The Residence Programme 2014, Malta

The Residence Programme Malta

The Residence Programme Malta

The Residence Programme 2014 was launched on the 8th July 2014 through Legal Notice 270 of 2014 and replaces the High Net Worth Individual Rules and can be applied retrospectively from the 1st July 2013. The Residence Programme 2014 further compliments a number of Malta residence programmes and seeks to attract affluent individuals.

Any non-Maltese national who is a national of an EU Member State, EEA Member State or Switzerland is eligible to apply for the Residence Programme 2014, through an authorised mandatary, and qualify for a special tax status.

What are the conditions of the Residence Programme Malta 2014?

A number of conditions must be satisfied in order for the Residence Programme, 2014 application to be successful. These include:

The Residence Programme Rules, 2014

The Residence Programme Rules, 2014

  • The applicant of the Residence Programme, 2014 must be in possession of a valid travel document;
  • The applicant of the Residence Programme, 2014 must be able to adequately communicate in either Maltese or English;
  • The applicant of the Residence Programme, 2014 must be in possession of health insurance in respect of all risks across the whole European Union normally covered for Maltese nationals for himself/herself and his/her dependents;
  • The applicant of the Residence Programme, 2014 must be a fit and proper person. (The Malta Inland Revenue Department will carry out a due diligence exercise prior to the granting of the special tax status);
  • The applicant of the Residence Programme, 2014 should not be a permanent resident in terms of the Free movement of European Union Nationals and their Family Members Order;
  • The applicant of the Residence Programme, 2014 must not be benefitting from any other Malta residence or employment programme;
  • The applicant of the Residence Programme, 2014 must be in receipt of stable and regular resources which must be to a level that they can maintain the applicant and his/her dependents with the need of using the social assistance system in Malta.

Property Requirement for the Residence Programme Malta 2014

In addition to the above, the main applicant for the Residence Programme 2014 must hold a qualifying property. A “qualifying property holding” means a property situated in Malta purchased at a consideration of not less than €275,000 (or a property in Gozo or the south of Malta purchased at a consideration of not less than €220,000) or a property situated in Malta leased for not less than €9,600 per annum (or a property in Gozo or the south of Malta leased for not less than €8,750 per annum) and occupied by the applicant as his/her primary residence.

The “qualifying property” must not be shared with other individuals (other than his/her dependents, including spouse, parents, children and household staff).

Tax Benefits for the Residence Programme Malta 2014

All successful applicants of the Residence Programme, 2014 will be eligible for a special tax status and be eligible for a flat rate of 15%. The minimum tax payable (after deduction of double taxation relief) in respect of any year shall be €15,000.

A person qualifying under the Residence Programme, 2014 rules must not stay in any other jurisdiction for more than 183 days in any calendar year

Who are classified as dependents on the Residence Programme Malta 2014?

The legislation related to the Residence Programme, 2014 establishes the following rules with regards to whom qualifies as dependents.

  • The applicants spouse or a person whom the applicant is in a stable and durable relationship;
  • Any minor children, including adopted minor children;
  • Children under the age of 25, including adopted children who are in the care and custody of the applicant;
  • Children, including adopted children who are in the care and custody of the applicant but are unable to maintain themselves because of illness or disability;
  • Any dependent brothers, sisters and direct relatives.
What is the cost of the Residence Programme Malta 2014?

A non-refundable application fee of €6,000 (€5,500 if the applicant is settling in Gozo or the south of Malta) is payable to the Commissioner of Inland Revenue on filing the application for the Residence Programme, 2014.

Trusted and Authorised Advisors of the Residence Programme Malta 2014

An applicant must authorise an authorised registered mandatory to act on his or her behalf in respect of all applications, correspondence, submissions, filings, declarations and notifications contemplated under the Residence Programme, 2014 rules.

Papilio Services Limited is an Authorised Registered Mandatary and is fully licenced to handle and submit applications for the Residence Programme, 2014.