Archive for the ‘Residence in Malta’ Category

Relocation

June 1, 2010
 An EU citizen of the EU has 2 options:1st Option:

One may set up residence in Malta, under the “normal” Immigration Regulations (Legal Notice 205/04), whereby EU citizens can set up residence and work in Malta.  The application is vetted and permit issued by the Immigration Office, the Malta Police.  The procedure consists of an application for a residence permit, and an application for an employment licence (or proof of self-employment).

Such a resident will be treated as a Maltese resident for tax purposes, and will pay tax at 35% on income that arises in Malta or is remitted to Malta.

Breaks in residence must not exceed 6 consecutive months.

2nd Option:One may set up residence in Malta under the optional Residents Scheme Regulations (Legal Notice 428/04).  This scheme is administered by the Expatriates Section of the Inland Revenue Department.  The appropriate application with supporting documents is to be filed with the Commissioner of Inland Revenue; the Police Authorities will also carry out certain checks.  In this case a reduced personal rate of 15% tax on funds brought into/or income arising in Malta is paid; subject to a minimum annual amount of €4,150.  There are also exemptions/reduced tax on personal effects (including a car) brought to Malta.The main requirements and restrictions:

  • The applicant must have a capital (bank deposits, investments and immovables) worth  €349,406, or an annual income of €23,293.  
  • Brings into Malta a minimum annual amount of  €13,976 (plus €2,329 for each dependant).
  • Within a year of taking up residence, the resident permit holder is required to either lease a premises at a rent of not less than €4,150 per annum, or purchase a house of not less than €116,468 or an apartment of not less than €69,881.  There is no minimum stay requirement.
  • The exercise of a profession, occupation, or any employment or engagement in trade/business is prohibited.
For further information, kindly contact 77 Great Estates on (00356) 2125 2455; (00356) 9944 7444; skype: info.77GreatEstates or info@77GreatEstates.com  
   
 
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EU Residency in Malta now available to non-EU citizens

March 17, 2010

To top it all, Malta offers huge tax advantages for Permanent Residents and our correspondent firm of attorneys in Malta, Hugh Peralta & Associates, will guide you through the best structure to achieve your goals.

 Neels Pretorius a South African whose family is now based in Malta states that “whilst many remain in South Africa because we love it and feel huge belonging and are committed to the country’s success, the present economic, social and political situation leaves many of us uncertain with what the future will hold in store for us, and indeed for the country.  For the security of our families and ourselves both financially and physically, most of us have researched alternative countries where to relocate to individually or with our families.”

 The problem with most options relating to foreign Residency is that many countries – unlike Malta – now have very strict immigration laws; it is very costly and also demands an allocation of time spent in that country to sustain that country’s Residency requirements (usually at least 3 months of each year and normally 6 months of each year).

 What you need to know is that Malta is situated just 90km south of Sicily off the Italian coastline practically in the dead centre of the Mediterranean featuring one of the best climates available and sporting almost zero violent crime.  The country is made up of 3 islands namely, Malta, Gozo and Comino covering a total area of 316 sq km but still more than enough space to house an international airport and a superb sports club featuring tennis, squash, cricket, gym, billiards, swimming pool and a 18 hole golf course!

 Malta has a hugely rich history of colonization, thousands of years old, including that of the Knights of St John for nearly 300 years.  The most recent was that by Britain which enjoyed a happy rule for over 160 years until Maltese independence in 1964.  This has ensured English as the other official language to Maltese and its place at the language of business which makes communication very easy indeed.  The spectacular wealth of historical buildings are everywhere to be seen and are preserved meticulously.

 In 2004, Malta was accepted into the European Union (EU), and the “Euro” is its currency.  It is included in the Schengen Treaty, ending internal border checkpoints between 26 countries – this has opened up huge commercial and social opportunities.  Having adopted the best of the Mediterranean lifestyle, Malta now has all the benefits of the EU coupled with its “tax efficient” status making it hugely attractive for investors looking for fiscal benefits and also a social magical lifestyle.

 With fantastic education (Verdala English International School, San Anton, San Andreas); virtually non existent violent crime; excellent medical services and facilities; wonderful Mediterranean food, drink and lifestyle; inviting warm crystal clear aquamarine sea and characteristic rocky ledges as well as fine sandy beaches (a rarity in the Med), you must now be asking yourself, “what’s the catch”?

 There is none.

 The Malta Permanent Residence Scheme is a most attractive residence scheme currently available to individuals seeking to transfer their tax residence from high-tax countries to overseas lower-tax jurisdictions such as Malta.  Of course this is being said over and above other social/political considerations – in case Malta is also an attractive destination.

 The country offers a wide variety of residential properties; same type that might be of interest to the typical SA buyer include marina apartments and penthouses, converted farmhouses in the countryside, houses of character and palazzos in the quaint villages, luxury villas.  Selling prices range from €60,000 to €8,000,000.  Long lets are comparatively cheap, some residences can be rented for 0.2% of selling price per month.

