The Global Residence Programme Rules were introduced by virtue of Legal Notice 167 of 2013 and these rules came into force with effect from 1st July 2013.
The new scheme is so far the most advantageous residence scheme available to non-EU nationals, particularly since the minimum value threshold related property investments and rental has been lowered together with the lowering of the minimum annual tax liability.
To apply under the GRP Rules, an individual must primarily be a “third-country national” being a person who is not an EU, EEA or Swiss national. Such person must also not be a “long-term resident” of Malta
Furthermore, the particular individual must also satisfy certain criteria, that are.:
– The applicant must have a “Qualifying Property Holding” being EITHER
(a.) A ‘Qualifying Owned Property’ of not less than €275,000 in Malta or of not less than €220,000 if in Gozo or in the “south of Malta” OR
(b.) A ‘Qualifying Rented Property’ in Malta for €9,600 per annum or for €8,750 per annum if the property is situated in Gozo or “in the south of Malta”
– The applicant must not be benefitting from the Residence Scheme Regulations, the High Net Worth Individual Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules and the Highly Qualified Persons Rules;
– The applicant must be in receipt of stable and regular resources that are sufficient to maintain himself and his dependants;
– The applicant must be in possession of a valid travel document;
– The applicant must be in possession of health insurance which covers himself and his dependants in respect of all risks across the EU as are normally covered for Maltese nationals;
– The applicant must be fluent in either Maltese or English;
– The applicant must be a fit and proper person (an international due diligence exercise is carried out by the Inland Revenue Department prior to granting the special tax status);
– A non-refundable one-off registration fee of €6,000 (€5,500 in the case of applications involving a qualifying property holding in the south of Malta) must be paid upon application.
– A low personal tax rate at 15% on remitted income.
– A low annual tax liability of a total of Eur15,000 per family.
– Other income that is not covered by these Rules is charged separately at the rate of 35%.
– No world-wide income/wealth tax – tax only paid on income remitted to and kept in Malta
– No minimum investment requirements
– No Inheritance/Wealth Taxes
An individual shall, with effect from the appointed day, cease to possess special tax status under these rules if any of the requirements mentioned above is no longer satisfied. Furthermore, the individual must not stay in any other jurisdiction for more than 183 days in a calendar year.
authorised registered mandatory
An application for the special tax status must be made through the services of a person that qualifies as an ‘Authorised Mandatory’ and is registered as such with the Inland Revenue Department. Camilleri Galea Ltd. is able to offer this service as it is registered as an Authorised Mandatory.
Disclaimer: Persons using this information are advised to seek appropriate professional advice following the publication of such detailed amendments or guidelines and prior to implementing any actions based on the information given in these updates. This update contains general information only, and Camilleri Galea Ltd.is not rendering professional advice or service by means of this update. Before making any decision that may affect your business or finances, you should consult a qualified professional adviser. Camilleri Galea Ltd. shall not be responsible for any loss whatsoever sustained by any person who relies on this information.
For more information
Camilleri Galea Ltd.,1st Floor, Suite 3, Central Business Centre, Mdina Road, Zebbug 9015, Malta