Investment Services Expatriate
For expatriates that are employed by or provide services to Investment Services companies or Insurance companies, it is possible that they may benefit from a favourable tax basis owing to a variety of tax exemptions in place.
For the purpose of this exemption an investment services company is a company that holds an investment services licence under the Investment Services Act or is recognised by the authority to manage, administer, safe keep or provide investment advice in relation to collective investment schemes.
Likewise, for the purpose of this exemption, an insurance company is a company that is authorised under the Insurance Business Act and whose sole activities relate to insurance.
Eligibility of the Investment Services or Insurance Company Expatriate
• The applicant should have been employed by an investment services company or insurance company recognised or licensed by MFSA;
• The applicant may be of any nationality as long as he/she is not ordinarily resident nor domiciled in Malta; or
• The applicant has not been a resident of Malta for a minimum period of three years prior to the commencement of the employment and has been engaged full time in a similar position outside of Malta.
Tax benefits for the Investment Services or Insurance Expatriate and his/her family
During the first ten years of their activity of employment in Malta an investment services or insurance expatriate and on satisfying the qualifying conditions shall benefit from a tax exemption on income which relates to the following expenditure for their or their immediate family’s benefit that may be incurred by Investment Services Company or Insurance Company of which they are an employee:
• Removal costs when relocating to or from Malta;
• Accommodation expenses that have occurred in Malta;
• Travel expenses for investment service expatriates and insurance expatriates in relation to visits to and from Malta to visit family;
• Car allowance to use in Malta;
• A subvention of six hundred euro (600) per calendar month;
• Medical expenses and medical insurance; and
• School fees in respect of the children of the Investment Services Expatriate or Insurance Expatriate.
The expatriate shall also be exempt from tax with regards to fringe benefits or other extensions such as: receipt of interests, discounts, premiums or royalties.
As Malta residency specialists, we can assist and advise individuals with all residency requirements.
For more information on whether you may qualify for the tax exemption on Investment Services and Insurance Expatriates please contact us.