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Malta Immigration & Residency – Non EU Nationals

Malta – A Schengen Participant Visa Free Travel within the EU

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Shareholders & Ultimate Beneficial Owners of a Malta Resident Company

For Malta residency under this ground, one of the following criteria must be fulfilled:

  • Fully paid up share capital of €100,000 (minimum) –  cannot be withdrawn, reduced or transferred to a third party during the first two years following the Issue of the Employment Licence
  • Capital expenditure of €100,000 (minimum) to be used by the company, i.e fixed assets –  immovable property, plant and machinery. Rental contracts do not qualify
  • Company is leading a project, formally approved by Malta Enterprise and the Employment and Training Corporation.  Applications containing a firm commitment to engage EEA/Swiss/Maltese nationals  will assist in the favourable consideration of an application
  • Status of a highly skilled innovator, with a sound business plan, committed to recruiting at least three EU/EEA nationals within eighteen months of establishment of business

Or:

  • Status of sole representative of an overseas company (sound reputation and established for at least three years abroad) wishing to open a branch in Malta.

If a director is not a shareholder, the above criteria does not need to be met, however labour market considerations will apply – Malta’s situation in respect of surpluses or shortages in the given occupation and sector, the third country national’s skill level, relevant experience and overall suitability for the position in question.

Long-Term Residence

Long-term residence status may be granted to individuals who have been legally residing in Malta for five continuous years. The term “continuous” means that such individuals must not have absented themselves from Malta for more than six consecutive months in any given year of the said five-year period and further must not have been absent from Malta for more than a total of ten months throughout this five year period.

Residency Granted by Other EU State

A third country national who has been granted long-term residence status by another Member State other than Malta, may reside in Malta, for a period exceeding three months, for the exercise of an economic activity in an employed or self-employed capacity, provided that such person is in possession of an employment licence; is pursuing studies or vocational training; or is engaged in other such activities.

Education

Temporary residence is granted for the entire period of education to students in any Private School, College, or at the University of Malta. If the student is a minor, his or her legal guardian can apply for Malta residence to accompany him or her. The accompanying individual must confirm that he or she is in receipt of stable and regular income and has a suitable place to live.

Income Tax

Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on income arising in Malta, on income arising outside Malta but received in Malta and on capital gains arising in Malta. No tax is chargeable on capital gains which arise overseas but which are remitted to Malta. Personal income tax is charged at progressive rates up to a maximum of 35 per cent.

Global Residency Program

The Global Residence Program Rules (GRP) for non EU  nationals, were recently brought into law on 30th June 2013 and substantially reduce the financial standards required by the previous residency programme

The Benefits

Persons who qualify for the GRP benefit from:[checklist]

  • No taxes on: wealth, inheritance, income not brought into Malta
  • For foreign income brought into Malta, a flat tax rate of 15%, subject to a minimum tax liability of €15,000, payable each year
  • The minimum tax covers income of that individual as well as that person’s spouse and dependents. Dependents are children up to age 25, dependent brothers,, sisters and direct relatives  in an ascending line, subject to the Malta Government being assured that they are in fact dependents
  • Employees are also permitted to come to Malta under the GRP, subject to them having been employed for 2 years.

[/checklist]

Property RequirementsMinimums  North of Malta     Gozo & South of Malta
Purchase of Immovable Property €275,000 €220,000
Rental of Property €9,600 €8,750
Minimum Tax Payable €15,000 €15,000
Non-Refundable Application Fee €6,000 €5,500
  • Income not brought into Malta is 0% taxed
  • Any other income  brought into (remitted to) Malta is subject to tax at 35%, including any bank interest in Malta and income from employment in Malta
  • No provisional tax payable during first year; thereafter provisional tax payments to be paid three times a year

Inheritance of GRP

The special tax status under GRP may now be inherited;  subject to the beneficiary continuously satisfying the GRP conditions.

Application Standards

To apply to the Global Residence Program Rules, the applicant  must:

1. Not be or become a Maltese/ EEA/ Swiss national

2. Not benefit from any other special tax status

3. Hold a qualifying residential property

4. Be in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta

5. Have a valid travel document

6. Maintain an all risk health insurance to cover the EU

7. Be fluent in either Maltese or English

8. be a fit and proper person

9. The individual must not stay in any other jurisdiction for more than 183 days in a calendar year

10. Special reporting obligations (the filing of an annual tax return) and notifications must be complied with.

Localities specified as South of Malta:

Birżebbuġia – Qrendi, Cospicua – Safi

Fgura – Santa Luċija, Għaxaq – Senglea

Gudja – Siġġiewi, Kalkara – Tarxien

Kirkop – Vittoriosa

Luqa – Xgħajra – Marsascala – Żabbar

Marsaxlokk – Żejtun

Mqabba – Żurrieq, Paola