The Malta High Net Worth Individuals Rules – EU/ EEA/ Swiss Nationals
High net worth individuals (HNWIs) taking up residence in Malta may benefit from a special and favourable Malta tax status and treatment as follows:
• Income arising outside Malta which is received in Malta would be chargeable to tax in Malta at the flat rate of 15%;
• Income arising in Malta and capital gains realised in Malta would be taxable in Malta at the higher rate of 35%;
• No Malta tax would be chargeable on income arising outside Malta which is not received in Malta;
• No Malta tax would be chargeable on capital gains realized outside Malta even if these are received in Malta.
Individuals who may benefit from these Rules are:
• EU nationals (excluding nationals of Malta);
• Nationals of Iceland, Norway and Liechtenstein;
• Nationals of Switzerland;
• Any individual who is not a citizen of the EU.
The High Net Worth Individuals – EU/EEA/Swiss Nationals Rules apply to EU nationals, nationals of Iceland, Norway, Liechtenstein and Switzerland.
Conditions that must be satisfied:
a) Applicant must purchase immovable property in Malta for a value of not less than €400,000
b) Rents an immovable property in Malta for not less than € 20,000 annually as lessee, and in either case, the applicant and his family members have their habitual residence in such property as their principal place of residence.
• Only the beneficiary and his / her family members are allowed to reside in the Qualifying Property , and
• The property may not be leased or sub-leased. Proof of ownership has to be provided.
Definition of family members:
• The beneficiary’s ascendants (the father or mother);
• The beneficiary’s descendants (children or descendants of such children);
• The beneficiary’s brothers, sisters, spouse/s, or
• Persons with whom the beneficiary is in a stable and durable relationship.
(c) the applicant has to be able to proof that he is financially stable and that he can maintain himself and his family without the need to recur to any social assistance from the Maltese Government.
(d) the applicant is in possession of a valid travel document. The applicant needs to provide a copy of his / her main passport page or national official identity card to the application.
(e) the applicant is in possession of a health insurance policy covering him and his family whilst in Malta.
(f) the applicant is not domiciled in Malta and does not intend to establish his domicile in Malta within 5 years from the date of the application for special tax status. The applicant needs to provide a declaration wherein it is declared that he / she is not domiciled in Malta and has no intention to establish his / her domicile in Malta so as to prove this condition in.
(g) the applicant is not a long-term resident.
A non-refundable fee of €6000 is payable upon application.
Beneficiaries under this programme will be taxed a flat rate of 15% on income remitted to Malta.
Notwithstanding this beneficiaries can still claim relief from double taxation either under one of Malta’s extensive list of double taxation agreements or under the unilateral relief provisions available , provided that;
• The minimum amount of tax payable by a beneficiary is € 20,000 for any year of assessment, and
• A beneficiary with dependents must pay an additional € 2,500 for any year of assessment for every dependent.