Tax-friendly retirement/tax residence scheme survives 2004 amendments
In October 2004, the much awaited Residents Scheme Regulations came into force in the form of Legal Notice 428 of 2004. This legal notice included a number of provisions to cut down on abuse of the Permanent Residence Scheme. Following the amendments, the first payment of tax is paid as an advance provisional payment of tax on account of the tax liability of the first year of residence.
Moreover, the administration of the Scheme has now moved to the specialised Expatriates Division of Maltese Tax Department to provide for a seamless service to foreigner taking up residence in Malta. This one-stop-ship approach means that all local tax professionals representing foreign residence permit holders, whether living in Malta or not (the Scheme does not impose minimum stay requirements), are now serviced efficiently by one and the same department.
The minimum tax liability imposed by the Scheme has therefore remained unchanged as have all other qualifying conditions of the Scheme. This is a sign of Malta’s commitment to attracting foreign individuals of good standing and of a level of financial wealth to purchase holiday homes in Malta and/or to retire in Malta or its smaller sister island, Gozo.
For more information about the Malta Residence Scheme, click on the links on the left hand menu of this page.