Malta is an EU member state which is fast becoming the destination of choice for foreigners who, for various reasons, seek to relocate to the centre of the Mediterranean. Malta boasts an idyllic climate with more than 300 days of sunshine per year, low crime rate, world heritage attractions and friendly locals. Malta has enjoyed a booming economy for decades and successfully attracted numerous business ventures by offering competitive tax rates and other incentives. A 2015 survey published on the Wall Street Journal, ranks Malta as the third best country for expatriates, listing the work-life balance, health care and overall well-being as some of the main motivators. International Living ranked Malta in the top 10 in its ‘World’s Best Retirement Destinations for 2015’ survey, highlighting the low crime rates and the Mediterranean cuisine as key factors. Finally, the New York Times lists Malta as the 3rd world’s best destination to visit in 2016.

The Government of Malta has recently introduced the Malta Residence and Visa Programme through which applicants may acquire the right to reside in Malta, subject to the fulfilment of certain conditions, including:

• An investment of €250,000 in qualifying investments as may be periodically determined by Identity Malta, (e.g. Government bonds);
  
• A qualifying property by way of purchase at a minimum value of €320,000 or by way of lease at a minimum rent of €12,000 per annum;
• Economically stable, i.e. must have an annual income of at least €100,000 per annum arising outside Malta or be in possession of capital of not less than €500,000;
• Is not a national of Malta or any other EU/EEA state;Holds a comprehensive health insurance covering himself and all dependents for all risks across the whole of the EU;
• Is in good health and not suffering from any contagious disease;Is of good character; and
• A government contribution of €30,000, of which €5,500 is non-refundable and affected upon submission of application.

Please note that this status would not entitle the holder to exercise any rights other than those expressly granted. For example, the exercise of employment activity remains subject to the employment license requirement.

In and of itself, the status in terms of the Malta Residence and VISA Programme would not affect one’s liability or otherwise to Maltese Income Tax. This liability or otherwise would depend upon the beneficiaries’ personal facts and circumstances, specifically whether s/he would be considered to be resident for tax purposes and/or domiciled in Malta.