Guidelines for
Permanent Residency
in Malta
Summary :
1.   Malta advantages
2.   Background
3.   Overview and advantages
4...
MALTA
          ADVANTAGES
MALTA
PERMANENT RESIDENCY

· Flat 15% tax rate on income
remitted to Malta

· Minimum tax €3,45...
BACKGROUND
Malta, a small island (just 16.5 x 8.7 miles) is
situated some 56 miles from Sicily and 186 miles
from North Af...
OVERVIEW AND
             ADVANTAGES
People of any nationality are eligible for Permanent Residence Permits. There are fiv...
REQUIREMENTS
               TO OBTAIN
              A MALTA PRP
The requirements to obtain a Malta Permanent Resident Perm...
CONTINUING
   REQUIREMENTS FOR
    PERMIT HOLDERS
The Permanent Resident must have a bank account in Malta into which acco...
TAXATION
Income taxes – once the permit is issued and the permit holder has registered with the Inland Revenue in
Malta, t...
TIME TO PROCESS
  THE APPLICATION
The processing of applications for permanent
residence normally takes around 12 weeks fr...
COSTS
1. Minimum one off fees for residency : EU 10,000 (2)
2. Minimum revenu to remit on Maltese bank account :
   EU 23,...
Advent UK team


                                        Patricia
                                      Goodenough
       ...
Contacts
            ADVENT UK LTD
Suite 8, 28 Old Brompton Road, LONDON SW7 3SS
    Tel +44207 801 3080 Fax +44207 691 79...
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Advent Uk Permanent Residency In Malta 2009

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Permanent Residency In Malta
ADVENT UK
www.advent-uk.com

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Advent Uk Permanent Residency In Malta 2009

