The Global Residence Programme 2013

The Global Residence Programme ( Legal Notice 167/2013) is a programme designed to attract investment by third country nationals to Malta, that is individuals who are not nationals of the EU, EEA or Switzerland.

Individuals benefitting from this 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.

ELIGIBILITY

 An individual shall be eligible to apply for residence in Malta under the Global Residence Programme, if he or she satisfies all of the following conditions:

 

  • The applicant must own an immovable property in Malta for a value of not less than €275,000 ( minimum property value reduced to €220,000, if the property is situated in the south of Malta and €220,000 if the property is situated in Gozo, or ;
  • the said applicant must rent an immovable property in Malta for not less than €9,600 per annum, or rent an immovable property in Gozo for not less than €8750 per annum;
  • The property holding must not be shared with individuals not listed as dependants on his/her certificate (exemption applies for special carers)
  • The applicant must be in possession of health insurance which covers himself and his dependents in respect of all risks across the whole of the EU normally covered for Maltese nationals;
  • The applicant must be deemed to be a fit and proper person, and therefore, an international due diligence exercise shall be carried out prior to the granting of the special tax status;
  • The applicant must be fluent in English or Maltese;
  • A non-refundable one-off fee of €6,000 must be paid by the applicant upon application, - a reduction of €300 applies in relation to applications for  .


REPORTING OBLIGATIONS

Any individual that has been granted special tax status in accordance with the Global Residence Programme must comply with the following obligations on a yearly basis:

  • The qualified property holding must be retained;
  • The applicant must retain the health insurance and continue to mantaint stable resources;
  • The applicant must not reside in any other jurisdiction for more than 183 days;
  • Special reporting obligations (the filing of an annual declaration together with the annual tax return) and notifications must be complied with.


TAX TREATMENT

  • Applicant must pay a minimum tax of €15,000 every year;
  • All foreign sourced income which has been remitted to Malta shall be taxable at a fixed rate of 15%, with the possibility of claiming double tax relief on such income;
  • A beneficiary and his spouse cannot opt for a separate tax computation;


AUTHORISED REGISTERED MANDATORY

Any application for special tax status must be made through the services of a person that qualifies as an "Authorised Registered Mandatory".

 An ''Authorised Registered Mandatory” must be registered as such with the Inland Revenue Department and is a person who is either;-

  • An advocate;
  • A legal procurator;
  • An appointed notary public;
  • An accountant;
  • A member of the Institute of Financial Services Practitioners;
  • A member of the Institute of Taxation;
  • A member of the Malta Institute of Management

 

Written by: Dr. Mark Hyzler, LL.B, LL.M.(Lond), LL.D.

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Key Persons

  • Mark Hyzler
  • George Hyzler

 

 

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