Malta combines a Mediterranean lifestyle, lots of sunshine and a tax-friendly environment in a strategic location close to Europe, Africa and the Middle East, ideally suited to international business administration. The Island nation consists of 3 islands: Malta (main island), Gozo and Comino, with a total population of 420 000 inhabitants, occupying an area of 316 square kilometers. Along with Maltese, English remained (and still is) one of the country’s official languages, spoken fluently by almost the entire population.
Malta offers economic, political and social stability, which are very important key factors to investor confidence, especially in today’s world.
Part of the Schengen Zone since 21 December 2007 and an EU member state since 1 May 2004, Malta provides easy access to all European markets. Double Taxation Avoidance Agreements have been signed with around 70 countries.
- Privileged tax status, greatly enhanced by a wide network of Double Taxation Treaties with around 70 countries;
- Covers family members including spouse, minor children, unmarried adult children under the age of 27 and parents above the age of 55;
- There is no particular time required for the residency permit holder to actually live in Malta;
- Visa free travel to EU and within the 26 members of the Schengen area;
- Pleasant climate all year round;
- Safe and peaceful environment;
Legal basis for the – Malta Permanent Residence by Investment Program:
Based on the Maltese Immigration Act, Chapter 217 of the Laws of Malta and an amendment approved in August 2015, Maltese Permanent Residency by Investment can be acquired by individuals who buy or rent property in the country and are non EU, EEA or Swiss nationals. The amendment provides the framework for the enactment of L.N. 288. of 2015.
Below is a summary of the Maltese tax system applicable to residents under the Malta Permanent Residence by Investment Program:
|Summary of Malta Global Residence Tax Rules|
|Basis of Taxation||Local Source, Remittance|
|Foreign Source Income remitted to Malta Tax Rate||15%|
|Taxation on Capital Gains outside Malta||Nil|
|Tax Rate for Corporate, Investment Income and Local Personal||35%|
|Minimum tax payable (per family)||€15,000|
|Taxation for each dependent||Nil|
|Double Tax Treaty Relief||Applicable|
|Taxation per dependent||Nil|
|Tax Residence Certificate||Process available.|
Year of commencement of the program:
Year of closing of the program:
The standard VAT rate in Malta is 18%. The corporate tax rate is 35%; special tax concessions, however, apply for non-resident/non-domiciled owners.
Malta has concluded double taxation treaties with around 70 countries. A number of other agreements have been signed but are not yet in force.