Malta offers a range of residency and citizenship schemes that has made it a popular – This articles looks at residency options available for Indian nationals in the EU – Malta
The Individual Investor Programme(IIP)
The Individual Investor Programme (IIP) leads to citizenship of Malta, and is aimed at foreign individuals, who contribute to the economic development of Malta, and their families. It is the first citizenship programme in the European Union to be recognized by the European Commission. In order to be eligible, applicants must satisfy the following criteria: • The acquisition of real estate with a minimum value of EUR 350,000 to be held for at least 5 years; or • Lease a residential immovable property in Malta for a period of 5 years, at an annual rent of at least EUR 16,000; and • Make a contribution to the National Development and Social Fund consisting of EUR 650,000 for the main applicant and an additional EUR 25,000 per direct dependents, including the spouse and minor children. • An investment in stocks, bonds or special purpose vehicles to be identified by Identity Malta, for a minimum value of EUR 150,000 to be held for a minimum period of 5 years. KSi Malta is licensed and authorised by Identity Malta to submit applications on behalf of individuals seeking to apply for the IIP Programme. At KSi Malta we have experts that can help you by performing the necessary due diligence checks and give you an indication whether your application is likely to succeed or not. Through our vast business network and connections we can furthermore provide you with advice on finding the right real estate, and also provide you with step-by-step guidance throughout the application process.
The Malta Residence and Visa Programme (MRVP)
The MRVP scheme offers its beneficiaries and dependents the possibility of a Universal Schengen Visa. With such a residence permit, the applicant and his dependents have the possibility of travelling freely across the Schengen Area without the need of a VISA.
To be eligible for the MRVP programme, the applicants must be third country nationals who are not long-term residents of Malta. Furthermore, they must pass all due diligence procedures and satisfy the following criteria:
• Hold a qualifying property in Malta valued at least EUR 320,000 (EUR 270,000 if situated in the south of Malta or Gozo) or renting it for at least EUR 12,000 per annum (EUR 10,000 if situated in the south of Malta or Gozo);
• Have an annual income of at least EUR 100,000 or accumulated capital of EUR 500,000;
• Holds a qualifying investment of an initial value of EUR 250,000;
• Pay a non-refundable administration fee of EUR 5,500 and the balance of EUR 24,500 upon approval The MRVP and IIP are not the only programmes through which one could become resident of Malta. There are several other means which relate to an individual’s situation, such as employment, business or retirement, which can take the form of tax residence programmes, namely:
• The Global Residence Programme or the Residence ProgrammeThese offer amongst the quickest ways of obtaining Maltese residences. They also offer beneficial taxation possibilities. One must hold a qualifying property of EUR 275,000 if acquired in the North of Malta, EUR 250,000 if acquired in Gozo, and EUR 225,000 in the South of Malta. Instead, the property can also be rented, in which case the minimum lease would be EUR 9,600 per annum if the property is leased in the North of Malta, and EUR 8,750 per annum if leased in Gozo or in the South of Malta. There are also national costs involved, including: EUR 6,000 if the property in question is in the North of Malta and EUR 5,500 if the property in question is in the South of Malta or Gozo.
• The Malta Retirement ProgrammeWhilst this may not necessarily suit all persons moving to Malta for retirement, in certain cases it may offer enhanced tax advantages. The cost of property related to this scheme is the same as ‘The Global Residence Programme’ (see above). On the other hand the national costs involved are EUR 2,500 with the application which must be submitted by an Authorised Registered Mandatory.
• Programmes for persons of certain skills and/or qualifications in particular industriesQualified persons holding senior positions within Maltese companies in: Research and Development; Aviation; Gaming; Financial services; IVF Medical services; Maritime, Oil & Gas; could benefit from a flat tax rate of only 15% on their salaries Besides the above mentioned tax advantages, these Programmes also offer Visa-free Schengen travel possibilities and allow the issuance of tax residence certificates from the Maltese tax authorities.
Maltese Private Taxation
As soon as a person obtains Maltese residence/citizenship due consideration must be given to the Maltese tax implications, if any. The good thing is that Malta’s taxation
manifests a very attractive remittance basis of tax. In other words, unless a person earns income in Malta or brings foreign non-capital income to Malta, no Maltese taxes would apply except for a minimum of EUR 5,000 in annual tax in certain cases. Any tax residence certificates issued by the Maltese authorities would be recognized by worldwide tax authorities for the purpose of double tax relief.
There are various ways on how a foreigner may obtain a working permit. One of them is by registering a Maltese company with EUR 500,000 share capital and then operate a business from Malta. [email protected]
“The good thing is that Malta’s taxation manifests a very attractive remittance basis of tax.”
To find out more on how global desi’s can make the most of Maltas residency options- email [email protected]
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