The Malta Residence and Visa Programme (the ‘Programme’ or ‘MRVP’) is a special tax status scheme which was introduced on the 21st March 2016 through Legal Notice 288 of 2015. It is intended for foreigners who wish to invest in Malta and is applicable to non-EU, non-EEA and non-Swiss nationals.
In order to qualify for the scheme, the Beneficiary must contribute half a million euros, specifically by purchasing or renting property, investing in Government bonds, and giving a financial contribution to Identity Malta.
In order to qualify for the scheme, the Beneficiary must hold a “Qualifying Property”, which is defined as either:
The ownership of immovable property in Malta purchased for a consideration of not less than €320,000 for a property situated in Malta, or €270,000 for a property situated in Gozo or in the south of Malta; or
The lease of an immovable property in Malta for not less than €12,000 per annum for a property situated in Malta, or €10,000 per annum for a property situated in Gozo or in the south of Malta.
The address of the property should be the place of residence for the Beneficiary for at least the first 5 years from the appointed date. The Beneficiary cannot transfer ownership of property to third parties nor is he/she allowed to rent it out during the 5 year period, but he can opt to purchase or lease a different property.
The qualifications and general requirements for the issuing of a certificate under this Programme are that such person:
(A) Is at least 18 years old;
(B) Meets the application requirements;
(C) Has a clean criminal record (as do his dependants), has passed the due diligence test and is a fit and proper person;
(D) Commits himself to provide proof of title to the Qualifying Property;
(E) Commits himself to a Qualifying Investment of an initial value of €250,000, which must be held for a minimum period of 5 years from the date of certificate;
(F) Commits himself to pay in full a contribution of €30,000;
(G) Has not had his application deemed to be against the public interest.
Once the applicant satisfies the qualifications and general requirements, the applicant together with the registered dependants will have the right to reside, settle or stay indefinitely in Malta.
Although the MRVP does not specifically address the scope of the Beneficiary’s taxation, in terms of Malta’s income tax law, the scope of taxation in Malta largely depends on the individual’s residence and domicile. Once an individual is granted Maltese residence under the Programme, such person would therefore be liable to pay tax contribution in Malta if he resides in the island for more than 183 days in a calendar year. Tax contribution would be calculated on any source income and on any foreign income remitted to Malta. A qualifying person is taxed at the flat rate of 15% on foreign-sourced income (excluding capital gains) received in Malta while retaining the right to request double taxation relief against any foreign tax suffered.
In accordance with Legal Notice 288 of 2015, individuals who are currently beneficiaries of the Global Residence Programme shall be allowed to apply for the issuance of a MRVP certificate subject to satisfying all the additional eligibility requirements of the Regulations.
The South of Malta has been defined to include the following towns and villages: Birżebbuġia, Cospicua, Fgura, Għaxaq, Gudja, Kalkara, Kirkop, Luqa, Marsascala, Marsaxlokk, Mqabba, Paola, Qrendi, Safi, Santa Luċija, Senglea, Siġġiewi, Tarxien, Vittoriosa, Xgħajra, Żabbar, Żejtun and Żurrieq.
Gonzi & Associates, Advocates is a registered accredited and approved agent with Identity Malta, and may therefore represent and assist clients at all stages for the purposes of sending applications to Identity Malta in order to adopt the Malta Residence and Visa Programme.
