The High Net Worth Individual Scheme
What is it?
If you’re looking for a way to make the most out of your capital gain and gain a residency permit in a picturesque setting then tax-friendly Malta could be your nirvana. The scheme aims to attract high net worth individuals looking to set up an alternative residency in a way that satisfies their lifestyle and offers generous tax incentives.
The scheme offers the chance for individuals to apply themselves but in addition to bring their spouse and children and any other financial dependants. One unique aspect of this scheme is there are no minimum wealth qualifications, minimum annual income or minimum annual remittance requirements, only that they have stable and regular resources.
Who can apply?
– EU nationals (excluding Malta nationals)
– Nationals of Iceland, Norway and Lichtenstein
– Swiss Nationals
– Anybody who is not an EU citizen.
In order to qualify for this scheme, the applicant must be able to prove they have an address at which to reside when they arrive in Malta. The property can either be bought with a minimum value of 275,000EUR in Malta or 220,000 in Gozo and the south region of Malta, or alternatively rented at a value of 9600EUR per year or 8750 for Gozo. This is a far cry from the original requirement of 400,000EUR for an owned property and 20,000EUR for a rented one. They must also make a minimum tax contribution to Malta of 15,000, again a marked reduction from before when it was 25,000 with an additional 5,000 per dependant.
Applicants must hold a health insurance policy which covers all possible medical risks for them and their dependants and spans the entire span of the EU. The policy can be taken from a Maltese insurance company or an external one as long as the documents proving the payment for the policy, as well as the coverage, are supplied at the time of the application.
The applicant must also prove their ‘good character’ upon supplying police conduct records, as well as a ‘Fit and Proper Test’.
Repatriation of Capital Income
Capital accrued through the sale of property and assets in Malta may be repatriated, on condition that all tax outstanding have been settled.
Low Tax Rate & Remittance Only Basis Of Tax
The scheme offers a flat rate of 15% on foreign sourced income remitted to Malta. Non-domiciled foreigners possessing a residence permit in Malta are taxable on a ‘remittance basis’ only on income and not foreign source capital remitted to Malta and on income and capital gains with origin in Malta. The scheme also offers double taxation relief.
Full Exemption From VAT/Customs Duty
When importing goods within 6 months of setting up residency in Malta.
In addition there are a variety of other tax incentives in relation to stamp duty, property sale, inheritance, estate tax and wealth tax. Malta really is a hub for
The applicant may also take up employment in Malta with no restrictions.
If this scheme seems attractive to you and you feel you meet all of the requirements, please do visit our website: www.immigrationintoeurope.com where you will be able to contact us for more information.