Malta Permanent Residence Scheme
This attractive scheme which granted high net worth individuals a permanent resident status in Malta was suspended in December of 2010. It attracted retirees who looked for a jurisdiction which is tax friendly, enjoys a high standard of living, provides a safe environment and enjoys a warm climate. Under this scheme, individuals who wished to take up residence in Malta were granted a Permanent Residence Permit (PRP) under the Malta’s immigration law.
A consultation process is underway to replace the above scheme with a number of new schemes aimed at different nationalities and specific sectors, mainly;
- The High Net Worth Individual Scheme, which will specifically apply to EU, Swiss and EEA (European Economic Area) citizens
- Scheme applicable to non-EU nationals providing them with freedom of movement and EU residence status
- The Global Mobile Permanent Scheme, which will apply to non-EU citizens for four years and is non-renewable. It entitles foreigners working in North Africa on a three- year contract to bring their families to Malta.
- A scheme giving Schengen Area benefits
- A scheme that will incentivise artists, singers and professionals, both EU and Non-EU citizens.
Ordinary Residence Scheme
Ordinary Residence is another attractive scheme for those individuals who wish to transfer their tax residence to lower tax jurisdictions such as Malta.
Unlike, the old permanent residence scheme, ordinary residence is intended for persons wishing to take up residence in Malta and physically live in Malta and possibly obtaining a work permit to enable them to work in Malta.
Benefits and Conditions of the scheme
- Ordinary resident individuals are allowed to take employment or do business in Malta
- There is a minimum stay requirement of 6 months per calendar year
- There is no minimum tax liability
- Individuals who are tax resident in Malta under such scheme are subject to tax only on income received in Malta and foreign income remitted and kept in Malta
- Taxable income is subject to the normal progressive tax rates applicable to resident individuals
- There are no minimum investment requirements
- There are no inheritance or wealth taxes
Source: Courtesy M.Meilak & Associates