A snap shot of the various Residence Programmes currently accommodated by Malta’s strategic legislative framework.
Malta’s accession to the EU and subsequent establishment as a European domicile of choice across various key industries (including financial services, remote gaming and e-commerce), has directly contributed to the jurisdiction’s increasing popularity as a place of permanent residence and a hub for international business transactions, resulting in the cumulative demand for the taking on lease of both residential and commercial property in Malta.
Townhouses, farmhouses, penthouses, houses of character, villas, bungalows, maisonettes, country views, sea views. You want it, Malta’s got it.
By virtue of Legal Notice LN47/2014, the Government of the Republic of Malta grants, after a rigid and thorough due diligence process, naturalisation by investment to reputable individuals and their dependants who will make a significant contribution to the social and economic development of the country. The Malta Individual Investor Programme (IIP) is the first citizenship programme in the EU to be recognised by the European Commission.
An overview of the salient provisions comprising the Maltese employment law architecture.
The residence scheme for foreign retiree individuals who are European Union, European Economic Area (Iceland, Norway, Liechtenstein) and Swiss nationals was introduced by virtue of Legal Notice 317 of 2012 and Article 56(3) of the Income Tax Act – Chapter 123 of the Laws of Malta in terms of which a successful applicant is granted a special tax status.
In terms of the Repatriation of Persons established in a Field of Excellence Rules, (Subsidiary Legislation 123.142), an eligible individual who is established in a field of excellence and returns as an ordinary resident to Malta may opt to have his income from employment exercised in Malta charged to tax at a flat rate of 15% without the facility to claim any deductions. Any other income will be taxed at the rate applicable to that income had the option not been exercised.
The Global Residence Programme (GRP)is a programme designed to attract non-EU, non-EEA (Iceland, Norway or Leichtenstein) and non-Swiss nationals who are not long-term residents. Individuals benefitting under the GRP may be employed in Malta subject to the satisfaction of the requisite conditions for obtaining a work permit. Beneficiaries may also have special carers providing a service in their qualifying property, subject to the satisfaction of certain prescribed procedures.
The Highly Qualified Persons Rules (Subsidiary Legislation 123.126) is intended to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by the Malta Financial Services Authority, companies licensed by the Lotteries and Gaming Authority and companies holding an Air Operators’ Certificate issued by the Authority for Transport in Malta. The rules for the scheme came into force with effect from 1 January 2010 and apply to income which is brought to charge in year of assessment 2011 (basis year 2010) and apply to individuals not domiciled in Malta, with the exception to the positions associated with the aviation sector where the rules are effective from 1st January 2012 i.e. year of assessment 2013.
Individuals from the EU, the EEA (Iceland, Norway and Liechtenstein), Switzerland and outside the EU are eligible to apply for a special tax status in terms of the High Net Worth Individuals Rules.