FFF-Legal

The Maltese Finance Ministry has launched new High Net Worth Individuals (HNWIs) Schemes to replace the Maltese Residents Scheme that was suspended on the 24th December 2010 as previously announced on our website. One HNWIs scheme is aimed at nationals of the EU, EEA and Switzerland whereas another scheme is aimed at HNWIs who are not nationals of the EU, EEA or Switzerland. The main purpose of the HNWIs Schemes is to attract foreigners to relocate to Malta and acquire Maltese tax residence. Unlike other foreigners, qualifying HNWIs will be subject to Maltese tax at 15% on foreign income (excluding capital gains) that is received in Malta.

Resident Permit holders in possession of a certificate issued in terms of the Residents Scheme will continue to be subject to the conditions prescribed by that scheme but if they sell their property in Malta, they will forfeit their residence and  tax status and will be required to apply for residence and tax status in terms of the new HNWI Schemes.

The new HNWI Schemes entitle qualifying individuals to a special tax rate of 15% on foreign income that is remitted to Malta (subject to a minimum annual tax). The main condition is the acquisition or rental of property in Malta.  The tax rate of 15% is the same prescribed in the Residents Scheme but the minimum annual tax has been revised (see below). The property acquisition and rent thresholds have also been revised. For further detail about the HNWI Schemes please click here.

Residents Scheme certificate holders

An individual who had acquired rights under the Residents Scheme Regulations before 1 January 2011 will continue to benefit from such rights. However, residence permit holders should note that:

• Residents Scheme permit holders must be in receipt of stable and regular resources which are sufficient to maintain the permit holder and his/her dependents without recourse to the social welfare system in Malta
• The permit holder and his family must be covered by a health/medical insurance
• If the permit holder sells his Maltese property (the property that was acquired pursuant to the Residents Scheme), he will be required a property at the applicable HNWIs Scheme thresholds in order to retain his residence permit
• An individual who is currently in possession of a Residents Scheme certificate may relinquish the benefits under such scheme and apply for a tax status in terms of the new HNWI Schemes. 

Pending applications under the Residents Scheme

An individual who applied for a certificate in terms of the Residents Scheme but whose application was not processed as a result of the suspension of the scheme in December 2010 may reapply in terms of the HNWIs Schemes and will be subject to the eligibility criteria of such shemes. However, applicants will be deemed to hold a Qualifying Property Holding for the purposes of the HNWIs Schemes if they-

• purchased property before 14 September 2011 for a consideration of not less than €116,000 or
• entered into a promise of sale agreement before the 14th September 2011 to buy such property provided that the property is purchased by not later than the 31 March 2012 or
• entered into a lease agreement prior to 14 September 2011 for an amount of not less than €4150 per annum

In all cases the property must be occupied by the individual and his family (where applicable) as the primary residence worldwide.

For further information about the HNWIs Schemes and about our services, please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .