This special tax status applies to individuals who are EU, EEA and Swiss nationals. In order to be granted this special tax status such individual must qualify as a beneficiary and apply to the Commissioner, through an authorised registered mandatory.
A beneficiary is an individual who:
- Owns property purchased for not less than €400,000 or rents property for an annual lease of at least €20,000
- Such property is occupied as a principal residence worldwide
- No person other than the beneficiary and his family members reside in such property and such property cannot be let or sub-let
- Individual does not benefit under the Residents Scheme Regulations or Highly Qualified Persons Rules
- Is not a Maltese or third country national
- Is in receipt of regular and stable resources
- Is in possession of a valid travel document and of sickness insurance
- Is not Maltese domiciled and has no intention to become so domiciled within 5 years from application date
- Is a fit and proper person
Tax Treatment:
- 15% tax rate on foreign source income remitted to Malta (excluding capital gains even if remitted) subject to a minimum annual tax payable of €15,000 and €2,500 for every dependent. Tax paid is not refundable
- Possibility to claim treaty and unilateral relief
- 35% tax rate on any other income not chargeable at the reduced 15% rate under these rules
- Separate computation does not apply
- Requirement to pay provisional tax in accordance with PT rules