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High Net Worth Scheme
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The High Net Worth Scheme is designed to attract foreigners moving to Malta and ask for permanent residence. This scheme, depending on the double taxation agreements between your country of citizenship and Malta, will give the advantage to the resident to pay 15% tax on his income. All the income must arise offshore of Malta. The High Net Worth Scheme will run in parallel to the suspended Permanent Residents Scheme Regulations as amended. Holders of a valid permanent residence certificate in terms of the Residence Scheme Regulations will continue to be regulated by the same Regulations. Any individual may benefit from the High Net Value Scheme, however the conditions for a non EU citizen differs from an EU/EAA Citizens and citizens of Iceland, Lichtenstein, Norway & Switzerland.
For an applicant to qualify for such a scheme, the following main conditions are imposed. For further detailed information, the following link will directly to the full guidance issued by the Malta Inland Revenue department. http://ird.gov.mt/downloads/hnwi/hnwi_guide_scheme.pdf
EU/EAA Citizens and citizens of Iceland, Lichtenstein, Norway & Switzerland
- On Date of application the applicant holds a Qualifying Property Holding.
- In case of property purchase the minimum price of the property must be €400.000 (Property purchased after 14th September 2011).
- In case of rent, the minimum rental value must be of €20,000 yearly.
- In either case, only the applicant and his family members have their habitual residence in such property as their main place of residence.
- Health insurance policy covering himself and his dependents in respect of all risks across the whole of the EU. The policy is to be issued by a Maltese licenced company or by an international reputable health insurance company.
- The minimum tax payable for any year of assessment is of €20,000. An additional €2,500 for any extra dependant for any year of assessment. The minimum tax amounts are not refundable.
- Citizens of Malta are not eligible for the High Net Worth Scheme.
NON EU Citizens
The following main conditions are for non EU nationals. For further detailed information, the following link will directly to the full guidance issued by the Malta Inland Revenue department.
ird.gov.mt/downloads/hnwi/hnwi_guide_scheme.pdf
- On Date of application the applicant holds a Qualifying Property Holding.
- In case of property purchase the minimum price of the property must be €400.000 (Property purchased after 14th September 2011).
- In case of rent, the minimum rental value must be of €20,000 yearly.
- In either case, only the applicant and his family members have their habitual residence in such property as their main place of residence.
- Health insurance policy covering himself and his dependents in respect of all risks across the whole of the EU. The policy is to be issued by a Maltese licenced company or by an international reputable health insurance company.
- The minimum tax payable for any year of assessment is of €20,000. An additional €2,500 for any extra dependant for any year of assessment. The minimum tax amounts are not refundable.
It is important to note that individuals who are not nationals of the EU, Iceland, Norway, Liechtenstein or Switzerland have two options with regard to their entry requirements and stay in Malta:
Option 1
The applicant may apply and benefit under the High Net Worth Individuals Rules without acquiring any special rights to enter and reside freely in Malta. Such individual would need to apply for a visa to enter and stay in Malta (in accordance with the Immigration Act) since a special tax status granted by the High Net Worth Individuals Rules do not grant the individual a right to stay and reside in Malta. Therefore for a beneficiary to be able to prolong his stay in Malta he / she would need to regularly renew his / her visa. In such cases the applicant need not enter into a qualifying contract to benefit from the High Net Worth Individuals Rules; or
Option 2
The applicant may apply and benefit under the High Net Worth Individuals Rules and apply for special rights of residence and stay by entering into “The Qualifying Contract”.
The Qualifying Contract:
A qualifying contract is an agreement that is entered into between the Government of Malta and the applicant wherein the applicant delivers to the Government of Malta a sum of €500,000 and €150,000 for every dependent (“the Bond”) which the Government of Malta holds by title of gratuitous voluntary deposit. The Bond will be restored to the applicant if such applicant declares and proves to the Government of Malta that he / she has renounced to the special tax status granted under High Net Worth Individuals Rules, prior to the expiration of four years from the date of the qualifying contract.
If the applicant either:
- intends to become a long-term resident (see below) prior to the expiration of four years from the date on which he has applied for special tax status in terms of the High Net Worth Individuals Rules, or
- becomes a long-term resident (see below) prior to the expiration of four years from the date on which he has applied for special tax status in terms of the High Net Worth Individuals Rules, he / she will forfeit all the rights over the Bond.
In the case where an applicant is already a long-term resident, the qualifying contract will specify that the Bond amounting to the whole €500,000 (and €150,000 for every dependent who is also a long-term resident) is immediately forfeited upon the applicant becoming a party to such qualifying contract.
Source
All the above information is an extract from Malta's Inland Revenue Department.
For further information click here to visit the official Inland Revenue Department High Net Worth Individual Scheme Webpage.
Downloads
Guidance Notes on High Net Worth Individuals Rules
Guidance Notes on the amendments to the Resident Scheme Regulations
Application Form for EU Nationals
Authorised Registered Mandatories
The above file is in Acrobat pdf format. Click here to download the pdf reader for free.
Relocate Malta is neither a tax consultancy body nor an authorised Registered Mandatory for the Malta Retirement Programme. For further information kindly contact your preferred Registered Mandatory.
