The Malta Global Residence and Malta Residence and Visa Programmes

Dr. Kevin F. Dingli Dr. Veronica Delicata

2 GLOBAL RESIDENCE PROGRAMME(“GRP”)- Dr. Veronica Delicata

Senior AssociateDingli & Dingli Law Firm

3 Global Residence Programme Programme intended to attract expatriates (non EU, non EEA or non

Swiss) who are not long term residents of Malta AND who are seeking to establish an alternative residence base in the European Union.

Essentially a Tax Programme administered by the Maltese International Tax Unit (the “ITU”) in terms of which a Beneficiary can benefit from substantial tax saving opportunities.

Programme does not preclude Beneficiaries from working in Malta provided they obtain a work permit.

4 Malta Residence Programmes Options

Ordinary Residence Business Immigration Malta Residence and Visa Programme The Global Residence Programme The Residence Programme United Nations Pensions Programme Malta Retirement Programme Qualifying Employment in Innovation and Creativity (Personal

Tax) Rules Highly Qualified Persons Rules

5

Eligibility Criteria 1. Individual Applicants - excluding EU, Iceland, Norway, Liechtenstein and

Swiss nationals

2. Dependant Family Members and Household Staff may also be included within the Application (provided they reside with the Beneficiary in the Qualifying Property).

NOTE

►Applicants having dual nationality one of which is EU, EEA or Swiss are not eligible under the Programme

►Beneficiaries under any of the other Malta residence programmes are also excluded.

6 Eligible Dependants Eligible Dependants may be included in the same GRP Application:

- Spouse / Partner in a stable relationship- any Minor Child of the Applicant or of his Spouse / Partner,

including an adopted child- any Adult Child of the Applicant or of his Spouse / Partner (18 – 25 years of age and economically inactive)- any Adult Child of the Applicant or of his Spouse / Partner

unable to maintain himself owing to serious illness or disability - any Dependant Brothers, Sisters, Parents or Grand Parent of the Applicant or of his Spouse / Partner

7 Athorised Registered Mandatory

Applicants must be introduced to the ITU and represented throughout the application process by an Authorised Registered Mandatory (“ARM”)

Continued representation by the ARM at all times during the Beneficiary’s participation under the Programme

Dingli & Dingli Law Firm – recognised as an Authorised Registered Mandatory

8 Conditions 1. ►Own or Rent a Qualifying property

Value of property depends on location thereof in the Maltese islands In case of purchase, minimum value in range € 220,000 − € 275,000 In case of rent, minimum rental in range €8,750 - €9,600 per annum

Property already in ownership/ rent of Applicant can be used Property may not be let or sub-let to third parties Property to be occupied as principal place of residence worldwide (Primary

Residence) Property to be used exclusively by applicant, his dependants and any

household staff

12 months from date of ‘Letter of Intent’ by the Authority for condition of the Qualifying Property to be fulfilled.

9 Conditions (contd.)2. ►Be economically self- sufficient with stable and regular resources3. ►Possess a valid travel document4. ►Possess worldwide health insurance cover (€50,000 per

person) 5. ►Ability to Communicate in English or Maltese6. ►Is fit and proper

Administrative Fee (non-refundable) of €6,000 / €5,500 (if Applicant already owns property in the South of Malta)

10 Submission of GRP Application Forms and Documents (fully complete and in the required format)

Administrative Fee paid

Forms : (1) Application for Special Tax Status Global Residency Programme.

► this includes the authorisation of Authorised Registered Mandatory (2) Questionnaire in Connection with Global Residency Programme

Supporting Documents Original Supporting Documents (except where certified true copies of

originals are permissible) + authenticated English translationsExamples : Birth / Marriage / Police Conduct Certificates; Bank Statements etc.

Certified copies of documents and authenticated translations need to be legalised by Apostille (Hague Convention 1961) unless done in Malta

11 Indicative Time Line (in Weeks)

Submission of Application Forms and Documents to ITU

ITU issues Acknowledgement Letter and commences Due Diligence

ITU invites Applicant for an Interview in Malta

Letter of Intent / Notice of Primary Residence issued

Qualifying Property secured / Notice of Primary Residence submitted (Tax Reg. No. issued)

Payment of initial minimum Income Tax of €15,000

Letter of Confirmation of Special Tax Status issued

1

2

6

8

10

12

7

12 Malta Residency Cards (Economic Self Sufficiency)

Malta E-Residency Cards may be obtained by the Beneficiary and his Dependants on grounds of economic self-sufficiency

