Legal Notices published on the 8 August 2014 have introduced the Residence Programme Rules 2014 and amended the Malta Retirement Programme Rules.

The Residence Programme Rules 2014

The Residence Program Rules 2014 (the “RPR”) were introduced by virtue of Legal Notice 270 of 2014 and are effective from 1st July 2013. The RPR effectively replace the High Net Worth Individuals– EU/EEA/Swiss Nationals Rules due to the fact that they apply to individuals that are EU, EEA or Swiss nationals (and who are not Maltese nationals) that satisfy the conditions included therein. Similar to the position under the Global Residence Programme Rules (the “GRR”), any foreign income derived by beneficiaries or their dependents and remitted to Malta is taxed at the reduced rate of 15 percent (flat rate) subject to the satisfaction of the conditions included therein.

The conditions to be satisfied under the RPR (including the conditions in relation to the qualifying property holding) are substantially in line with the conditions of the GRR. The minimum tax to be paid by each beneficiary is now also similar to the minimum amount under the GRR – with such amount now set at 15,000 Euro (after claiming double tax relief, if any) in respect of income arising outside Malta per year of assessment. The corresponding minimum amount to be paid under the High Net Worth Individuals – EU/EEA/Swiss Nationals Rules (which were previously in force) was set at 20,000 Euro per beneficiary and 2,500 Euro per dependant (if any).

The application process to be followed and the application fees to be paid are identical to those applicable under the GRR. Any individual currently benefiting from the High Net Worth – EU/EEA/Swiss Nationals Rules may request the Commissioner to grant him the special tax status under the RPR.

The amendments to the Malta Retirement Programme Rules

The Malta Retirement Programme Rules (the “MRP”) were amended by virtue of Legal Notice 269 of 2014. The MRP are now also in line with the general requirements of the GRR and the RPR, with many of the conditions under these separate programs now identical or similar.

The MRP Rules also require an individual to hold a qualifying property holding, with such conditions being broadly similar to the corresponding condition under the GRR and the RPR.

Application through the services of an Authorised Registered Mandatary

For an individual to benefit under the RPR, the MRP and the GRR an application must be submitted by an Authorised Registered Mandatary in terms of the respective regulations included in such rules. DFK Malta Tax & Consultancy Limited is registered with the Commissioner for Revenue as an Authorised Registered Mandatary and can assist individuals with their application for the benefits under the abovementioned rules. Detailed information relating to these benefits and other programs is available in the section Residence in Malta.