The High Net Worth Scheme is designed to attract foreigners moving to Malta and ask for permanent residence. This scheme, depending on the double taxation agreements between your country of citizenship and Malta, will give the advantage to the resident to pay 15% tax on his income. All the income must arise offshore of Malta. The High Net Worth Scheme will run in parallel to the suspended Permanent Residents Scheme Regulations as amended. Holders of a valid permanent residence certificate in terms of the Residence Scheme Regulations will continue to be regulated by the same Regulations. Any individual may benefit from the High Net Value Scheme, however the conditions for a non EU citizen differs from an EU/EAA Citizens and citizens of Iceland, Lichtenstein, Norway & Switzerland.For an applicant to qualify for such a scheme, the following main conditions are imposed. For further detailed information, the following link will directly to the full guidance issued by the Malta Inland Revenue department. http://ird.gov.mt/downloads/hnwi/hnwi_guide_scheme.pdf
EU/EAA Citizens and citizens of Iceland, Lichtenstein, Norway & Switzerland
- On Date of application the applicant holds a Qualifying Property Holding.
- In case of property purchase the minimum price of the property must be €400.000 (Property purchased after 14th September 2011).
- In case of rent, the minimum rental value must be of €20,000 yearly.
- In either case, only the applicant and his family members have their habitual residence in such property as their main place of residence.
- Health insurance policy covering himself and his dependents in respect of all risks across the whole of the EU. The policy is to be issued by a Maltese licenced company or by an international reputable health insurance company.
- The minimum tax payable for any year of assessment is of €20,000. An additional €2,500 for any extra dependant for any year of assessment. The minimum tax amounts are not refundable.
- Citizens of Malta are not eligible for the High Net Worth Scheme.
NON EU Citizens
The following main conditions are for non EU nationals. For further detailed information, the following link will directly to the full guidance issued by the Malta Inland Revenue department.
ird.gov.mt/downloads/hnwi/hnwi_guide_scheme.pdf
- On Date of application the applicant holds a Qualifying Property Holding.
- In case of property purchase the minimum price of the property must be €400.000 (Property purchased after 14th September 2011).
- In case of rent, the minimum rental value must be of €20,000 yearly.
- In either case, only the applicant and his family members have their habitual residence in such property as their main place of residence.
- Health insurance policy covering himself and his dependents in respect of all risks across the whole of the EU. The policy is to be issued by a Maltese licenced company or by an international reputable health insurance company.
- The minimum tax payable for any year of assessment is of €20,000. An additional €2,500 for any extra dependant for any year of assessment. The minimum tax amounts are not refundable.
It is important to note that individuals who are not nationals of the EU, Iceland, Norway, Liechtenstein or Switzerland have two options with regard to their entry requirements and stay in Malta:
Option 1
The applicant may apply and benefit under the High Net Worth Individuals Rules without acquiring any special rights to enter and reside freely in Malta. Such individual would need to apply for a visa to enter and stay in Malta (in accordance with the Immigration Act) since a special tax status granted by the High Net Worth Individuals Rules do not grant the individual a right to stay and reside in Malta. Therefore for a beneficiary to be able to prolong his stay in Malta he / she would need to regularly renew his / her visa. In such cases the applicant need not enter into a qualifying contract to benefit from the High Net Worth Individuals Rules; or
Option 2
The applicant may apply and benefit under the High Net Worth Individuals Rules and apply for special rights of residence and stay by entering into “The Qualifying Contract”.
The Qualifying Contract:
A qualifying contract is an agreement that is entered into between the Government of Malta and the applicant wherein the applicant delivers to the Government of Malta a sum of €500,000 and €150,000 for every dependent (“the Bond”) which the Government of Malta holds by title of gratuitous voluntary deposit. The Bond will be restored to the applicant if such applicant declares and proves to the Government of Malta that he / she has renounced to the special tax status granted under High Net Worth Individuals Rules, prior to the expiration of four years from the date of the qualifying contract.
If the applicant either:
- intends to become a long-term resident (see below) prior to the expiration of four years from the date on which he has applied for special tax status in terms of the High Net Worth Individuals Rules, or
- becomes a long-term resident (see below) prior to the expiration of four years from the date on which he has applied for special tax status in terms of the High Net Worth Individuals Rules, he / she will forfeit all the rights over the Bond.
In the case where an applicant is already a long-term resident, the qualifying contract will specify that the Bond amounting to the whole €500,000 (and €150,000 for every dependent who is also a long-term resident) is immediately forfeited upon the applicant becoming a party to such qualifying contract.
Source
All the above information is an extract from Malta's Inland Revenue Department.
For further information click here to visit the official Inland Revenue Department High Net Worth Individual Scheme Webpage.
Downloads
Guidance Notes on High Net Worth Individuals Rules
Guidance Notes on the amendments to the Resident Scheme Regulations
Application Form for EU Nationals
Authorised Registered Mandatories
The above file is in Acrobat pdf format. Click here to download the pdf reader for free.
Relocate Malta is neither a tax consultancy body nor an authorised Registered Mandatory for the Malta Retirement Programme. For further information kindly contact your preferred Registered Mandatory.