 Mr Pretorius stated as follows: I have personally relocated my family to Malta at the beginning of 2009 on the permanent residency scheme; I can take you through it!   From our personal experience, living cost is on par with what we are used to in South Africa, example:

  • Accommodation:  Rent 5 bedroomed House of Character with swimming pool, Wi Fi Internet, Sky HDTV – €1,700 PM
  • Motor cars: 2010 VW Polo – €18,000, 2010 Mercedes A 160 CVT – €29,000
  • Private Medical Insurance (similar to Discovery Health) – €200 PM for a family of 4

 The financial qualifications are very easy to satisfy.  Permanent residents are entitled to the following benefits:

  • No minimum stay requirements
  • No need to purchase property – only a minimum annual rent of €4,230.   The option to buy property at a minimum of €69,881 removes the leasing requirements
  • No inheritance/wealth taxes or rates and taxes on property
  • No minimum investment requirements
  • A low minimum annual tax liability of a mere €4,150 (approx. R42,000)
  • No world-wide income/wealth tax – tax only paid at 15% on income remitted to and kept in Malta

 We offer:

  • to meet you at Malta’s airport;
  • arrange bookings (with a discount) at a local hotel;
  • local real estate expertise;
  • in-house lawyers;
  • public notary (drafting of the preliminary agreement/sales contract and registration of same);
  • excellent relationships with:

the local authorities; banks for account opening, investments, trusts formation and finance requirements; private medical insurance companies such as BUPA, medical specialists such as pediatricians, GPs and dentists; motor dealerships and car rental companies; and schools for children;

  • in-house expertise in obtaining the requisite residency permits for the clients (and their pets!) as well as the permit required to buy real estate here.

 Most importantly maybe, an understanding of South African circumstances, culture and tastes, wants and needs in general.

 We basically hand hold you and show you the identified properties according to your wish list and assist with the services as mentioned above.

 In less than 4 months you could become a Permanent Resident of Malta and have free movement in and out of the 26 countries in Europe that have signed the Schengen Treaty (no more visas!).  The only time you need to visit Malta (and still keep your Permanent Residency) is upon signing of confirmation documents once your application has been accepted, i.e. you can stay living in South Africa if you want!   For the initial 5 years, visas are issued and renewed annually; thereafter permanent.

 To find out more come in for a FREE confidential consultation and in 2 months you could find yourself in the Mediterranean.  Contact us on the details below and we will arrange for your initial briefing appointment.  Alternatively all correspondence can take place telephonically/Skype (info.77GreatEstates) or via email with no need to meet.  Therefore, kindly do not hesitate to contact Dr Carl Peralta in Malta on (00356) 9944 7444 or carl@77GreatEstates.com or Mr Neels Pretorius in South Africa on +27(0)836991932  and Malta on (00356) 9933 1140 or sa@77GreatEstates.com.

 Until then, visit our website www.77GreatEstates.com and blog where we trust you will find most of the answers that you are looking for.


Residence in Malta – Article by Hugh Peralta & Associates – Advocates

August 7, 2009

 

Malta Residence Scheme

The Maltese Islands form part of an archipelago strategically situated at the centre of the Mediterranean – 100 kilometres south of Sicily and 300 kilometres east of Tunis.  This has probably been one of the factors that led Malta to be occupied by various empires for a long period of time.

  The Phoenicians, Carthaginians, Romans, Arabs, Normans and Knights of St John along with the French and the British all realised the potential of the Maltese Islands.  They have also left their mark on the Maltese culture which is a mix of cultures.  The language is of Semitic origin, however, it has assimilated a number of words from Italian and English.  Maltese and English are the two official languages and other languages are widely spoken.

 Malta enjoys good weather with mild winters and a rather long summer period.  It is a popular tourist destination and the Maltese are renowned for their hospitality and friendly disposition.

 Why Malta?

 Apart from the favourable Mediterranean climate and its geographical location Malta has a good standard of living.  It is a safe country with low crime rate and has a very good health and education systems.  Malta is also an ideal location to combine business and pleasure due to its excellent telecommunications infrastructure.  It is easily reached from all European countries and is served by a number of airlines.

 Malta encourages foreigners to take up residence within its shores.  The policy is supported by the ‘Permanent Residents Scheme’ which has existed in some shape or form since early 1970s.  The Residents Scheme Regulations of 2004 outline the various benefits under the scheme as well as a number of fiscal incentives available to certificate holders. 

 Residents Scheme Regulations

 An individual may take up residence in Malta under the Residents Scheme by obtaining a certificate from the Inland Revenue.  The certificate is issued for an indefinite period as long as certain conditions are satisfied on an annual basis.  Holders of such a certificate and their dependants may thus enter and leave Malta as and when required without any formalities.

