Malta is becoming an increasingly popular destination for many foreigners looking to relocate. The small island boasts a stable economy, sublime climate, as well as numerous leisure and cultural attractions. English is widely spoken which facilitates settling in and overcomes language barriers. A 2016 survey conducted by the Expat Insider ranks the Maltese islands as the second–best place in the world for foreigners to live globally, and as the top destination in Europe.
The Residence Programme Rules (RPR) enacted by the Maltese Government allows beneficiaries and their qualifying dependents to qualify for a special tax rate subject to fulfilling certain criteria, whereby the beneficiary:
Malta’s remittance basis of taxation means non-domiciled individuals are only subject to Maltese tax on income arising outside of Malta to the extent that it is received in Malta. The status grants the beneficiaries and their qualifying dependents a flat 15% Malta tax rate on any such income which is remitted to / received in Malta, subject to the payment of the minimum tax mentioned above (payable in full in both the year when the tax status is received and the year when it ceases to apply, as well as each full tax year for which the status applies). Any chargeable income and gains arising in Malta would generally be taxable at a flat 35% rate of tax. Finally, any capital gains arising outside of Malta, would not be subject to Maltese tax.
A Tax Residence Certificate (‘TRC’) may be issued by the Maltese Inland Revenue Department, however issuance of such is subject to the beneficiary satisfying to the Maltese Inland Revenue that s/he is a tax resident of Malta in terms of Maltese domestic law.
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