In the wake of the recent announcement of property prices increasing in Malta by 4% last week, today the Parliamentary Secretary for Competitiveness and Economic Growth Hon Dr Edward Zammit Lewis launched the much awaited Global Residence Programme that will replace the HNWI Schemes. The new programmes have been created to incentivize those individuals outside the European Union and outside the European Economic Area who want to invest in Malta.
The Government intends to introduce the relative subsidiary legislation by no later than the end of June 2013. This new Malta residence programme will also be incentivising those who seek to invest in the South of Malta and in Gozo.
“The Government will support this scheme with all the necessary infrastructure to operate and work well. We will see that the procedures that operate this program are not bureaucratic and create the least possible disruption to applicants who want to invest and pay taxes in our country, ” said Hon Dr Zammit Lewis.
The new programme effectively reduces the thresholds that were imposed in the previous HNWI schemes. Now, one may buy a property a property for EUR 275, 000 compared to the EUR 400, 000 or rent a property for EUR 9, 600 compared to the previous EUR 20, 000. The bond of EUR 500, 000 has been completely removed and the minimum tax threshold has been reduced to EUR 15, 000.
The Global Residence Programme will provide a strong boost to various economic sectors leading to Economic Growth. It will be revitalizing the property sector by increase property purchase in Malta, especially that of a certain value. Allowing the country to get more money in taxes. Increasing work, even to professionals in this sector such as lawyers and tax consultants. It will also help the Financial Services industry, the leisure, construction and hospitality industry.
Commenting about the new Global Residence Programme Kevin Buttigieg, CEO of RE/MAX Malta commented by saying “This new scheme has been made very attractive and puts us straight back on the map, where both Europeans and Non-Europeans will find Malta or Gozo a very good option from a lifestyle, language and probably most importantly a fiscal point of view. We expect that the Malta Real Estate Market will be provided a boost with this well though out programme”.
As an initiative to the South of Malta and Gozo, the fee being applied will be reduced as well. This position taken by the Government reflects the fact that prices of property in the South of Malta and in Gozo are lower. It is also intended to boost these areas and create the Economic Growth needed to move forward.
The Parliamentary Secretary for Competitiveness and Economic Growth said that this programme is a direct result of effective consultation, where those involved forwarded their suggestions and ideas to set up this programme to increase our country’s competitiveness.
Table 1.0 – Comparison of Previous Scheme and the new Global Residence Programme
|
HNWI |
New Global Residence Programme |
||
|
Malta |
Għawdex Malta (South) |
||
|
€ |
€ |
€ |
|
| Purchase of Immovable Property |
400,000 |
275,000 |
220,000 |
| Rent |
20,000 |
9,600 |
8,750 |
| Bond |
500,000 plus 150,000 kull dependent |
0 |
0 |
| Minimum Tax |
25,000 plus 5,000 kull dependent |
15,000 |
15,000 |
| Application |
6,000 |
6,000 |
5,500 |
*All figures are denominated in Euro
For a more detailed description of the Malta Global Residence Programme and how more information regarding the Malta Real Estate Market click on one of the above links
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