Residing Schemes for Third Country Nationals
Integrating markets worldwide
Malta: We mean Business
- Rich culture and history dating back 7,000 years
- Mild climate which makes it pleasant to live in all year round
- Low crime rate, thus making it a relatively safe place to live in
- English is an official language with Italian and French being widely spoken
- Moderate cost of living
- Advantageous tax rates
- Excellent telecommunications
- Politically and economically stable
- Has been voted as one of the best places to retire on Earth!
Further information in relation to Malta Residence.
- Double Taxation Relief: Malta residents are afforded protection by double taxation agreements, which ensure that tax is never paid twice on the same income in different countries.
- Inheritance and Transfer Tax: No death tax or duty is payable in Malta. However, duty on documents and transfers is payable by the heirs of the deceased; the purchaser of real estate or company shares in Malta.
- Purchase of Real Estate: Non-EU residents may freely purchase one property in Malta, subject to obtaining an AIP permit. They can purchase as many properties as they desire in a Special Designated Area.
- Education: Malta offers different types of schools, namely state schools, private schools and Church schools. Since Malta is a bilingual country, both English and Maltese are spoken in the classroom and outside.
- Healthcare: Malta has one main public hospital offering the full range of hospital services, and a number of other private hospitals and clinics.
- Income Tax: Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on income and capital gains arising in Malta, and on income arising outside Malta which is received in Malta.
Residency Option 1:
Single-permit Scheme: The Employment Licence
Identity Malta accepts applications for single-work permits, granting Third-Country Nationals the authorization to reside and take up employment in Malta.
Applications for a work/residence permit have to be endorsed by the employer concerned and the permit would cease to apply if the applicant would no longer remain in employment.
Individuals from outside the EU/EEA/Switzerland who submit a Single Permit application are subject to labour market considerations by the Employment and Training Corporation in Malta, also known as the ETC.
Single permit applications are assessed by a number of stakeholders, mainly by the Police Immigration Office and the Employment and Training Corporation.
There are a number of forms and documents which need to be filled in and submitted to the Identity Malta office in person, together with a payment of €280.50.
This scheme needs to be renewed every year based on the person’s employment status.
Residency Option 2:
Malta Residence & Visa Programme
The Malta Residence and Visa Programme Regulations, by virtue of Legal Notice 189 of 2017, offers third country nationals the opportunity to reside, settle and stay INDEFINITELY in Malta, as well as travel within the Schengen area without the need for applying for a visa. The application process takes around 5 months and the applicants need to meet the following conditions:
An administration fee of €5,500, which is not refundable must be paid on submission of the application.
Once it is established that the beneficiary qualifies for such status, he is to pay a contribution of €30,000 (less the €5,500 non-refundable fee that was paid on application). However, if this is paid by grandparents of main applicant or spouse, this can be an additional €5,000.
The applicant must also present a title to a qualifying property purchased for a consideration of €270,000 if situated in Gozo or the south of Malta or €320,000 if situated elsewhere in Malta. Alternatively a “leased” property also qualifies if it is subject to a rent of not less than €10,000 if situated in Gozo or the south of Malta or €12,000 per annum if the property is situated elsewhere in Malta. Property can already be owned prior to application.
The applicant also needs to make a qualifying investment in the form determined by Identity Malta holding an initial value of €250,000. The Investment needs to be retained for a minimum period of five years.
The applicant also needs to have an annual income of €100,000 or is in possession of €500,000 capital.
Residency Option 3:
Acquiring Maltese Citizenship By Investment: Malta Individual Investor Programme
The Individual Investor Programme of the Republic of Malta (IIP), by virtue of Legal Notice 47 of 2014, allows for the granting of citizenship by a certificate of naturalisation to individuals and their families who contribute to the economic and social development of Malta. Subject to a stringent vetting and diligence process, including thorough background checks, the applicants and their dependents are granted citizenship in exchange for such contribution.
To qualify for citizenship, the main applicant must be at least 18 years of age, provide proof of having been a resident of Malta for a period of 12 months preceding the issuing of a certificate of naturalisation and meet the following investment requirements:
- The acquisition of real estate with a minimum value of EUR 350,000 to be held for at least 5 years or lease a residential immovable property in Malta for a period of 5 years, at an annual rent of at least EUR 16,000;
- An investment in stocks, bonds or special purpose vehicles to be identified by Identity Malta, for a minimum value of EUR 150,000 to be held for a minimum period of 5 years;
- Make a contribution as per below;
|Each Dependent Child aged 0-17||€25,000|
|Each Dependent Child aged 18-26||€50,000|
|Each Dependent aged 55 and above||€50,000|
|Due Diligence Fees|
|Each Dependent Child aged 0-17||€3,000|
|Each Dependent Child aged 18-26||€5,000|
|Each Dependent aged 55 and above||€5,000|
Other processing and due diligence fees apply on a case by case basis.
Applicants must have a Global Health Insurance coverage for at least EUR 50,000 for the main applicant and each of the dependants and must give proof that they can maintain the same for an indefinite period.
Taxation in Malta
A Maltese company is subject to tax on its profits at the rate of 35%. When the company pays a dividend to its shareholder, no withholding tax or further tax is due on the dividend since Malta operates the full imputation system. The tax refund system is applicable upon a distribution of profits.
The shareholders of a Maltese company may claim a refund of part of the tax, and in some cases all of the tax, paid at corporate level out of profits which are not derived from immovable property situated in Malta.
The extent of the refund depends on the nature and source of profits. The law provides for 4 types of refunds depending on the nature of the profits:
- 6/7ths refund: refund of 30% of 35% tax producing a tax liability of 5% TYPICALLY DUE ON TRADING PROFITS;
- 5/7ths refund: refund of 25% of 35% due in respect of profits earned on passive interest & royalties, thus REDUCING THE TAX LIABILITY TO 10%;
- 2/3rds refund: refund claimed where the company has claimed double taxation relief;
- 100% refund due where the profits derive from a Participating Holding (profits received from equity shares held by a Maltese company in a foreign company), thus REDUCING THE TAX LIABILITY TO 0%;
Charles Scerri & Associates: A One-stop Shop
Charles Scerri & Associates is an established multi-disciplinary audit firm based in Malta providing accounting, financial advisory, audit and assurance and corporate services.
Mr Scerri has been in practice since 1990 and has specialized in taxation and audit services. The firm has been set up since 1995 and has grown to become a medium size audit firm servicing a wide range of local and foreign companies spanning in multiple industries.
Charles Scerri & Associates brings world class capabilities to its clients, through its membership in IAPA International, having more than 240 offices in 80 jurisdictions.
We take pride in the clients’ success and try to combine professional knowledge, integrity and entrepreneurial approach to their needs. This enables us to provide tailor made solutions to individual business needs, through our professional and qualified staff.
The services offered by the firm include:
- Standard services of bookkeeping, accounting, secretarial, payroll, taxation and audit
- Business valuations
- Business plans and projections
- Financial feasibility studies
- Internal audit
- Systems’ audit and review
- Project monitoring
- Tax and financial consultancy
- Residency application
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