HNWI Rules- is a new set of rules introduced by Malta for attracting high net worth individuals to take up residence in Malta. Benefit of HNWI Rules is that eligible individuals would be taxable in Malta on foreign source income which is received in Malta at the favorable flat rate of 15%.
A 35% taxable rate would be given to local source income and gains in Malta. Eligible individuals would either need a immovable property in Malta worth €400,000 or leased property having rental agreement of not less than €20,000 per annum to qualify. The qualifying immovable property must be owned by the applicant and his/her family’s principal place of residence. Appropriate health insurance and stable, regular resources is a must for the eligible individuals. A stay of 90 days every year for the beneficiaries under HNWI Rules is mandatory and are not allowed to stay in any other jurisdiction for more than 183 days. If the beneficiary is non-EU/EEA/Swiss falling under HNWI Rules, then they have to pay a minimum amount of €25,000 (plus €5,000 per dependent) in the form of tax.
Fluency in English or Maltese language is a must. In order to secure special rights of residence in terms and by virtue of agreement made with the Malta Government, beneficiaries will have to procure and renew appropriate entry visas. The agreement is made by signing a bond of €500,000 which would be delivered to the Malta government upon execution of the agreement. The bond is increased by an amount of €150,000 in respect of each dependent of the beneficiary.
If a beneficiary renounce the benefits of the HNWI Rules within four years from the date of the agreement, the bond would be returned to the beneficiary. If the bond gets lapsed after 4 years, it would be forfeited accordingly. An applicant who is a long-term resident can forfeit the bond immediately after 4 years or the beneficiary should become along term resident at the end of 4 years.
Malta Permanent Residents Scheme is not replaced by HNWI Rules but new permits shall be issued under HNWI. Individuals waiting to receive permanent residents permits shall have to meet requirements of HNWI Rules additionally such as regular and stable resource, health insurance and resident and beneficiary requirements.
Applications submitted for a Permanent Resident Permit before 14 September 2011 but was not issued a permit before 1 January 2011 would be eligible for HNWI Rule benefits on qualifying necessary requirements..