Global Residence Programme Scheme
On the 1st of July of the year 2013, the Maltese government has issued Legal Notice 167 of 2013 which has served to launch the Global Residence Programme Rules of 2013.
Who may benefit from the Global Residence Scheme?
A beneficiary of the Global Residence Scheme is a third country national who has been granted a special tax status in terms of the Global Residence Rules. An application may be lodged against a fee of €6,000.00. Every beneficiary may have dependants who will appear on the same Global Residence Application Scheme and without needing to pay any application charges as long as they satisfy the definition of a “dependant”.
Tax status of holders of the Global Residence Scheme
Persons who are eligible under the Global Residence Scheme will be subject to tax in Malta at a favourable flat rate of 15% on a remittance basis (i.e. on foreign source income which is remitted to Malta). Minimum tax payable per annum in terms of any income arising outside Malta shall be equivalent to €15,000.00. An eligible person will not be chargeable to tax in Malta on foreign source capital gains. It is to be kept in mind that local source income and gains would be taxable in Malta at the higher rate of 35%. Lastly, any income derived in Malta or any foreign sourced income brought to Malta by a dependent will be subject to 35% tax.
The criteria for eligibility for the Global Residence Scheme
The following points serve as a breakdown of the applicable requirements for an applicant to be eligible to apply for the Global Residence Scheme:
Non-EU Nationals/Non-EEA/Non-Swiss Nationals:
An Eligible individual must be in possession of a valid travel document and must qualify as a fit and proper person;
Eligible individuals shall be required to acquire immovable property in Malta. This immovable property must qualify under the “qualifying property” rules. These include the following:
(i) the applicant may purchase a qualifying property – the value of the property must be a minimum of €275,000.00 if found in Malta and a minimum of €220,000.00 if found in Gozo;
(ii) the applicant may lease a qualifying property – the value of the lease of the property must be of a minimum of €9,600.00 if found in Malta and €8,750.00 if found in Gozo.
Eligible individuals and their dependants should be in possession of an appropriate health insurance which covers for Maltese hospital medical expenses;
The applicant and his family are NOT permitted to reside in any other country or jurisdiction for a period extending 183 days, thereby becoming tax residents therein.
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