International expatriates are very welcome and more than 30,000 already call Malta their home. There is no property tax, wealth tax or inheritance taxes to be paid in Malta
Corporate taxation — The rate of corporate taxation is 35%, however, upon distribution of dividends, foreign shareholders may qualify for a refund generally equivalent to 6/7ths of the tax paid, thus resulting in a net tax rate of only 5%.
Individual taxation — There are different tax brackets directly attached to annual income with the maximum rate being that of 35%. In general, expats are taxed on income and certain capital gains generated in Malta and foreign income brought into the country. Foreign capital funds are not taxable even when received in Malta. An annual minimum tax of €5,000 applies in certain instances.
One may choose to be taxed on gross rental income from residential or commercial property at a flat rate of 15% (subject to certain conditions)
One may choose to be taxed on gross rental income from residential or commercial property at a flat rate of 15% (subject to certain conditions).
MALTA GLOBAL RESIDENCE PROGRAMME
GRP offers and alternative residence in Malta and also grants a special tax status by setting the personal tax rate on foreign source income remitted to Malta at 15%. Foreign source capital gains are not taxable even if remitted to Malta. One also has the possibility of claiming double taxation relief, subject to a minimum tax of €15,000 per annum which typically would cover the first €100,000 of remitted income. Malta sourced income is taxable at a flat rate of 35%. The advantages of the GRP may be availed of without the obligation for long-term residency in Malta.
One of the eligibility criteria of the GRP is to hold a qualifying property valued not less than € 220,000 or to rent a property of not less than € 8,750 annually. Other eligibility criteria, application fees and ongoing obligations may apply. Please speak to a qualified consultant for more detailed information
MALTA RESIDENCE & VISA PROGRAMME
MRVP is open to third country nationals i.e. not EU, EEA or Swiss nationals. It grants the right to reside, settle and stay indefinitely in Malta to the beneficiary and dependants with visa-free travel within the Schengen area. It also grants the ability to apply for Long Term Residence status and naturalisation as a Maltese citizen after a certain period of residence in accordance with the citizenship laws of Malta. Children born or adopted after the approval date may also be included subject to an additional contribution and successful due diligence checks. It also grants the possibility of applying for a work permit under a separate process and the possibility of tax benefits under the Global Residence Programme.
Applicants will be required to make a commitment to buy property in Malta for a minimum investment of €270,000 or rent property with a minimum investment of €10,000 annually. Other conditions, application fees, eligibility criteria and ongoing obligations apply. Speak to a qualified consultant for more detailed information
MALTA INDIVIDUAL INVESTOR PROGRAMME (MIIP)
MIIP grants citizenship in a well-respected, economically viable and politically stable EU country, with visa-free travel to more than 160 countries including the US. It also grants the right of establishment in all EU member states and Switzerland and the right to own a second home in Malta. Eligibility for these benefits may also extend to applicant’s dependents including spouses or partners in a relationship, children, parents and grandparents under certain terms. Applicants are required to satisfy certain conditions such as acquire or rent property in Malta, commit to investments in stocks, bonds, debentures, special purpose vehicles; as well as undergo due diligence scrutiny. Application fees, eligibility criteria and ongoing obligations apply. Please speak to a qualified consultant for more detailed information
HIGHLY QUALIFIED PERSONS
Intended to attract highly qualified expat individuals to work in specific sectors of the Maltese economy. Under this regime, qualifying individuals may opt to be subject to a 15% flat tax rate on their qualifying employment income, without being able to claim double taxation relief or any other deductions or credits. The special tax rate applies for a consecutive period of five years for EEA and Swiss nationals and for a consecutive period of four years in the case of third country nationals.
MALTA RETIREMENT PROGRAMME
Applicable for EU, EEA and Swiss nationals who are not in employment and who receive their entire retirement pension as their regular source of income while they are resident in Malta. This must make up at least 75% of their taxable income in Malta and on it they are taxed as a flat rate of 15%. This is subject to a minimum income tax of €7,500 and an additional €500 per dependant per year. These individuals are required to stay in Malta for at least 90 days per year averaged over five years and may claim double taxation relief on such income.
All information in this article is intended only as a general guideline. Whilst all reasonable efforts have been made to ensure accuracy, no responsibility for any errors or omissions is assumed by Property Malta Foundation.
