Taxation is a crucial aspect of deciding which investment immigration program is the right one for you.
Investment thresholds involve the need for money up front, but any potential investor should also be researching the tax implications of taking residency, or later citizenship, in a given country.
Malta offers both residence and citizenship-by-investment opportunities, and tries to be as competitive as possible with its tax policies.
Malta Residence Investor Program: Tax Summary
- Progressive tax rates ranging from 0% to 35% based on the annual income of the resident
- No tax on foreign capital gains and unremitted foreign income
- No minimum annual tax liability
Once all the initial requirements of the Maltese investor programs have been met, successful applicants will not be tax on money held outside of the country which they do not bring in.
Capital gains sourced outside of the country are also not subject to tax, whether the money is brought into the country or not.
Any non-capital gains money that residents do bring in to the country is subject to a lower taxation rate or 15 per cent. Income earned in the country, whether personal, business or from investments, is subject to a 35 per cent tax rate.
Investment Requirements for Malta Individual Investor Program
- Main Applicant €650,000
- Spouse €25,000
- Child under 18 €25,000
- Unmarried child aged 18-26 €50,000
- Dependant parent over 55 €50,000
After approval, the applicant must
- Invest at least €150,000 in approved instruments and hold the investment for at least five years.
- Buy residential immovable property in Malta with a minimum value of €350,000 and hold the property for at least five years or lease a residential immovable property in Malta with a minimum annual rent of €16,000 for a period of five years.
It is also worth considering Malta’s double tax treaties with more than 60 nations, including Canada, the USA, Australia and the majority of Europe. This means the same income can never be taxed twice. For example, Maltese residents receive their foreign pensions tax-free at source, but subject to the reduced tax rate of 15 per cent when brought in to the country.
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