The core of the previous investor incentive scheme will be reinstated; wealthy individuals seeking a permanent residency in Malta are required to purchase a high-value property and pay the government a minimum annual tax sum. The required amounts will, however, be changed.
Under the new plan, the value of the acquired immovable-property should be worth at least EUR 275,000 (RMB 2.2 million) in Malta or EUR 220,000 (RMB 1.7 million) in Gozo or South Malta where reality prices are generally lower. This is a major reduction from the previous EUR 400,000 (RMB 3.2 million) minimum.
Another option for investors would be to rent a property for a minimum of EUR 9,600 (RMB 77,000) in Malta or EUR 8,750 (RMB 70,000) in Gozo or South Malta. Rental requirements will be reduced from EUR 20,000 (RMB 160,000).
As a new resident of Malta, a HNWI will be required to contribute at least EUR 15,000 (RMB 120,000) in annual taxes to the Maltese tax coffers regardless of locality, down from EUR 25,000 (RMB 200,000) in taxes plus a previous EUR 5,000 (RMB 40,000) per dependent.
According to the announcement, the government will pass necessary legislation to implement the lobal Residence Programme by end of June 2013.
The Government will support this scheme with all the necessary infrastructure to operate and work well. We will see that the procedures that operate this program are not bureaucratic and create the least possible disruption to applicants who want to invest and pay taxes in our country", said Zammit. The Malta Developers Association has predictably voiced its support to the new residency incentive scheme that will boost the property market. The MDA has been calling for a renewal of the previous program, which had been shelved in December 2010.
The MDA had been insisting for a long time that a programme like this has to have attractive conditions to succeed and it appears that now government has come up with a good programme with more realistic conditions than had been introduced previously, read a statement by the association.
Although supportive of the new bill, the MDA highlighted other problems facing foreigners who are not citizens of the EU or of the European Economic Area and who want to buy property in Malta but without wanting a residency in the country.
The political opposition on the other hand stated that while it favors permanent residency schemes to improve the economy, it feared a lack of safeguards to mitigate the associated risks.
The Nationalist Party pointed out that holding a Maltese residency meant that non-EU nationals will be entitled to free health care, free education (including university tuition), along with other benefits that will eventually be partly covered by taxes from ordinary Maltese citizens.
