The new residence scheme for foreigners has been launched. The Global Residence Programme, as the new scheme is called, will be replacing the High Net Worth Individual Scheme. The flat tax rate of 15% on foreign sourced income received in Malta has been retained with the minimum tax liability being reduced from €25,000 plus €5,000 per dependent per annum to €15,000 per annum.
In order for the 15% rate to be applied the individual must acquire or rent immovable property in Malta. The thresholds of the properties have also been reduced to €275,000, or €220,000 if the property is purchased in the south of Malta or on the sister island of Gozo. The rental thresholds have been reduced to €9,600 per annum, or €8,750 per annum if the property is rented out in the south of Malta or in Gozo. Individuals under this programme will be considered ordinarily resident but not domiciled in Malta for tax purposes, therefore any foreign sourced income which is not received in Malta is not taxable in Malta and foreign sourced capital gains are not taxed in Malta even if received in Malta.
The bond of €500,000 which was required for third country nationals has been removed.
Further details on the new scheme will be introduced by way of legal notice by the end of this month.
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