Malta as a destination for expatriates

Malta is the smallest Member State in the European Union and is located in the Mediterranean Sea, between Sicily and North Africa. 

In 2016, Malta was the fastest growing economy within the EU with 6.7% growth in GDP in nominal terms, had an unemployment rate of 4.8% and more than 7,500 new jobs were created in the private sector. The main contributing industries to the economy are iGaming, Financial Services, Tourism, Shipping and Real Estate. 

Due to its Geographical location, friendly business environment and a country where English is well spoken, (together with other languages) Malta is well equipped to attract new Investment. Furthermore it has an excellent telecommunications infrastructure and direct flight service to various cities in Europe. 

Complementing this business environment, Malta has a robust Banking system, a well-regulated Financial and Gaming sectors, as well as a business friendly tax regime.

Malta Joined the European Union in May 2004 and adopted the Euro currency in January 2008. 

According to the Wall Street Journal, Malta ranked as the third best country for expatriates to live in. This is due to various characteristics, mainly: 

1. A favorable weather, with hot summers and mild winters. 

2. Has very long hours of sunshine throughout the year, with an average sunshine of 8.5 hours per day 

3. Friendly business environment 

4. A high standard of education 

5. Most locals can speak English and other languages 

6. A beneficial tax regime. 

There are mainly 3 types of residence programs: 

d. IIP (Individual Investor Program) 

e. MRVP (Malta Residence & Visa Program) 

f. GRP (Global Residence Program) 

Through the IIP, the applicant, if approved, will be issued with a Maltese passport. The other two programs, permit the applicant (again if approved) to reside in Malta and will be issued with a Maltese residency card. 

Through these programs applicants would be considered as residents, but not domiciled in Malta, and therefore would be entitled to the following tax benefits:

5. Will be taxed only on income remitted to Malta or arising in Malta 

6. If certain conditions are met, no tax is charged on money transferred to Malta 

7. There is no wealth tax 

8. No tax is charged on Capital gains that arise outside Malta. 

9. Tax on Maltese company profits can effectively vary from 0 to 10%, usually the rate is 5% 

The three programmes in brief:

Should you need any further information, please contact us on robert.ebejer@reandamalta.com 

+356 21235064

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