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The Hon. Dr. Zammit Lewis claims that the new programme is much more attractive than its predecessor as it will also offer very good incentives for persons outside the European Union and outside the European Economic Area who want to invest in our country. The Government has set an end of June deadline for the relative subsidiary legislation to be introduced. This new residence programme will also be offering incentives for those who seek to invest in the South of Malta and in Gozo, a concept which is new compared to previous residency programmes.
The new programme reduces the thresholds required for foreigners who wish to purchase immovable property as well as those who prefer to rent property in Malta. The tax threshold was also lowered to 15,000 Euros. The bond amount of the previous scheme amounting to 500,000 Euros was also removed. The Maltese Government has taken into consideration the fact that to the South of Malta and in Gozo, prices of property are lower. Furthermore, by lowering the threshold in these areas the Government hopes to boost these areas and create the economic growth.
The old permanent residence scheme was abruptly suspended in January 2011 and replaced with the High Net Worth Individuals scheme in September of the same year. The HNWI scheme was intended to attract wealthy foreign nationals who not only purchased property on the island but also contributed to the island’s economy. These changes meant that the minimum required spend on property increased from €116,000 to €400,000 for properties bought after September 14, 2011, among other conditions. Due to the way the original permanent residence scheme was suspended coupled with the substantial increase in the required thresholds meant that the HNWI scheme came in for some criticism and was viewed by many as having a negative impact on the market.
It is believed that the new Programme shall also require the use of an Authorised Registered Mandatory in Malta to submit the application on behalf of the client, a requirement that was introduced under the HNWI scheme.
A comparison of the High Net Worth Individual Scheme and the new Global Residence Programme:
HNWI |
Global Residence Programme |
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Malta |
Gozo Malta (South) |
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€ |
€ |
€ |
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Immovable Property Purchase |
400,000 |
275,000 |
220,000 |
Rental |
20,000 |
9,600 |
8,750 |
Bond |
500,000 plus 150,000 per dependent |
None |
None |
Minimum Tax |
25,000 plus 5,000 per dependent |
15,000 |
15,000 |
Application Fee |
6,000 |
6,000 |
5,500 |