High Net Worth Individuals & Residence Schemes

hnw residence

Malta’s system of taxation, based on the UK principles of ordinary residence and domicile, has set itself as a pillar on which residence schemes have been raised by the Government of Malta as an attempt to attract High Net Worth Individuals (“HNWI”) to the island.

At the moment, there are currently three schemes which allow EU/EEA and non-EU/EEA nationals to benefit from Malta’s advantageous personal tax system, whereby a permit holder is entitled, inter alia, to pay tax at the rate of 15% of foreign income remitted to Malta, and foreign capital gains remitted to Malta are exempt from tax.

The schemes which apply are the Malta Retirement Programme and the Residence Programme for EU/EEA nationals, whilst the Global Residence Programme targets non-EU/EEA nationals.

These can be briefly listed as follows:

1.    Fit and Proper Test on the applicant
2.    Acquisition of immovable property in Malta, for a certain minimum value of immovable property in Malta or for a minimum annual rent of depending on the applicable Scheme.
3.    Minimum tax payable in Malta depending on the Scheme selected.
4.    Ability to benefit from Malta’s extensive double taxation treaty network, after taking into account the minimum annual taxation payable depending on the Scheme on question.