Low-tax Maltese residency programmes

Malta is not only known because of its law taxes, but the island nation is one of Europe’s fastest developing countries.

Malta introduced the only citizenship by investment programme, which was accepted by the European Union. In addition, Malta introduced several different residency by investment programs, which help foreigners to significantly reduce their taxes.

The HNWI (High Net Worth Individual) program, launched in 2011, became quickly popular not only among the third country nationals, but also European citizens started to move in the Mediterranean paradise, because of the important tax benefits. During the summer of 2014, the Maltese government launched the Maltese Global Residency Rules for third country nationals and the Maltese Residency Program Rules 2014 (RPR) which provides even more tax advantages for the Europeans.

Only citizens of the European Union, the European Economic Area and Switzerland can use the RPR option. The essence of this program is that new Maltese residents must pay only EUR 15,000 as flat tax each year. If the taxpayer not brings his/her worldwide income to Malta, there are no more taxes to pay. The worldwide income brought to Malta is taxed at flat 15%. Even the family of the resident can move to Malta without any further tax liability. The lump-sum tax is to be paid to the Inland Revenue by the end of April each year. Important thing to know that if an EU citizen moves to Malta to work, he/she will pay the general tax rates as any other Maltese resident. The RPR is a separate scheme, tax relief only applies to participants of the programme.

The applicants of the program must purchase or rent properties in Malta. Value limit of the properties qualified for the program depend on their location within the country. The minimum purchase price in the central and northern regions of Malta is EUR 250,000. While on the southern side of Malta and on the island of Gozo the price limit is lowered to EUR 220,000. The amount of rent is determined in the same way. Minimum annual rent of EUR 9,600 to be paid in Malta’s central and northern regions and on the southern side and Gozo, it is enough to pay EUR 8,750 per year. The requested amounts can be enough to purchase or rent a very cosy apartment with three bedrooms and pool on the waterfront.

The Maltese tax system is of course fully compatible with the EU regulations and standards. It is not a coincidence that more and more people are choosing Malta to live. Quality of life in Mediterranean island nation is among the highest in the European Union. Nevertheless, the cost of living is among the lowest in the EU. Winter is short and mild, the summer is 8 months long in Malta and one can swim in the sea even at the end of December.The country is bilingual, in addition to Maltese English is also official language. Health care and education are excellent, with a population of 450,000 Malta receives more than 1.2 million tourists annually, many of them come for the purpose of learning English. Is is worth to mentioning that the crime is very low, for example no cars are closed on the island of Gozo, some homes don’t even have a key.

Only an Authorised Registered Mandatory with the permission of the Maltese government can assist clients to obtain the residency permit through the Global Residency Programme and the Residency Rules 2014. Crystal World Wide’s representative in Malta has all necessary permissions to convey during the process of obtaining the residency permits. There is more information about forming company in Malta here, and here can be found a post about the benefits of registering a company in Malta.


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