Hospitality is a way of life in Malta. This coupled with the fact that Malta enjoys perhaps the best type of Mediterranean climate with about 330 warm and sunny days a year, making Malta an ideal location to visit and live.
Foreigners wishing to work in Malta need to apply for a work permit issued by the Employment and Training Corporation.
Alternatively, expatriates wishing to retire or to reside in Malta, provided they do not carry out any profession, work and do not occupy an office, may apply for Ordinary residence of the High Net Worth Individuals Rules and reap the low tax benefits applicable under this residence scheme. We can also assist you to open Malta bank account for non-resident and corporate entities.
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.
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 firstname.lastname@example.org or by calling at +356 2338 1500
The Motor Vehicles Registration and Licensing Act (Cap 368) provides for exemptions or relief from the payment of registration tax on the registration of motor vehicles and, in other instances, for the use of a motor vehicle in Malta which is already registered in another country, without the need for this vehicle to be registered in Malta.
Under the aforementioned Act, the following vehicles may be used on the road without payment of the vehicle registration tax or part thereof:
1. Motor Vehicle brought temporarily into Malta
Any private motor vehicle, including a caravan or motor home, registered in another country, which satisfies all the following conditions:
- is brought temporarily into Malta for a period, consecutive or otherwise, not exceeding seven (7) months in any 12 month period;
- by a person who has his normal residence outside Malta;
- that the person does not have an identity card issued in terms of the Identity Card Act or is, under this Act, obliged to be in possession of an identity card;
- the vehicle is used for personal or business purpose.
2. Motor Vehicle brought over by a person under a works contract
Any motor vehicle registered in another country which is brought into Malta by a person who has his normal residence elsewhere and who comes to Malta under a works contract, shall be exempt for a period of 12 months from the date of the vehicle’s arrival in Malta.
3. Motor Vehicle brought over by a person pursuing their studies in Malta
Any registered private motor vehicle imported or brought temporarily into Malta for personal use by a student who has their normal residence elsewhere and who is residing in Malta for the purpose of pursuing their studies in an educational institution authorised as such by the education authorities.
4. Motor Vehicle brought over for demonstration purposes
A motor vehicle brought into Malta by a licensed motor vehicle trader as a representative sample of a particular vehicle to be displayed or used for demonstration with a view to obtaining orders for similar vehicles provided the vehicle was brought temporarily into Malta with the authorisation of the Malta Transport Authority.
5. Motor Vehicle brought over on transfer of residence
This refers to a motor vehicle which is the personal property of a private individual and is being brought permanently into Malta by the individual when s/he is transferring residence to Malta from abroad.
To qualify for relief the applicant must:
- have had his/her residence outside Malta for a continuous period of at least 24 months;
- have transferred his/her residence permanently to Malta;
- be the registered owner of the vehicle at the time of transfer;
- have had possession of and actually used the vehicle abroad for at least 24 months before the date on which he/she ceased to have his/her residence outside Malta;
- not be a student returning to Malta having attended a school, university or other educational or vocational establishment abroad for a period of less than five years or a person who had been serving in Malta’s diplomatic corps outside Malta;
- holds a valid driving licence.
The documentation to corroborate the aforesaid shall include:-
- sale/acquisition of property abroad and in Malta;
- a rent agreement covering a period of no less than one year if no property has been acquired in Malta;
- evidence of payment of income tax or social benefits abroad;
- cessation of employment abroad;
- day-to-day transaction receipts/utility bills (electricity/gas/water/telephone bills or receipts, bank statements and other day to day living expenses);
- travel records connected with trips into or out of Malta.
To qualify for relief the vehicle must:
- have been in the possession of the applicant and used by him/her for a continuous period of least 24 months prior to the vehicle’s arrival in Malta;
- be registered in applicant’s name.
The documentation to corroborate the aforesaid shall include:-
- vehicle registration certificate;
- insurance certificate;
- the sales invoice, receipt of purchase or other similar document vehicle servicing/fuelling shipping/transportation/carriage etc.
The application for exemption together with all possible documentary evidence must be presented to the competent authority before or immediately upon the arrival of the vehicle in Malta. It is advisable that the necessary clearances be achieved before the vehicle arrives in Malta.
The applicant will be informed of the final decision (approval or rejection of exemption) in writing and may appeal from such a decision within 21 days from the date of the decision
Approval of exemption
Where an application for exemption is upheld, the applicant shall immediately be notified by letter. Applicant shall apply for the vehicle’s registration at least within seven days from the vehicle’s arrival in Malta, or within seven days from receiving the letter of acceptance if the vehicle is already in Malta.
The motor vehicle may not be sold, given away, disposed of, hired out or lent following its importation or its bringing into Malta unless the vehicle registration tax to which the exemption relates is paid thereon in accordance with the provisions of the First or Second Schedule to the Motor Vehicles Registration and Licensing Act (Cap 368).