Application is made to Identity Malta Charge of €55 per applicant Capture of Biometric Data of Beneficiary and Dependants E-Residency Cards issued within 6 weeks E-Residency Cards must be collected in person E-Residency Cards are issued for a validity of 2 years

13 Malta Residency Cards - Requirements Requirements :

1 Letter to Identity Malta by the ARM giving reasons for application2 Completion of relevant Application Forms (Form K / Form ID-1A)3 Copy Letter of Confirmation of Special Tax Status4 Copy of Passport5 Recent Bank Statements (proof of financial means)6 Evidence of Comprehensive Worldwide Health Insurance (€50,000 minimum)7 Copy of Residential Lease Agreement8 Copies of Birth and Marriage Certificates

14 Residence <=> Domicile

Domicile

Origin (Birth)

Choice (Permanent Resettleme

nt)

Residence

Factual -183 days

Residence Programme

s

15 Global Residence Programme – Tax Treatment

As Resident Non-Domiciled individuals, beneficiaries would be subject to: Tax on Malta source income & foreign source income received in Malta, Foreign source Capital Gains are exempt even if received in Malta.

Special Tax Status Flat rate of 15% on foreign source income received in Malta, Minimum tax of €15,000 per annum Double Tax Relief available but subject to minimum tax payment.

35% rate on Malta source income: Such as over bank interest (MT bank account) and dividends (MT company)

16 Global Residence Programme – Continued obligations

Status holders not required to give count of actual physical presence in Malta but must ensure not to spend 183 days or more in any 1 other country;

Annually file Income Tax Return + effect payment of Income Tax

Annual Declaration to be submitted Continued fulfilment of the eligibility criteria; Not cause threats to :-

Public safety, Protection of public order, National security, Territorial integrity, Public health or morals.

17 Global Residence Programme – The Benefits

Fast process –

completed in weeks

Remittance basis of taxation + special tax

rate

No minimum presence required in Malta

Freedom of

movement within the Schengen

Area

Can include family

members +

domestic staff

18 MALTA RESIDENCE AND VISA PROGRAMME(“MRVP”)- Dr. Kevin F. Dingli

Managing Partner Dingli & Dingli Law Firm

19 Malta Residence and Visa Programme (“MRVP”)

Programme established by Regulations made under the Immigration Act in 2015 (Legal Notice 288/2015)

Leads to the acquisition of a permit to reside, settle or stay indefinitely in Malta

Identity Malta is the Government Agency responsible for the administration of the Programme

Applications are introduced to Identity Malta by Registered Accredited Persons (“RAPs”)

English is the language of the Programme

20 Malta Residence and Visa Programme (“MRVP”) Programme intended to fill a gap in the various residency and

citizenship programmes already available

Applies to third country nationals (non EU, non EEA or non Swiss citizens) (nationals of Afghanistan and North Korea are excluded)

Not a tax programme

Programme does not preclude beneficiaries from working in Malta provided they obtain a work permit

21 Malta Residence and Visa Programme

Programme centres around a Main Applicant and his Eligible Dependants

Residence Certificate issued once the established Conditions are satisfied

Certificate Entitles the Beneficiary and his Dependants to reside, settle or stay indefinitely in Malta

Residence Card also issued (valid for 5 years)(renewable)

Beneficiary not entitled to any other rights mentioned in the Immigration Regulations

22 Main Applicant The MRVP is focussed on the Main Applicant (‘Head of the

Family’), who must have the following qualifications : be at least 18 years of age meet the application requirements commit himself to provide proof of title to a Qualifying Property commit himself to invest in a Qualifying Investment commit himself to pay the Contribution

23 Eligible Dependants Eligible Dependants may be included in the same MRVP Application :

- Spouse / Partner of the Main Applicant- any Minor Child of the Main Applicant or of his Spouse (less than 18 years of age), including an adopted child- any Unmarried Adult Dependant Child of the Main Applicant or of his Spouse (18 – 26 years of age)- any medically certified Disabled Adult Child of the Main

Applicant or his spouse - any Dependant Parent or Grand Parent of the Main Applicant or of his Spouse

24 Appointment of Registered Accredited Person Applications are introduced to Identity Malta by a Registered

Accredited Person (“RAP”) RAP acts as the Main Applicant’s Representative on all

applications, correspondence and dealings with Identity Malta

The Main Applicant issues a Power of Attorney in favour of the RAP (and sometimes also enters into a Letter of Engagement with the RAP)

