Malta

Key Benefits:

• Very low income tax, no capital gains tax, no inheritance tax
• Favourable double-taxation agreements with key countries
• Highly respected jurisdiction for incorporating low-tax companies
• Excellent banking centre with a presence of major international banks
• Ideal location in the centre of the Mediterranean
• Excellent access by sea and the international airport of Malta
• English-speaking environment, high standard of living

Route to Malta Citizenship:

he Malta program includes three financial requirements:

1. A contribution to the development of Malta
2. A purchase of stocks/bonds
3. A property transaction
   The combined upfront financial requirement, including applicable government charges and citizenship application fees, is just under EUR 900,000. These costs will increase slightly depending on the family size.

	Property Rental		Property Purchase
	Financial requirements	Gov. and processing fees	Financial requirements	Gov. and processing fees
Single applicant	EUR 650,000 donation EUR 150,000 stocks/bonds EUR 16,000 p.a. property rental	12-15%	EUR 650,000 donation EUR 150,000 stocks/bonds EUR 350,000 property purchase	9-12%
Married couple	EUR 675,000 donation EUR 150,000 stocks/bonds EUR 16,000 p.a. property rental	12-15%	EUR 675,000 donation EUR 150,000 stocks/bonds EUR 350,000 property purchase	9-12%

Individual Investor Program

The Malta IIP is aimed at ultra-high net worth individuals and families worldwide. It offers citizenship in a EU Member State that is stable, neutral and highly respected, an efficient application process, and the world’s strictest due diligence standards and vetting of applicants, thus ensuring only highly respectable clients will be admitted.

EU citizenship gives the right of establishment in all 28 EU countries.

Citizenship is granted to suitable individuals and families who hold resident status in Malta for a period of twelve months immediately preceding the day of issuing of the certificate of naturalization and who qualify under the very strict due diligence regime. All individuals and families applying to the Malta Individual Investor Program must make a significant contribution to the National Development and Social Fund established by the Government. The minimum contribution levels that must be met in the initial phase of the program have been set as follows:

• Contribution to National Development and Social Fund of EUR 650,000 for the main applicant
• Contribution for spouse and minor children: EUR 25,000 each
• Contribution for dependent children 18 to 26 years or dependent parents above 55 years: EUR 50,000 each

Also to note, Due Diligence fees apply, and these have been set at the following levels: For main applicant: EUR 7,500; for spouses, adult children and parents: EUR 5,000; for children between 13 and 18 years of age: EUR 3,000 each.

The applicant must commit to retain a residence in Malta for a period of at least 5 years, either through the purchase of a property, for which the minimum value must exceed EUR 350,000, or through leasing of a property, for which the minimum annual rent must exceed EUR 16,000.

In addition, an investment of EUR 150,000 in Government approved financial instruments, which must be maintained for a minimum period of 5 years is required.

Global Residence Program

Malta is also a very attractive location for private residence. Malta offers non-Maltese persons the possibility of acquiring residence status through the Global Residence Program which is aimed at persons who buy or rent property in Malta, with minimum requirements of between EUR 220,000 to EUR 275,000 purchase price or EUR 8,750 and EUR 9,600 annual rent, depending on the location. A residence permit entitles its holder to reside permanently in Malta with the freedom to come and go any time. A permanent resident can enjos a privileged tax status while at the same time benefiting from Malta’s wide network of Double Taxation Treaties. A further advantage of this status is that as long as the resident abides by the rules of the permit, the resident permit holder need not spend any particular time actually residing in Malta

Malta Residence and Visa Program

It is easy to see why Malta is a very desired location for private residence. The island nation enjoys a stable political climate and is strategically located with excellent air links. The Malta Residence and Visa Program (MRVP) offers non-Maltese persons the possibility of acquiring an EU residence card which offers visa-free travel within the Schengen Zone.

