Malta: The Residence Programme Rules 2014

On the 8^th of July two legal notices were published amending the High Net Worth Individuals Rules. These now reflect the Global Residence Programme both in terms of tax and property value (purchase and lease), through the presentation of a new special tax status.

The new introduced amendments, the so called 'Residence Programme Rules 2014', have retrospective effect from the 1^st of July 2013. Accordingly, the recent Legal Notice states that applications for the HNWI rules shall not be received by the Commissioner after the date of publication of the Residence Programme Rules. The same Legal Notice gives individuals who have been granted a special tax status under the High Net Worth Individuals Rules, the opportunity to apply to the Commissioner to be granted a special tax status under the Residence Programme Rules.

The Property value set now reflects the thresholds established by the Global Residence Programme (available for non-EU, non-EEA and non-Swiss nationals) and is of least €275,000. The value is of €220,000 when the property is in the south of Malta or in Gozo. The previous value which was of €400,000. The rent threshold has been lowered from €20,000 to €9,600 for leases in Malta and €8,750 in Gozo or the south of Malta.

The new program establishes that the minimum tax payable is €15,000, with any further income arising outside of Malta but remitted to Malta being taxed at 15%. This was previously set at €20,000 with an additional €2,500 per dependant. The minimum tax payable shall be payable before the 30^th of April and is due in advance every year.

An Authorised Registered Mandatory registered as such with the local tax authorities and engaged by the applicant for these purposes must submit to the local tax authorities an application seeking confirmation of the special tax status. CSB Group is registered with the local tax authorities as an Authorised Registered Mandatory.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.