The Maltese Government has recently launched the Global Residence Programme, a residence scheme which enables non-EU, non-EEA and non-Swiss Nationals to benefit from favourable tax incentives in the event that they are seeking an alternative residence base in the Maltese Islands. The objective of the Maltese Government is to attract foreign investment to Malta by granting a tax rate of 15% on the beneficiaries’ income generated outside Malta and the possibility to claim relief of double taxation.

All foreign source income (with the exception of foreign capital gains) in Malta is subject to Malta tax. Thus, beneficiaries of this initiative are taxable at 15% on foreign source income. For an individual to benefit from such a scheme, a number of requirements must be satisfied.

Firstly, the individual must be a “third country national”, meaning a person who is not an EU, EEA or Swiss national. Moreover, the beneficiary must not be a “long term resident”, that is why he is not allowed to spend more than 183 days in a calendar year in another jurisdiction.

The minimum value of property to be acquired is also a prerequisite. Property must cost at least €275,000 in Malta and €220,000 in Gozo or in the southern area of Malta. In case of leased property, the rent must add up to at least €9,600 per annum in Malta, or €8,750 per annum if in Gozo or in the southern area of Malta.

Furthermore, the applicant (who must be fluent in either Maltese or English) must be in receipt of a regular income sufficient to maintain himself and his dependents (if any, including brothers, sisters and direct relatives). The applicant must also purchase an all-risks medical insurance policy.

A non-refundable application fee of €6,000 (for properties in Malta) and €5,500 (for properties in Gozo or the southern area of Malta) is required.