High Net Worth Individuals Rules

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The Ministry of Finance has recently issued a number of guidance notes for the application of a High Net Worth Individuals Rules (HNWIR). These Rules, apply as from the 14 September 2011, and can be broadly divided into two (2) tranches:

HNWIR – EU/EEA/Swiss Nationals; and
HNWIR – Non-EU / non-EEA / non-Swiss Nationals Rules

HNWIR - EU/EEA/ Swiss Nationals

These rules apply to all EU Nationals (except Maltese nationals), Nationals of Iceland, Norway and Liechtenstein and Nationals of Switzerland. In order to the eligible, the applicant must prove, that ones owns, at of 14 September 2011, immovable property for a value of not less than EUR 400,000; or rents an immovable property in Malta for not less than EUR 20,000 annually as lessee. This tenement must be occupied by the applicant and his family members as their habitual residence. Consequently, this property may not be sub-leased.

The applicant must prove that he is in receipt of a stable and regular source of income to sufficiently maintain himself / herself and his dependants without recourse to the social assistance system in Malta. Furthermore, the applicant must also be in possession of a valid travel document, and a valid sickness insurance which covers himself and his dependants (key-plan insurance cover).

The applicant shall be assessed in accordance to the “fit and proper” suitability criteria to ascertain that he is a person of good character and good morals, never been adjudged bankrupt, has a clean police record, nor debarred from entry to a profession or occupation.

Applicants are subject to a minimum stay requirements of ninety (90) days in Malta per year. Furthermore, the applicant must not stay in any other jurisdiction for more than 183 days in a calendar year.

HNWIR – Non-EU / non-EEA / non-Swiss Nationals Rules

Non-EU / non-EEA / non-Swiss Nationals must adhere to the same criteria as EU /EEA and Swiss nationals. However, they must also, on application, commit to a financial bond of €500,000 and €150,000 per dependent. This bond shall take the form of a qualifying contract, which the Government of Malta shall hold by title of gratuitous voluntary deposit.

This bond shall be restored to the applicant, upon sufficient evidence being provided that the applicant has renounced to the special tax status, within four (4) years from the date of the qualifying contract.

Likewise Non-EU / non-EEA / non-Swiss Nationals must adhere to the minimum stay requirements of ninety (90) days in Malta, per year, and renew their visa permits periodically.

Tax Treatment

Upon a successful application of the application, the beneficiary shall be entitled to the following rate of income tax:

HNWIR – EU/EEA/Swiss Nationals – at a rate of 15% on income remitted to Malta, subject to a minimum tax rate of EUR 20,000 per annum for the applicant and EUR 2,500 per dependant;
HNWIR – Non-EU / non-EEA / non-Swiss Nationals Rules – at a rate of 15% on income remitted to Malta, subject to a minimum tax rate of EUR 25,000 per annum for the applicant and EUR 5,000 per dependant

An application for the aforesaid favourable tax treatment may only be entertained by Authorised Registered Mandatories. Contact one of our officers to initiate the application process for a High Net Worth Individuals Rules and start reaping the full benefit of a low-tax, EU jurisdiction. Simply fill in the contact box below or contact us by email on enquiries@fbsmalta.com or by calling at +356 2338 1500

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