Minimum requirements:

• An investment in government bonds of EUR 250,000 to be retained for a minimum period of five years
• A non-refundable government contribution of EUR 30,000 (EUR 5,500 of which is an advance government administrative fee)
• A property purchase of EUR 320,000 (EUR 270,000 in South Malta or Gozo); or a property lease of EUR 12,000 per annum (EUR 10,000 in South Malta or Gozo)

Benefits of MRVP:

• EU residence card gives visa-free travel within Schengen area
• Right to reside indefinitely in Malta
• Five years’ permanent residence, renewable indefinitely
• Investment required only for first five years
• No residence requirement
• Taxed only on Maltese source income and remitted income
• Family members can be included

Procedures and Time Frame:

The MRVP application requirements and procedures are relatively simple and straightforward. Your application is submitted to Identity Malta, the government agency responsible for applications, with a non-refundable deposit of the contribution amount in the sum of EUR 5,500. After stringent due diligence checks, successful applicants will be requested to complete the qualifying investments and will then be issued a residence permit. Identity Malta will issue successful applicants with a Maltese Residence Certificate which will be deemed to be a permit. The certificate will be monitored annually for the first five years from its issue, and every five years thereafter.

Facts about Malta

Malta consists of a small group of islands in the central Mediterranean Sea, south of the Italian island of Sicily and well positioned as a cultural but also political stepping-stone between Europe and North Africa. Malta became independent from Britain in 1964 after being a colony for more than 200 years.. Malta has a good infrastructure. Telecommunications, postal services, banking, hospitals and health services as well as all other important public services are efficient and of a very high standard. In recent years, the Maltese government has actively sought to attract foreign capital with attractive incentives aimed at international investors and entrepreneurs. This pro-business government policy seeks to build on Malta’s many existing strengths such as its strategic location, excellent international trade relations, a highly qualified, motivated and English-speaking workforce and a good quality of life including excellent healthcare and schools.

Malta has also operated a long-standing residence program, which was recently revised and re-launched as the Global Residence Program, and has introduced a Citizenship-by-Investment option(IIP), which is led by Identity Malta on behalf of the Government under a Public Services Concession.

Malta is one of the most attractive locations in Europe for tax-advantaged private residence.

While Malta has a high standard of living, comparable to other European countries of the Mediterranean region, the cost of living is generally lower than in Europe. The taxes imposed on Permanent Residents are very low. The low tax rate, coupled with the many double taxation treaties that Malta has negotiated with other countries, makes residence in Malta a very attractive solution for high-net-worth individuals. An income tax of just 15% is levied only on income brought into Malta. There is no tax on worldwide income or assets.

Business Opportunities in Malta

In recent years the Maltese government has actively sought to attract foreign capital with attractive incentives, including generous tax breaks, aimed at international investors and entrepreneurs. During the last fifteen years, Malta has developed into a modern financial centre and today is one of the most important jurisdictions within the Southern European region. Malta is an excellent jurisdiction to establish low-taxed international trading companies and treaty-protected international holding companies. Malta also has an important shipping register and is one of world’s preferred jurisdictions for tax-free yacht registrations.

Law in Malta

Although a former British dependency, Maltese law is codified and there is no British “common law” tradition. Broadly speaking, the law is divided into two main branches, the Civil law and Criminal law, which follow different traditions.

Maltese Civil law is based on the Napoleonic Code, itself based on the older Roman Law concepts. Therefore, particularly in the older areas of civil law, especially those concerning property, contracts, obligations and so on, Maltese law is very similar to French and Italian law and reference is often made to French and Italian authors in the interpretation of Maltese law.

In the Criminal Law field however, Malta has borrowed heavily from the British system. Therefore all trials are tried by juries (except for lesser offences) and the whole system is based on the British Criminal Law set-up.

In the newer fields of law, particularly in the environmental, financial, company and fiscal legislative areas, a large number of new laws have been enacted over the past ten years and these tend to be borrowed from other countries (in particular from Britain) and adapted to Maltese requirements. Today Malta is amending its body of laws to bring it into line with the laws of the European Union for which Malta has applied for membership and is now in the process of negotiations.