28 May 2018

CONFIDERI Family Office offers clients assistance in getting a residence permit on Malta under two unique programs; Malta Residence and Visa Program (MRVP) and Global Residency Program (GRP)

Dear clients and partners of CONFIDERI Family Office,

 we are happy to tell you we are launching a new service to help you get a Malta residence permit under two unique programs available to the Russians and citizens of other countries (except Switzerland and the European Economic Zone). The programs offer exclusive opportunities for freedom of movement within the Schengen area and across the EU not only for immediate members of the applicant's family but for all of his/her other relatives, as well as effective wealth management solutions should you become a tax resident of Malta or should you be interested in the benefits that tax non-residents enjoy on Malta.

 
CONFIDERI experts handle the entire process of getting a residence permit under both programs. You can find more details here.

CONFIDERI Family Office offers clients assistance in getting a residence permit on Malta under two unique programs; Malta Residence and Visa Program (MRVP) and Global Residency Program (GRP)


What are the main benefits and opportunities offered by a Malta residence permit and by Malta as a country and jurisdiction in general?

  • high living standards, top notch health care and a great climate;

  • exclusive opportunities with regards to freedom of movement within the Schengen zone and the EU not just for the immediate members of the family of the main applicant but also for their more distant relatives, while there is no requirement to obligatory reside in the territory of Malta;

  • there is no tax on the source when dividends, interests or royalties are paid to non-residents of Malta;

  • effective wealth management solutions should you become a tax resident of Malta (this is determined based on two criteria: the number of days you have lived in Malta and/or your intent to reside in Malta is obvious);

  • tax residents only pay tax on revenue they get from local sources and on condition that the funds have been transferred to Malta (in other words, whatever revenue you make and keep elsewhere is not taxed, i.e. if the previous domicile is preserved), any capital gains generated outside of Malta are not taxed either if no funds are transferred into Malta;

  • there is no regulation on controlled foreign companies + Malta tax residents do not have to pay tax on revenue from foreign companies they control (provided the original domicile is preserved); there are no transfer pricing or thin capitalization rules;

  • the country has a conditional corporate tax accrual system under which the 35% profit tax paid by a company is to be refunded to the stockholders (thus reducing the effective tax rate to just 5% (trading activities: this is interesting in the context of the Russian rules on controlled foreign companies), 10% (passive revenue), 11.7% when double taxation avoidance agreements are used or 0% with 100% tax refunds if the qualified participation criteria are met).

The main benefits offered by the MRVP program

  • all family members can get residence permit as part of a single application: the spouse, any unmarried children, parents/grandparents + spouse + additional spouses and independent children and even their children (i.e. the main applicant's grand children);

  • freedom of movement in the Schengen agreement countries, no restrictions on living in Malta;

  • annual extension for the first 5 years, after that a formal ID-card reissue procedure every 5 years, i.e. permanent residence;

  • there is no requirement that capital be transferred to Malta annually and minimal tax be paid;

  • under the program, the applicant can get a work permit as well as permission to carry out business on Malta.

Key conditions to get the permit

  • real estate worth upwards of EUR 320,000 must be purchased (EUR 270,000 for real estate on Gozo Island or in Southern Malta), alternatively real estate can be leased for at least EUR 12,000 per year (EUR 10,000 per year for Gozo island or Southern Malta) for a period of at least 5 years (!) - you cannot lease out the property you buy or sublet the property you lease);

  • invest EUR 250,000 in Malta's economy (for at least 5 years - you can buy the state bonds);

  • confirm you have annual income of at least EUR 100,000 or have capital of at least EUR 500,000;

  • make a donation of EUR 30,000 (an initial donation of EUR 5,500 and another EUR 24,500 after your application is approved in principle plus EUR 5,000 for every additional applicant, except your spouse and children);

  • you must successfully pass all background security checks;

  • you must buy insurance for all members of your family.

The main benefits of the GRP program: 

  • you can get permits for all members of your family in one application: your spouse, plus your dependent children under 25 years of age, dependent brothers and sisters + the spouse and other dependent ancestors of the main applicant (parents/grandparents plus their spouse(s)),

  • plus you can get work and business permits for Malta;

  • a reduced tax rate of 15% for any foreign revenue you get on Malta;

  • tax benefits on the source and remittance principle (only local revenue gets taxed provided the former domicile remains unchanged, revenue earned outside of Malta is not taxed) + revenue remitted there is taxed at 15% under the program (plus double taxation avoidance agreements are used) + the possibility to transfer capital gains arising outside of Malta tax free (revenue earned by selling assets, revenue of past periods).

Key conditions to get the permit 

  • you must buy real estate worth upward of EUR 275,000 in Malta (EUR 220,000 if you buy real estate on Gozo island or in Southern Malta) or lease real estate for at least EUR 9,600 per year (EUR 8,750 per year on Gozo island or in Southern Malta);

  • every year you must pay minimal tax of EUR 15,000 in advance and file a tax declaration (one payment for the entire family);

  • You must pay a one-off contribution of EUR 6,000;

  • you must successfully pass all background security checks;

  • The maximum period the main applicant can stay outside of Malta is 183 days per year;

  • you must buy insurance for all members of your family.