By virtue of two legal notices published on the 8th of July, the High Net Worth Individuals Rules (HNWI Rules) have now been amended to reflect the Global Residence Programme threshold, both in terms of tax and property value (be it purchase or lease), and a new special tax status is presented.
The Residence Programme Rules 2014 (as they have been entitled), are to be effective retrospectively from the 1st of July 2013. In fact the Legal Notice amending the High Net Worth Individuals Rules states that the Commissioner shall not receive such applications after the date of publication of the Residence Programme Rules. This Legal Notice in fact states that individuals granted a special tax status under the High Net Worth Individuals Rules, may apply to the Commissioner to be granted a special tax status under the Residence Programme Rules.
The Property value reflects the thresholds established by the Global Residence Programme (available for non-EU, non-EEA and non-Swiss nationals) and this is of least €275,000. However, when the property is in the south of Malta or in Gozo, the minimum value can be of €220,000. The previous value was €400,000. The rent threshold has also been lowered to €9,600 for leases in Malta and €8,750 in Gozo or the south of Malta. The previous value was €20,000.
The new program establishes that the minimum tax payable is €15,000, with further income arising outside of Malta but brought into Malta to be taxed at 15%, this is a significant decrease from €20,000 plus an additional €2,500 per dependant. The minimum tax payable is due in advance every year, and shall be payable before the 30th of April.
An application seeking confirmation of the special tax status must be submitted to the local tax authorities by an Authorised Registered Mandatory registered as such with the local tax authorities and engaged for the purposes by the applicant. CSB Group is registered with the local tax authorities as an Authorised Registered Mandatory.