What is the Malta Residency Program and How Does it Work?By: Answerout
Malta or the Republic of Malta is situated on the southern tip of Europe. It can be found just below Sicily, Italy, in the heart of the Mediterranean Sea. It is a beautiful country that is loved by everyone who visits it. However, despite being one of the most beautiful countries in the world, the European island of Malta is currently one of the lowest populated countries in the world with just over 450,000 people living there. This is a huge problem for the country as they lack capital investment and do not have enough people to fill all the available job roles. Thankfully, the Maltese government have come up with a way of overcoming this issue. They have created the Malta residency program, which aims to bring individuals from abroad to fill the available roles in Malta. If you want to know more about the Malta residency program, then keep reading below:
Why Do So Many People Choose to Relocate to Malta?Malta may only be a small island nation, but if you look closely, you will see just how amazing this tiny island is. Malta is a beautiful country that boasts some of the most stunning scenery in the world. Not only that, but with over 300 days of sunshine each year, it is the perfect place to get a good tan. You may have also heard that this stunning island is a diving hotspot. In fact, Malta has frequently been voted as one of the world’s best diving locations. One of the main reasons for this is the crystal-clear waters surrounding the island. As well as being a diving hotspot, Malta is also world-renowned for its unique culture. British, French, Italian, and Arabian customs and traditions are still experienced to this day, alongside the native Maltese. This means that almost anyone can relocate to this country and make it their home.
The Malta Residency ProgramCarrying on from the achievements of the MRVP (Malta Residence and Visa Program), the new Malta residency program was launched in March 2021. This new program aims to entice new foreign investment and workers as well as put Malta in a better position to compete with Residence programs from other European countries.
Why is The Malta Residency Program So Attractive?One of the main benefits of the Malta Residency Program is the tax benefits. Malta has more than 60 double tax deals, ensuring that tax does not have to be paid more than once. Capital gains and income generated from assets or activities inside Malta are subject to personal income tax. However non-domiciled tax citizens benefit from the following:
- A flat-rate tax of 15% on foreign-sourced income remitted to Malta.
- No inheritance taxes.
- No capital gains tax on assets abroad
- No tax on savings and capital remitted to Malta.
- Unless remitted to Malta, there is no income tax on foreign-sourced income.
- No residence requirements
- Family members included – this includes your spouse or partner, economically dependent children, economically dependent parents, and economically dependent grandparents.
- Investment is only required for the first 5 years in Malta.
- You can reside in Malta indefinitely.
- You can travel Visa-free across Europe’s Schengen Area
- Residence in an EU country
How to Apply for the Malta Residency ProgramIf you want to apply for the Malta Residency Program, then you will need to apply to the International Tax Unit of the Commissioner for Revenue of Malta. You will need to be represented by an ARM (Authorized Registered Mandatory) who will advise and process the application for you. They will also assist you throughout the process. In terms of qualifying nationality, you will need to make sure that you are either a Swiss, EEA, or EU national. Nationals from outside of this area will need to apply for the Global Residence Programme instead. One of the main requirements for this program is holding property in Malta. This property must have the following characteristics:
- Rental of property – for a minimum of 9,600 euros in Malta, or 8,750 if located in Gozo or South of Malta.
- Purchase of property – for a minimum of 275,000 euros in Malta or 220,000 euros if located in Gozo or South of Malta.