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February, 15 2019
February, 15 2019
Permanent Residence Scheme of Malta
The 1988 Malta Permanent Residence Scheme was designed to attract high net worth individuals to take up permanent resident status in Malta. The scheme is especially attractive to retirees, authors, intellectuals and international consultants or simply persons seeking to establish an alternative residence that suits their lifestyle and tax profile.
The Malta Permanent Residence Scheme was probably the most attractive residence scheme available to individuals seeking to transfer their tax residence overseas to more attractive jurisdictions that are warmer in climate, enjoy a high standard of living, provide a safe environment for younger and older members of the family and a provide a scheme for permanent residence that is selective, affordable and tax friendly. Malta ticks all the boxes for an attractive permanent residence jurisdiction and occupies the highest positions in respected international indexes for quality living and retirement.
Requirements of Malta's Permanent Residence
According the Requirements of Malta's Permanent Residence Scheme the financial qualifications are easy to satisfy and permanent residents are entitled to the following benefits which are, no minimum stay requirements, a low annual tax liability of a mere EUR4,230 (approx. US$4,900), no world-wide income/wealth tax - tax only paid on income remitted to and kept in Malta, no need to purchase property - only a minimum annual rent of EUR4,230, no minimum investment requirements and no Inheritance/Wealth Taxes
New Permanent Residence
Furthermore there is a New Permanent Residence Schemes that examine the new applications under the PR Scheme were accepted between 1988 and 2010 and existing PR permits remain valid subject to compliance with the current rules applicable to their Permanent Residence Permit.
New applications for permanent residence must be made under the 2011 HNWI Residence Rules that are available in two streams: one for nationals and another for non-European nationals. For more information about the HNWI Schemes refer to our pages on High Net Worth residence schemes.
Applying for residence
Moreover there are tips for a smooth Application Process that applying for residence can be a smooth process with the benefits of legal certainty and
The Maltese Islands abound in historical wealth and cultural links. Malta has a European identity and geographical location, a European time zone and enjoys a friendly atmosphere and a warm Mediterranean climate.
For these reasons and for the attractive permanent residence schemes with their associated tax advantages, foreigners are increasingly choosing Malta as their golden retirement location or as their strategic international stepping stone to the rest of the world.
Several persons have satisfied the requisites of the various Permanent Residence Schemes launched till now and have been granted an indefinite residence permit. This entitles them to remain indefinitely on the Island but precludes them from entering employment or running a business of any kind in Malta.
Physical residence in Malta is not required as persons holding a Permanent Residence Permit have freedom to come and go as they please without need of applying for Visas or extensions of stay in Malta for prolonged periods.
Under the 1988 Permanent Residence Scheme still in force today, a person applying under the said Scheme would have to meet a number of financial and property conditions.
As an all ideas and subjects there are benefits, according this subjects there benefits which are the first and important that is complete freedom of movements, also the low taxes and extensive tax based in treaty of network. Moreover include repatriation of capital and income and the freedom to rent out Maltese property. There is no death and donation duty. Another benefit is the importation of personal household possessions and the importation of cars.
Capital or Income Qualifications
Candidates applying for a residence permit under the Permanent Residence laws of Malta need to demonstrate an annual income in excess of Euro 24,000 or a total net worth exceeding Euro 350,000.
Applicants whose application has just been approved need to go on and satisfy the further requirement of renting or buying property in Malta within a year of receipt of their approval. Minimum, property values apply for outright purchases and a minimum rent of Euro 4,200 p.a. applies for rentals.
Annual Income Remitted
Applicants need to demonstrate the ability to remit to Malta the annual sum of Euro 14,000 for the main residence permit holder and a further Euro 2,400 for each dependent.
Employment/Engagement in Business
Permanent residence permit holders are not allowed to take up employment, set up shop nor do business in Malta in their personal capacity.
According the Business Section warned that already, potential buyers were already considering the alternative competing destinations. Furthermore the situation regarding present applications remains unclear. This situation is exposing the economy to a number of risks, including thousands of jobs directly related to the construction and real estate sectors, besides those that depend on the spill over from this industry. “Malta’s reputation as a serious financial services centre is also at risk – especially in a situation where the goalposts can be changed or even removed without any notification.”
The Operational Department reported that significant damage has already been done. If the government does not take responsibility and reactivate this status, the damage will be irreparable and the effects felt throughout the economy.
“The scheme not only needs to be reactivated as soon as possible, but any changes must be carried out swiftly and with full consultation with the industries directly affected.”
“We have spent the last three months in limbo – we need to restore this successful scheme as well as international confidence in our country as a serious destination and investment proposition,” concluded Mr. Casolani.
Moreover the Malta Chamber Real Estate Business Section is supported by the federation of estates agents, the Malta developers association and the designated areas.
In conclude the Malta Chamber of Commerce, Enterprise and Industry clarifies that the Permanent Residency Scheme issue is not solely related to Real Estate. This was further evidenced at the press conference held by the Malta Chamber on Monday 23rd March, where sectors across the board were represented by Mr. Gino Cutajar, Chairman of the Importers, Retailers and Distributors Economic Group, and Mr. Julian Mamo, Chairman of the Services Providers Economic Group, as well as the Malta Chamber President, Mrs Helga Ellul.
By their presence, they emphasized the fact that permanent residence scheme which was discontinued in December last year, it provides economic advantages in all areas, thus the suspension is a serious matter to detrimental a number of areas, including legal and financial services of tourism and construction and real estate to do not mention charities.
Composed by Maria Erotokritou