A new scheme called The Global Residence Programme (for non-EU individuals) has been launched in Malta.

This new scheme will be replacing the High Net Worth Individual Scheme and applies to non-EU foreigners.  The 15% flat tax rate on foreign income which is received in Malta has been retained, but the tax liability has been reduced from €25,000, plus €5,000 per dependent, per annum to €15,000 per annum.  However, for the 15% tax rate to apply, the individual concerned must acquire or rent immovable property in Malta.  In this respect, the thresholds of properties in Malta have also been reduced to €275,000 or, if the property is purchased in the south of Malta or on the sister island, Gozo, to €220,000.  Malta rental thresholds have also been reduced to €9,600 per annum or, if the property is let out in the south of Malta or in Gozo, to €8,750.

For tax purposes, individuals under this scheme will be considered as ordinarily resident in Malta but not domiciled in Malta.  Hence, any income sourced from a country outside Malta and which is not received in Malta is not taxable in Malta.  Additionally, any capital gains sourced from a country outside Malta are not taxed in Malta even if received in Malta.  Furthermore, the bond of €500,000 which was previously required for third country nationals has been removed.

A legal notice featuring further details of the scheme will be introduced shortly.

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