High Net Worth Individuals
15% Income Tax Rate
(Replaces Permanent Residency Scheme)
For all High Net Worth Individuals (HNWI’s) – regardless of country of origin – becoming an ordinary resident of Malta can result in receiving generous tax treatment and Special Tax Status in Malta:
- 15% tax on income arising outside of and received in Malta
- 35% tax on income and capital gains realised in Malta
- 0% tax on income arising outside and not received in Malta
- 0% tax on capital gains arising outside of Malta – event if received in Malta
In addition, Malta has 0% wealth and 0% inheritance taxes.
Double Taxation Relief
HNWIs also enjoy relief of double taxation on income arising outside of and received in Malta, in the form of unilateral relief under the Malta Income Tax Act or under the relevant double taxation treaty – Malta is currently a party to over 60 double taxation treaties and growing.
Once double taxation relief is requested an annual tax payment must be made of at least:
- For EU / EEA / Swiss nationals – €20,000 plus an additional €2,500 per dependant
- For 3rd country nationals – €25,000 plus an additional €5,000 per dependant
Other qualifying conditions
Aside from obtaining health care; having sufficient income to maintain oneself and any dependents; not being or planning to be domiciled in Malta within 5 years of application for the HNWI special status; as well as being a fit and proper, a HNWI must maintain a qualifying property holding, meaning owning property of at least €400,000 or leased for not less than €20,000 per year.
3rd Country Nationals – Additional Requirements 3rd country nationals must also satisfy additional rules under the Special Tax Status scheme:
- A €0.35 cent tax on every euro of chargeable income over €25,000
- An entry visa – requiring periodical renewal; and / or
- Enter into a qualifying contract with the Government of Malta
- Fluent in English or Maltese