High net worth individuals scheme to replace permanent residency scheme

Finance Minister Tonio Fenech has launched The High Net Worth Individuals Scheme.  This scheme will replace the permanent residence scheme which was suspended earlier this year.

Two sets of rules would be in place – one set applicable to EU applicants and another set applicable for third country nationals.

Some of the conditions under these new rules include:

• Property acquired has to be worth a minimum of €400,000 or alternatively, rent at a minimum of €20,000 a year
• Individuals have to spend a minimum of 90 days per year living in Malta
• Individuals are required to have a health insurance recognised to cover Europe
• An application fee of €6,000
• The tax rate on foreign income would be 15% and normal tax rates would apply on any local income
• Non-EU residents are required to renew their visa every three months.  Alternatively, they can enter into a contract with the government with a financial bond of €500,000 and €150,000 per dependent, thereby purchasing permanent residency after five years when the money then becomes the property of the government.  Minimum tax payment would be €25,000 a year.

Existing permanent residents will only lose their status if they sell their property in Malta.

Applications received or copies of promises of sale signed before launch of this new scheme and which were not processed due to the suspension of the scheme will have the application fee of €6,000 waived.