rules (RPR).
Applicants taking up residence in Malta may benefit from a special and favourable Malta Tax status and treatment and Tax Incentives.
In late June 2014 (earlier this year), the Maltese government also launched the Global Residence Programme (GRP) to replace the HNWI programme (for Non-EU/non-EEA/non-Swiss nationals) which was launched in 2012. The GRP programme lowered the minimum thresholds for the purchase of immovable property and rental property by foreigners in Malta. The minimum tax threshold for tax exiles who purchase property in Malta was lowered to €15,000 from the previous €25,000. The bond amount of €500,000 was removed completely while the application fee for foreigners purchasing property in the South of Malta and Gozo was slightly reduced.
Applicants taking up residence in Malta may benefit from a special and favourable tax status and treatment as follows:
Successful applicants would also be entitled to relief from double taxation otherwise suffered on income arising outside Malta which is received in Malta. Such relief would be available in the form of unilateral relief (in terms of the Malta Income Tax Act) or, alternatively, under a treaty in force between Malta and the country of source of the relevant income. However, after taking any double tax relief claimed into account, an EU/EEA/Swiss national beneficiary would be required to make an annual minimum Malta income tax payment of at least €15,000.
An applicant seeking to benefit from the favourable tax treatment described above would be eligible to apply to the Malta tax authorities for confirmation of his/her special status as such provided that the following key conditions are satisfied (on an initial and ongoing basis):
An applicant seeking confirmation of the special tax status must be submitted to the local tax authorities by an Authorised Mandatoryregistered as such with the local tax authorities and engaged for the purposes by the applicant. The CSB Group is registered with the local tax authorities as an Authorised Mandatory.
Malta does not levy any wealth taxes or estate or such other duties. However, duty is chargeable in Malta upon any inter vivos or causa mortis transfer of immovable property or marketable securities when the document effecting the transfer is executed or used (eg. produced before a court as evidence) in Malta.
CSB Group was one of Malta’s first officially – recognised mandatories by the IRD (Inland Revenue Department). CSB Group can therefore assist individuals who wish to apply for a special tax status under the Residence Programme Rules.
For more information about the Residence Programme Rules, the Malta Global Residence Programme (GRP) and the Malta Individual Investor Programme, kindly Contact Us