Malta Revamps HNWI Expat Incentive Scheme

By ExpatBriefing.com Editorial 12 June, 2013

The Maltese Government has enhanced the terms of the incentive scheme offered to high net worth individuals (HNWIs) seeking to obtain a residence permit.

Launching the program, Malta's Parliamentary Secretary for Competitiveness and Economic Growth, Edward Zammit Lewis announced that the Government would enact the necessary legislation to introduce the program by the end of June 2013.

As under the previous program, introduced by the last government, wealthy persons seeking a permanent residency visa will have to purchase high-value property and make a minimum tax contribution each year to Maltese coffers.

Zammit Lewis said the Global Residence Programme would boost the housing market, generate additional revenues for Malta, and provide a boost to the financial services, leisure and hospitality industries.

Zammit Lewis said: “The Government will support this scheme with all the necessary infrastructure to operate and work well. We will see that the procedures that operate this program are not bureaucratic and create the least possible disruption to applicants who want to invest and pay taxes in our country."

Under the terms of the scheme, the taxpayer must purchase immovable property worth at least EUR275,000 (USD365,000) in Malta or EUR220,000 in Gozo or the south of Malta, where property prices are generally lower. This is a marked reduction on the previous requirement of EUR400,000. Alternatively, the individual may rent property for no less than EUR9,600 in Malta, or EUR8,750 in south Malta or Gozo (down from EUR20,000).

The taxpayer must make an annual tax contribution of no less than EUR15,000, regardless of their locality. This is markedly less than under the previous scheme, requiring a revenue contribution of EUR25,000 plus EUR5,000 per dependent.

Tags: Individuals | Expatriates | Citizenship | Tax | Investment | Business | Malta | Fiscal Policy | Law | International Financial Centres (IFC) | Offshore | Legislation | Individual Income Tax | Services |

 





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