Ø INDIVIDUAL INVESTOR PROGRAMME (IIP)
This programme is designed to facilitate Maltese Citizenship by Investment to non-Maltese nationals and their dependents.
To allow for the grant of citizenship under this scheme, there are a number of investment requirements as outlined below.
Prospective applicants need to contribute towards the National Development and Social Fund used to improve the quality of life in Malta through social and capital projects as follows:
· €650,000 for main applicant, of which a non-refundable payment of €10,000 shall be remitted as a non-refundable deposit prior to submission of the application;
· €25,000 for spouse;
· €25,000 for each and every child below 18 years of age;
· €50,000 for each and every unmarried child between 18 years of age and 26 years of age;
· €50,000 for each and every dependent parent above 55 years of age
Acquire and hold a residential immovable property in Malta having a minimum value of €350,000 or Lease a residential immovable property in Malta for a minimum annual rent of €16,000.
Invest in Malta an amount of €150,000 amongst others in stocks, bonds, debentures, special purpose vehicles or other investment vehicles as may be identified from time to time by Identity Malta and this said investment is to be retained for a period of not less than 5 years.
Main applicant needs to provide proof that he/she has been a resident of Malta for a period of at least twelve months preceding the day of the issuing of the certificate of naturalization.
Beneficiaries of the Global Residence Programme provided for under the Income Tax Act shall be allowed to apply for the Individual Investor Programme subject to satisfying all the additional eligibility requirements of the programme.
Ø HIGHLY QUALIFIED PERSONS RULES
Malta has been modernising its economy and is becoming recognized as a highly functional, low cost, well regulated jurisdiction with the underlying theme being availability of trained staff through investment in education and training.
With the rapid and extensive expansion of the financial and gaming services industries since joining the EU and also the aviation services in recent years, is showing a significant need for additional highly qualified workers. Therefore, the need is being felt for the importation of knowledge particularly in those areas of the financial services sector, the gaming sector and the aviation sector where local expertise is lacking.
The objective of the Highly Qualified Persons Rules, is to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by the Competent Authorities, namely, the Malta Financial Services Authority, companies licensed by the Lotteries and Gaming Authority and undertakings holding an Air Operators’ Certificate or an Aerodrome Licence issued by the Authority for Transport in Malta.
"Eligible office" comprises employment in one of the following positions:
- Actuarial Professional
- Aviation Continuing Airworthiness Manager
- Aviation Flight Operations Manager
- Aviation Ground Operations Manager
- Aviation Training Manager
- Chief Executive Officer
- Chief Financial Officer
- Chief Commercial Officer
- Chief Insurance Technical Officer
- Chief Investment Officer
- Chief Operations Officer (including Aviation Accountable Manager)
- Chief Risk Officer (including Fraud and Investigations Officer)
- Chief Technology Officer
- Chief Underwriting Officer
- Head of Investor Relations
- Head of Marketing (including Head of Distribution Channels)
- Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)
- Portfolio Manager
- Senior Analyst (including Structuring Professional)
- Senior Trader/Trader
- Odds Compiler Specialist
"Eligible office" in an aerodrome licensed undertaking refers to employment in the following position:
- Chief Executive Officer
Individual income from a qualifying contract of employment in an “eligible office” with a company licensed and/or recognised by the Malta Financial Services Authority is subject to tax at a flat rate of 15% provided that the income amounts to at least €81,205 adjusted annually in line with the Retail Price Index. The 15% flat rate is imposed up to a maximum income of €5,000,000 (five million euro), the excess is exempt from tax.
Qualifying Contract of Employment
An individual may benefit from the 15% tax rate if he satisfies all of the following employment conditions:
- derives employment income subject to income tax in Malta
- has an employment contract subject to the laws of Malta and proves to the satisfaction of the Competent Authority that the contract is drawn up for exercising genuine and effective work in Malta
(Note: where an individual receives salaries from different companies in the same group and the group relationship of such companies is of 100% ownership, he will still be eligible if the aggregate salaries (excluding fringe benefits) are higher than the minimum thresholds as specified above).