RAP completes and submits an Official Compliance Form (Form “MRVP5”) annually for first 5 years, and subsequently once every 5 years (also signed by Beneficiary)

RAP processes Residency Card renewal requests with Identity Malta

25 Proof of Assets or Income

• Capital Assets Requirement€500,00

0• OR Annual Income

Requirement (alternative)

€100,000

26 MVRP in a NutshellApplication Forms + Documents + Administrative Fee

Due Diligence Phase

Property + Investment + Contribution + Comprehensive Health Cover

Compliance with Ongoing Obligations

27 Submission of MVRP Application Forms + Documents (fully complete and in the required format) On acceptance for processing Identity Malta issues Invoice for

Administrative Fee Forms (1) Application Forms : MRVP1 for Main Applicant (to be

sworn/affirmed before a Commissioner for Oaths and apostilled) MRVP4 for Dependants; (2) Administrative Forms : (i) Form MRVP2 (Personal Details, and Source of Funds and Wealth for Main Applicant), MRVP3 (Medical Report) and MRVP6 (Clearance Form)

Original Supporting Documents (except where certified true copies of originals are permissible) + authenticated English translationsExamples : Birth / Marriage / Police Conduct Certificates; Bank Statements etc.

Certified copies of documents and authenticated translations need to be legalised by Apostille (Hague Convention 1961) unless done in Malta

28 Administrative Fee€5,500 payable on Application

Non-Refundable

on account of Contribution

29 Letter of Approval in Principle

Conditions to be

satisfied

Letter of Approval

in Principle

Due Diligence

Phase

30 Qualifying PropertyPurchase of Residential Property at minimum consideration €320,000 or Lease of Residential Property at minimum annual rent of €12,000

to be held for a minimum of 5 years from date of Certificate

31 Qualifying Investment

In the form of Malta Government Stocks

Having an initial market value of €250,000

To be held for a minimum period of 5 years from date of Certificate

32 Financial Contribution

€30,000 one-time contribution

Payable to the Government of Malta

33 Comprehensive Health Cover

Full Hospital Coverage (EU)

Main Applicant and Dependants

€30,000 per person per annum

34 Indicative Timeline (months)

1

• Submission of Application and Supporting Documents to Identity Malta (including initial vetting of Application Pack by Identity Malta)

4• Completion of Due Diligence Phase by Identity Malta – Letter

of Approval in Principle issued

5• Payment of Contribution, satisfaction of Property and

Investment requirements and Comprehensive Global Health Cover

35 Indicative Timeline

6• Issuance of Residency Certificate / Letter of Invitation

6• Visit to Malta for Biometric Data to be captured

6• Issuance of E-Residence Cards to Main Applicant and

Dependants• (within 3 – 5 working days of capture of biometric data)

36 Ongoing Obligations

The Beneficiary is obliged to continue to meet the Conditions imposed by the Regulations

In particular the Beneficiary is to have left Malta either for 6 consecutive months or for 10 months cumulative in a 4 year period

Failure to do so could lead to the revocation of the Certificate

37 Revocation of Certificate If the Beneficiary becomes a Maltese, EEA or Swiss national If the Beneficiary becomes a Long-Term Resident in Malta If the Beneficiary ceases to satisfy the Investment and Property

requirements or any other conditions laid down If the Beneficiary’s continued stay in Malta is not in the Public

Interest

38 Personal Income Tax Considerations The MVRP is not a tax programme The MVRP does not require a Beneficiary to become tax resident in Malta Once obtainted, the Certificate does not itself imply tax residency in

Malta A person only becomes tax resident in Malta if he physically spends 183

days + in Malta during any fiscal year (“Ordinary Residence”) A Person who is Ordinarily Resident in Malta becomes liable to personal

tax in Malta on income earned in Malta and/or remitted to Malta (Ordinary Tax Rates apply)

A Person who is both Ordinarily Resident and Domiciled in Malta becomes liable to personal tax in Malta in respect of his worldwide income

39 Benefits

Residency Rights

No Prejudice to Dual

Citizenship prohibition

Visa Free Schengen

Travel

вопросы? Dr. Kevin F. Dingli Dr. Veronica Delicatakevin@dingli.com.mt veronica@dingli.com.mt