Malta launches new residence scheme for foreigners

Department of Information, Malta

Department of Information, Malta

The Government of Malta has launched the Global Residence Programme, a new residence programme for foreigners.

This programme is intended to replace the High Net Worth Individuals (HNWI) Rules launched in September 2011.

The Global Residence Programme shall reduce the minimum value of immovable property bought in Malta by foreigners to €275,000 (from €400,000).  Moreover, when the immovable property is in the south of Malta or in Gozo, the minimum value can be €220,000. With respect to the rental of immovable property, the minimum threshold has been lowered to a minimum annual rent of €9,600 in Malta and €8,750 in Gozo or the South of Malta (from €20,000 annually).

The requirement of third-country nationals to place a €500,000 bond with the Government (and an additional €150,000 per dependant) has also been removed.

The minimum tax to be paid in advance has been reduced from €25,000 plus €5,000 per dependant per year to a minimum of €15,000 on income derived in Malta, with further income charged at 15%.

Foreign residents under this programme, including their dependants, have to be covered by health insurance and will not be entitled to free state health services.

A legal notice implementing this provisions is expected by the end of June 2013.