- proves to the satisfaction of the Competent Authority that he is in possession of professional qualifications and has at least five years professional experience;
- has not benefitted from deductions available to investment services expatriates with respect to relocation costs and other deductions (under article 6 of the Income Tax Act);
- fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
- proves to the satisfaction of the Competent Authority that he performs activities of an eligible office; and
- proves that:
- he is in receipt of stable and regular resources which are sufficient to maintain himself and the members of his family without recourse to the social assistance system in Malta;
- he resides in accommodation regarded as normal for a comparable family in Malta and which meets the general health and safety standards in force in Malta;
- he is in possession of a valid travel document;
- he is in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and the members of his family.
The Global Residence Programme (GRP) is a programme designed to attract individuals who are not nationals of the EU, EEA or Switzerland and who are not long-term residents. The individual must not be already a beneficiary of any of the below tax programmes:
· Residents Scheme Regulations;
· High Net Worth Individuals Rules;
· Malta Retirement Programme Rules;
· Qualifying Employment in Innovation and Creativity Rules; or
· Highly Qualified Persons Rules
However an individual may renounce the right to the benefits provided under any of the above-mentioned Rules prior to submitting an application in terms of Global Residence Programme.
Individuals benefitting from this Global Residence Programme are not precluded from working in Malta, provided they satisfy the requisite conditions for obtaining a work permit. Beneficiaries may also have special carers providing a service in their qualifying property, as long as all the requisite procedures are satisfied.
The GRP does not impose a minimum stay requirement and permit holders are not required to spend a minimum amount of days in Malta.
Tax Treatment and Minimum Tax
A beneficiary who has been granted special tax status in accordance with the GRP, will be subject to tax at a rate of 15% on any income that is received in Malta from foreign sources by the beneficiary and his/her dependents. Beneficiaries under this scheme will need to pay a minimum tax of €15,000 annually. This minimum tax covers income of the beneficiary and his / her dependents that arises outside Malta and is received in Malta and does not include income that arises in Malta. Other income that is chargeable to tax in Malta of the beneficiary and the dependents, that is not charged at the 15% special rate, will be charged at the rate of 35%.
Immovable Property requirements
Applicants must own or rent a qualifying owned property or qualifying rented property which the individual occupies as his principal place of residence worldwide. The value of the property is established as follows:
For immovable property purchased in the south of Malta, the minimum value must be €220,000 whereas the minimum value for a property bought in Malta other than in the south of Malta is €275,000. For property purchased in Gozo, the minimum value established is €250,000.
For immovable property rented in the south of Malta and in Gozo, the minimum rent payable must be €8,750 per annum whereas the minimum rent payable for a property rented in Malta other than in the south of Malta and Gozo is €9,600.
Ø MALTA RETIREMENT PROGRAMME (MRP)
The Malta Retirement Programme is a programme designed to attract nationals of the EU, EEA and Switzerland who are not in an employment and are in receipt of a pension as their regular source of income. Individuals benefitting from this Programme may hold a non-executive post on the board of a company resident in Malta. This implies that the beneficiary would be prohibited from being employed by the company in any capacity.
These individuals may also partake in activities related to any institution, trust or foundation of a public character and any other similar organization or body of persons, which are also of a public character, that is engaged in philanthropic, educational or research and development work in Malta.
A beneficiary who has been granted special tax status in accordance with this scheme will be subject to a rate of 15% on any income that is received in Malta from foreign sources by him/her or his dependents. A minimum tax of €7,500 annually and a further €500 in respect of every dependent is to be paid.
The applicant must own or rent immovable property which the individual occupies as his principal place of residence worldwide. The minimum value of the property was established as follows,
Property owned/purchased in:
· Malta, €275,000
· Gozo, €250,000
Property rented in:
· Malta, annual rent of €9,600
· Gozo, annual rent of €8,750
Applicant must be in receipt of a pension and this pension must constitute at least 75% of the applicant’s Malta chargeable income for any particular tax year. The beneficiary may only generate up to 25% of his/her total chargeable income from any non-executive posts as referred to above.
Beneficiary must be in possession of sickness insurance which covers him/her and his dependents in respect of all risks across the whole of the EU normally covered for Maltese nationals.
Beneficiary must not be domiciled in Malta and does not intend to establish his/her domicile in Malta within five years from the date of application.
A non-refundable administrative fee of €2,500 needs to be paid upon application.