Malta launched a new residence program in 2013 called The Residence Programme Rules (TRP Rules) which replaces the old Residence Scheme for High Net Worth Individuals. The program addresses EU, EEA (European Economic Area) and Swiss citizens and the regulations for the program were included in the Maltese Income Tax Act and in the Laws of Malta. The new Residence Programme provides more favorable conditions for foreign individuals looking to establish themselves in Malta. Applicants for the Residence Programme must not be enrolled in other programs for obtaining Maltese citizenship or residency.
The conditions imposed by the Residence Programme Rules in Malta refer to taxation and property matters. In exchange, individuals applying to become Maltese residents under the current scheme will benefit from reduced income tax rates. The following criteria must be fulfilled in order to benefit from the Malta Residence Programme Rules:
The Programme also establishes the applicant to pay a minimum tax of 15,000 euros, but the applicant may also apply for a special tax status with the Commissioner of Revenue. All petitions must be submitted through an authorized registered mandatory (ARM) or a law firm in Malta.
The holders of residence permits under the Maltese program will benefit from a flat rate on the personal income tax of 15%, which will be levied on a remittance basis. Any other incomes arising outside the country will be taxed only if it remitted in Malta.
Foreign capitals will not be taxed in Malta. Also, the 15,000 euros tax covers all dependents of the applicant. Compared to the old High Net Worth Individuals Scheme, the applicant is no longer required to deposit a bond with a Maltese bank. Foreign individuals benefiting from the Maltese Residence Programme Rules will be able to travel within the Schengen Area without any visa requirements.
For details about the required documents when applying for the Residence Programme, you may contact our lawyers in Malta.
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