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Permanent Resident Scheme Rules Update

The new residence scheme entitled The Global Residence Programme is being launched by the Government. The legal notice will be issued by the end of this month.

These are the highlights of the scheme:

  • it addresses Non-EU, Non-EEA and non-Swiss nationals only;
  • the bond under the HNWI scheme will no longer be required;
  • the minimum tax shall be €15,000 and unlike the present HNWI, this includes dependents (HNWI €25,000 + €5,000 for each dependent);
  • the definition of dependents has been widened to include dependent brothers, sisters and direct relatives in ascending line order provided that the Director of Inland Revenue is satisfied that these are dependents of the beneficiary of the programme;
  • the children's age limit has been increased to 25 years from 21 years;
  • carers and butlers as well as other employees of the beneficiary are included provided that they have been in employment for the preceding two years;
  • present HNWI will be given an opportunity to be included in this programme;
  • property purchase minimum requirements:
    - property in Malta (excluding the South) - €270,000
    - property in Gozo and in the south of Malta - €220,000
  • rental annual minimum requirements:
    - property in Malta (excluding the South) - €9,600
    - property in Gozo and in the south of Malta - €8,750
  • the use of Authorised Registered Mandatory is still required to submit the application;
  • all-risks health insurance covering Malta is required for the applicant and his dependents;
  • the renewal of the Uniform Residence Permit shall only be given on condition that the applicant and dependents not only satisfy the minimum conditions for the past year but also satisfy the conditions for the forthcoming period for which the Uniform Residence Permit is given including the payment of minimum tax;
  • flat rate of tax on income remitted to Malta will be 15% and income arising in Malta will be taxed at a flat rate of 35%;
  • the immovable property declared as residence by the applicant and his dependents cannot be used by any other person and cannot be rented out;
  • the applicant may not be resident for more than 183 days in any other jurisdiction;
  • application fee:
    - at application stage - €4,000;
    - at date of taking up residence - €2,000*
    *Persons taking up residence in Gozo or in the South of Malta can benefit from a further reduction of €500 from the latter €2,000.

Please note that these are only highlights mentioned in the launch and we will update the actual conditions and requirements when the legal notice is issued.
For more information, kindly contact:

Neville Cutajar - Managing Partner: This email address is being protected from spambots. You need JavaScript enabled to view it.