  1. 1. Guidelines for Permanent Residency in Malta Summary : 1. Malta advantages 2. Background 3. Overview and advantages 4. Requirements to obtain a PRP 5. Continuing requirements for permit holders 6. Taxation 7. Time to process the application 8. Advent UK Team 9. Contacts www.advent-uk.com
  2. 2. MALTA ADVANTAGES MALTA PERMANENT RESIDENCY · Flat 15% tax rate on income remitted to Malta · Minimum tax €3,450 per annum. FACTSHEET · No tax on other worldwide income. · No requirement to live in Malta www.advent-uk.com
  3. 3. BACKGROUND Malta, a small island (just 16.5 x 8.7 miles) is situated some 56 miles from Sicily and 186 miles from North Africa in the Central Mediterranean. It became independent in 1964 but retains strong links with the UK. The principal business language is English and the legal system although of Roman Law origin, is a hybrid because of the strong elements of common law – company and commercial law tends to be similar to that in the UK. Malta is a stable parliamentary democracy. This info sheet is intended to be a short guide outlining the procedures and benefits of obtaining a Permanent Residence Permit in Malta. It is not intended to be definitive and comprehensive. www.advent-uk.com
  4. 4. OVERVIEW AND ADVANTAGES People of any nationality are eligible for Permanent Residence Permits. There are five main advantages to establishing residency in Malta. 1. Tax – this is levied at a flat rate of 15% on income brought into Malta and is subject to a minimum payment of €4,150 per annum. Income earned in other countries and not remitted to Malta is not taxed in any way. 2. EU – Malta is in the EU and, following some minor amendments, the permanent resident scheme is not under threat. Malta has also entered into double taxation treaties with around 30 other countries making residence a very attractive solution for tax exiles. 3. Language – Malta is bilingual (Maltese and English) and all official documentation is written in English; laws are written in English (and also in Maltese). Commercial and business relationships are also generally speaking carried out in English. 4. Lifestyle – The Mediterranean climate is a particular attraction, there is a good selection of good residential property for rent or purchase. As a tourist destination there is a selection of restaurants and other entertainment. There is a very low crime rate. 5. Communications and banking – Malta has modern telecommunications and direct air connections to main business destinations are good. The postal service is also efficient. With regard to banking HSBC is represented along with a number of local and other banks.
  5. 5. REQUIREMENTS TO OBTAIN A MALTA PRP The requirements to obtain a Malta Permanent Resident Permit (PRP) are not onerous. · Applicants need to show EITHER nett worth of c. €349,000 OR an annual income of €23,000). · They also need to show they are of good character (this will normally involve obtaining a police good conduct certificate and professional references). · Once the permit is issued, applicants have up to one year to take up residence. On doing so, they must purchase or rent a suitable property. (Minima are purchase price of c. €70,000 for a flat and €117,000 for a house or €4,150 per annum rent). · There is no requirement for permanent resident holders to spend any particular amount of time in Malta each year. It is therefore not uncommon for permanent resident holders to rent a property at the minimum rent payable and to rarely, if ever, come to Malta.
  6. 6. CONTINUING REQUIREMENTS FOR PERMIT HOLDERS The Permanent Resident must have a bank account in Malta into which account he must deposit every year the sum of €13,950 plus €2,300 for each dependent although the tax is calculated “as if” €23,000 had been remitted (i.e. the tax due is 15% of €23,000 i.e. €3,450). The Permanent Resident can freely use this money for any purpose whatsoever including outside Malta. A Permanent Resident cannot work in Malta – or more accurately cannot work within the Maltese economy. Specifically, the Permanent Resident cannot be employed by a Maltese person or Maltese registered company and cannot offer freelance services to persons or companies in Malta. However a Permanent Resident may use Malta as a base to work from, provided that he does not offer his services within Malta. The permit is subject to annual renewal although this in effect mean that as long as you (a) submit your tax return, (b) pay taxes due and (c) confirm that you maintain a residence this is a formality and once granted, a permit will not be revoked unless the Resident breaks its conditions. At the end of the first year of residence and subsequently at the end of each year, individuals are required to complete an Annual Declaration form (which we can arrange if desired) to confirm that the conditions attached to the permit have been fulfilled.
  7. 7. TAXATION Income taxes – once the permit is issued and the permit holder has registered with the Inland Revenue in Malta, the Maltese tax authorities will certify that for Maltese taxation purposes, the permit holder is resident in Malta. This can be very useful where permit holders have residential property in other countries, and need to demonstrate that they are resident outside that jurisdiction. Capital taxes – Accumulated capital and income may be taken back out of Malta with no restrictions. If a Permanent Resident sells his Maltese residence this is tax free as long as the property has been held for three years. If a property is sold within 3 years the profit made from the sale is taxed as a Capital Gain; the rate for Capital Gains Tax is 35% at present. Inheritance taxes – no death duty/inheritance tax is payable in Malta except for 5% stamp-duty on the transfer of immovable property situated in Malta. INHERITANCE LAWS In matters of inheritance, Malta is a Roman Law jurisdiction and unless a will is made, estates pass automatically to children. We therefore strongly recommend that clients purchasing property in Malta or holding assets there, make a will. We can arrange this if required. OTHERS Household goods etc may be imported into Malta free of duty and there is also a concession whereby the permit holder’s car may be imported at a very reduced rate of tax into Malta provided he has owned it for 6 months prior to the permit being granted.
  8. 8. TIME TO PROCESS THE APPLICATION The processing of applications for permanent residence normally takes around 12 weeks from the time that all documents are submitted to relevant department. Please contact us for a complete list of requirements, application forms and further information on meeting the residential requirements etc. If you are engaged in business you will also need to consider a suitable structure for ensuring that you comply with Maltese “remittance requirements”.
  9. 9. COSTS 1. Minimum one off fees for residency : EU 10,000 (2) 2. Minimum revenu to remit on Maltese bank account : EU 23,000 (1) 3. Minimum annual rent of EUR 4,150 (1) per year. 4. Minimum tax of EUR 3,450 (1) 5. Annual renewal fees : EU 5000 per year (2) ANNUAL CALCULATION Minimum income on maltese bank A/C 23000 Government Tax - 3450 Minimum Rent - 4150 Advent UK renewal fees - 5000 YOUR REMAINING FUNDS 10400 (1) Note / This may fluctuate according to exchange rate maltese £ to Euros (2) Note / Price for european citizens, other nationalities, please contact us.
  10. 10. Advent UK team Patricia Goodenough President Ian Leapingwell Rupert Potier Joel Barlier Pierre Fourès Michel Lubac Property Business Business Director Project Marketing Projects Development Development Finance Director France Consultant Director Director
  11. 11. Contacts ADVENT UK LTD Suite 8, 28 Old Brompton Road, LONDON SW7 3SS Tel +44207 801 3080 Fax +44207 691 7969 Bureau d'information France: 15 Rue Clément Bayard, 92300 Levallois, PARIS Tel +331 47 48 91 97 Fax +331 47 48 02 22 Representation office Russia: State Research Institute Test 56B Ligovsky Prospect, 191040 ST PETERSBURG Tel +7812 712 0176 www.advent-uk.com Building Excellence in Business
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