 Fiscal Incentives

 The following is a list of fiscal incentives and advantages applicable to holders of a certificate issued in terms of the Residents Scheme Regulations, 2004:

 · A flat rate of income tax of 15% on income remitted to Malta with a minimum tax liability of  €4,200 per annum.  Income arising abroad which is not remitted to Malta is not subject to any Malta tax;

 · Worldwide basis of taxation is not applicable to persons who are resident but not domiciled in Malta;

 · Capital gains remitted to Malta are not subject to any tax whatsoever;

  · Access to Malta’s wide treaty network as well as unilateral relief provisions.  Certain income (such as dividends, interest and royalties) remitted to Malta may qualify for reduced withholding tax rates whereas other income (such as pensions and capital gains) may be exempt from foreign tax.

 · No net worth or wealth taxes;

 · No inheritance tax.  However upon the transfer or transmission (upon death) of real estate or shares in a company owning mainly real estate a duty of  €11.65 on every €233 or part thereof is payable.  Other shares and securities attract a duty on documents of €4.65  on every €233 or part thereof;

 · No real estate tax.  Any capital gains realised on the transfer of one’s own residence is exempt from tax if the property has been owned and occupied for at least three consecutive years and the property is transferred within one year of being vacated;

 · No customs duties or VAT on household effects.  Non EU residents may be required to put a deposit or a bank guarantee for the VAT / duty in question.  Upon the expiry of 183 cumulative days stay in Malta such deposits or bank guarantees are refunded or cancelled provided the duration of stay can be proved.

 Duty on documents (stamp duty) is however chargeable upon the purchase of real estate in Malta at the rate of €11.65 on every €233 or part thereof .

  Who may apply

 Any foreigner, of whatever nationality, may submit an application under the scheme provided that the specific conditions are satisfied.

 Conditions for Application

 An individual is eligible for the Residents Scheme if:

 · He/she has an annual income of at least €23,300 or capital of at least €350,000;

 · He/she remits annually to Malta an income equivalent to €14,000 in his / her respect and €2,330 in respect of each dependant.

 Documentation

 The application form must be accompanied by the following documents:

 · A certificate from the applicant’s bankers showing either that he / she has an annual income of at least €23,300 or capital of at least €350,000.  The certificate must also certify that the applicant will be able to remit to Malta a minimum annual income equivalent to €14,000 in his/her respect and €2,330 in respect of each dependant in Malta;

 · A police conduct certificate in respect of each adult (18 years or over) whose name appears on the application form.  The certificate should indicate whether  there are any ongoing criminal proceedings.  If the certificate issued by the police authorities does not contain such information, the applicant should make a declaration on oath before a Commissioner of Oaths attesting whether he and his dependants have ever had any criminal convictions or have any ongoing criminal proceedings.

 · If a police conduct certificate is not available applicant should provide three character references from a banker, a solicitor, a medical practitioner, employer or previous employer, accountant or any person of a similar standing.

 · A copy of the marriage certificate in the case of a married couple or else full birth certificates;

 · Three passport size photographs and photocopies of the relevant pages of passport of each person whose name appears on the application form;

 · A copy of the deed of purchase or the lease/rent agreement if the applicant already owns or leases/rents property in Malta.  If the applicant does not own or lease property in Malta a copy of the deed or agreement is required to be produced at the point when one takes up residence in Malta.

 The above documents and their translation into English, if they are in a foreign language, must be certified by a Notary in the applicant’s country of residence. The Notary’s signature must be authenticated by the Ministry of Foreign Affairs in the applicant’s country of residence, and the documents must then be stamped by the Maltese Embassy or Consulate in that country.

 Timing

 The processing of applications takes around three months.

 The minimum amount of tax  €4,200 must be paid within 30 days from approval of the application and and this amount is credited against the tax due by the permanent resident for the first year of assessment.

 If the applicant does not take up residence within 12 months from the certificate’s date of issue, and such certificate is withdrawn, a refund of €3,030 is given.

 Once in possession of a certificate the holder:

 · Will be required to take up residence by not later than one year from the issue date of the certificate.  The holder should complete a prescribed document which must be presented together with identification documents to the Department of Inland Revenue, Expatriates Division within 15 days of arriving in Malta.

 · Must purchase a house valued at not less than €116,500 or an apartment of at least €70,000.  Alternatively he / she may lease or rent property for not less than €4,200 per annum.  The acquisition or lease should take place within one year from the issue date of the certificate.

 Other Residents

 An individual may take up residence in Malta by declaring his intention within three months of arrival in Malta.  For tax purposes, an individual is considered to be resident in Malta for a particular year if, during that year, his stay in Malta exceeds 6 months.  Foreigners residing in Malta are taxed on income and capital gains arising in Malta (unless exempt) and on income remitted to Malta.  Foreign source income which is not remitted to Malta is not subject to Malta tax and capital gains are not taxable even if they are remitted to Malta.

 The income tax rates applicable to foreign residents are the standard rates of income tax applicable to residents which are as follows:

Married   Single
              € %     %
0 to 10,482 0   0 to 7,570 0
10,485 to 18,635 15   7,573 to 12,811 15
10,637 to 23,294 25   12,814 to 15,723 25
23,296 and over 35   15,725 and over 35

For further information, kindly contact 77 Great Estates on (00356) 2125 2455; (00356) 9944 7444; skype: info.77greatestates or info@77GreatEstates.com.