Global Residency Programme
In June 2013, the Global Residence Programme – Malta’s latest residence option – was launched for non-EU foreigners, offering great advantages and favourable thresholds. A similar residence programme available to EU nationals is expected to be published shortly.
The Global Residence Programme in brief:
Under the Global Residence Programme, the value of the immovable property bought in Malta by foreigners has to be at least €275,000. However, when the property is in the south of Malta or in Gozo, the minimum value can be €220,000.
Applicants will also be eligible if they rent property on an annual basis of €9,600 in Malta and €8,750 in Gozo or in the South of Malta.
Minimum tax to be paid in advance reduced to €15,000 on income derived in Malta, with further income charged at 15%.
Residents under this Programme and their dependents, have to be covered by health insurance. They will not be entitled to free state health services.
The new Residence Programme for Foreigners replaces the High Net Worth Individuals Scheme for non-EU foreigners.
The requirement to place a €500,000 bond with the government and an additional €150,000 per dependent has also been removed.
A standard application processing fee of €6,000 is applicable if a property is purchased in Malta and €5,500 if the property is bought in Gozo or South of Malta.
There are no minimum stay requirements.
More detailed information:
The new residence option, referred to as Global Residence Programme, will allow people who buy or rent a property in Malta and direct their income to Malta to benefit from a residence permit.
In order to qualify for residency, under the new Global Residence Programme, a non-EU foreigner will need to buy a property of €220,000 or over (if the property is in the South of Malta or in Gozo) or of a minimum value of €275,000 for properties in Central and Northern Malta.
Foreign nationals who are interested in renting a property, can also do so and they are eligible for Residency given that the annual rental value is of €9,600 (or €800 monthly) in Malta and €8,750 (or €730 monthly) in Gozo or the South of Malta.
The Global Residence Programme replaces the High Net Worth Individuals (HNWI) Scheme which was introduced back in September 2011 and which required much higher thresholds for non-EU foreigners to apply. Under the old scheme, non-EU foreigners also needed to place a €500,000 bond with the government and an additional €150,000 per dependent, however this provision has now been removed, making the new residency scheme much more favourable and accessible to those interested in taking up residency in Malta or Gozo. The Global Residence Programme will also shortly be made available to EU nationals.
According to the new Global Residence Programme, a flat rate of 15% is applicable on income declared in Malta. A minimum tax of €15,000 is applicable, payable in advance. (This has been reduced from €25,000 plus €5,000 per dependent under the old HNWI Scheme).
Applicants of the new Global Residence Programme have no minimum stay requirements. However they may not spend more than 183 days in any other jurisdiction.
In terms of application fees, a standard rate has been established, this being €6,000 in the case of property purchased in Malta and €5,500 if the property is bought in Gozo or South of Malta.
Applicants of the new Global Residence Programme will also be able to work or set up business in Malta and will be taxed at a flat rate of 35% on any income arising in Malta. The standard 15% flat rate will be applicable on income declared in Malta from overseas.
Under the new Global Residence Programme, foreign residents including their dependents have to be covered by health insurance. The new regulations will come into effect through a legal notice by the end of June 2013. A separate legal notice is expected later on in the year, to bring into effect the programme for EU nationals.
Speaking at the launch of the programme, Parliamentary Secretary for Competitiveness and Economic Growth Edward Zammit Lewis said: “The new programme is addressed specifically to address the needs of non-EU and non-EEA foreign nationals. It is government’s intention to look into all the programmes that Malta has and if necessary introduce improvements to make them more attractive.”
The government will also simplify the application procedure by introducing the concept that a mandatory may appear for his client when applying for the programme and also either applying for or procuring the Uniform Residence Permit. Zammit Lewis said the government will be providing the programme all the necessary support and resources to ensure its success.