Malta – Residency and Investment options Stanley Bonello | October 2014

Malta – Residency and Investment optionsStanley Bonello | October 2014

Rental Investment

Growing rental market, partly due to influx of foreign nationals relocating to Malta for

retirement, lifestyle or work reasons

Rental returns averaging at 4% to 6% per annum

Demand exceeding supply for commercial property leases.

Rental Investment

Typical example – Tigne Point, Sliema

1 bedroom apartment purchased at €370,000, rents for about €15,000 per annum

(circa 4% rental return)



Cost does not include furnishings. Rental return varies according to level of finishes, size of apartment and floor level

Rental Investment

Typical example – Portomaso, St Julians


(circa 4.6% rental return)




Rental Investment

Typical example – Ta’ Monita, Marsascala






Rental Investment

Typical example – Pender Gardens, St Julians






Malta / Global Residency Programme

15% flat tax rate on income remitted to Malta

No minimum stay requirements

Ability to work and/or set up business in Malta

Ease of movement within EU Schengen Zone countries

Application can be done through an authorised mandatory (not necessarily in person)

benefits

Malta / Global Residency Programme

€15,000 minimum tax paid

Requires purchase of a property with a minimum value of Є220,000

or annual rental of €8,750

Residents and dependents require health insurance

Standard application processing fee from €5,500

Residents may not spend more than 183 days in any other single jurisdiction

(based on a declaration by the applicant at the initial stage)

conditions

Individual Investor Programme

Introduced in January 2014

Allows for the grant of citizenship to duly qualified, reputable foreign individuals and

families (EU and non-EU nationals) who make a significant contribution to the

economic development of Malta.

Dual citizenship allowed (as per Malta Citizenship act).

Ability to work and/or set up business in Malta

benefits


Reasonable contribution and efficient application process.

World’s strictest due diligence standards and vetting of applicants, thus ensuring only

highly respectable applicants will be admitted.

Visa-free travel to more than 160 countries in the world, including the USA

EU citizenship gives right of establishment in all EU countries and Switzerland.

Tax paid only on income remitted in Malta at progressive rates of up to 35%.

(In the case of applicants domiciled in Malta, tax is applicable on worldwide income.)

benefits


For the main applicant a contribution of €650,000 is required. An additional contribution

of €25,000 is required for a spouse and for each child under the age of 18.

The application may include children between the ages of 18 and 25 years if they are

financially dependent on the main applicant and not married; in those cases the

additional contribution is set at €50,000 for each such adult child.

Parents over the age of 55 can also be included in the application as dependents, if they

are living with and are fully supported by the main applicant. In this case, likewise, an

additional contribution of €50,000 is required per person.

conditions


Due Diligence fees applicable: €7,500 for main applicant; €5,000 for spouses, adult

children and parents; and €3,000 each for children between 13 and 18 years of age.

The applicant must have no criminal record. A person who has been denied a visa to a

country with which Malta has visa-free travel arrangement shall not be entitled to

apply under the program.

A person who is deemed a potential national security or reputational risk, or is subject

to criminal investigation will also be denied citizenship.

conditions


Applicants commit to retain a residence in Malta for a period of at least 5 years,

through the purchase of a property, for which the minimum value must exceed

€350,000, or through leasing of a property (minimum annual rent €16,000 or over).

An investment of €150,000 in Government approved financial instruments is required,

which must be maintained for a minimum period of 5 years.

The programme is limited to the first 1,800 approved applications.

Application is to be submitted through a local Approved Agent.

conditions


Residency status: on buying/renting their property in Malta, citizenship candidates are

issued an identity card. Citizenship is granted after 12 months from date of property

purchase or rental. Candidates need not spend 365 days in Malta before citizenship is

granted. Residence is defined under Maltese law as an intention to reside in Malta for

any fiscal year, usually evidenced by a stay of a minimum of 183 days or by the

purchase / rental of property together with a visit to Malta.

conditions

Malta Retirement Scheme

Introduced in September 2012

Ideal for mature adults with an EU passport

considering retiring or taking up residence overseas.

15% tax rate on income remitted to Malta

benefits


€7,500 minimum tax paid, plus €500 per dependent

Requires purchase of a property with a minimum value of Є250,000 if in Gozo and

€275,000 in Malta, or an annual rental of €8,750 and €9,600 respectively

Applicant must be an EU national, EEA or Swiss national.

Applicant must reside in Malta for at least 90 days a year, averaged over a 5 year period.

Applicant may not spend more than 183 days in any other single jurisdiction

Standard application processing fee of €2,500

conditions


Applicants must be in receipt of a pension as supported by documentary evidence,

all of which is received in Malta and constitutes at least 75% of the beneficiary’s

chargeable income.

Applicant must be in possession of sickness insurance in respect of all risks across

the whole of the EU normally covered for Maltese nationals, for himself and his

dependants

conditions

Ordinary Residence

Available to both EU and non-EU nationals

Local income tax rates in increments up to 35% apply

EU nationals need to show they are self-sufficient (with a capital of either

€14,000 or a monthly income of at least €400. Alternatively they require employment

in Malta, or setting up of a business venture.

Non-EU nationals need to either obtain an employment license (granted on satisfying a

number of criteria) or setting up of a business venture, with a minimum investment of

€100,000.

conditions

Thank You!www.franksalt.com.mt | [email protected]

Documents

Malta – Residency and Investment options Stanley Bonello | October 2014