in Malta since 2006 and having roots established for the past 27 years in:
London - Canada - Bermuda and the Caribbean.
Salt Partners (Services) Limited, a Company Service Provider, is fully licensed and authorised
to act as a Trustee by the Malta Financial Services Authority.
Tel. +356 2701 1727 • Fax. +356 2141 9307
Relocating to Malta has proved to be a popular choice for certain types of individuals and businesses in recent years. Whether you are a self-sufficient individual or family, represent a company with international operations or are a law firm that represents these types of clients, the following information will provide an overview of the situation.
Why Relocate to Malta?
The country has played an important strategic role over the centuries because of it's location in the centre of the Mediterranean Sea. While it is closest geographically to Sicily, it is also close to North Africa and sits on a path that shipping lanes to and from the Middle East have used for centuries.
This location has made the Maltese a pragmatic people that are used to working and trading with other people from around the world. It has also made the country desirable to others, which explains why it has been a possession of other nations.
Malta is now a full member of the European Union and uses the euro currency. When combined with it's historical relationship with the United Kingdom and the traditions that the UK has left behind, this small country has a powerful role to play in world trade.
The Maltese speak English very well and business can be conducted entirely in English if desired, or in Italian in many companies. The legal system is based on English law and is now, of course, compliant with the rules of the EU. This adds an extra level of comfort when doing business locally.
Not only is Malta within the EU, but it is also a member of the Schengen area. This means that borders are essentially open once inside. EU citizens are able to move, visa free, to live and work in the country as a resident. Legally, an Identity card is required, but for Europeans from an EU Member State, there are no special work permits or visa applications required.
Since joining the EU, many nationals of other European countries have moved to the island. There are now substantial populations from Sweden, Germany, Finland and Great Britain. There are also smaller numbers of people that have taken up Maltese residency from the Baltic states and central and Eastern Europe.
Many people move because they have some form of income that makes this possible. For individuals or families that have sold a business, have royalty payments or a retirement income, moving to Malta can be a low cost lifestyle choice and a tax efficient strategy.
There is now a wide range of such individuals that reside 1 in Malta because of these rules. It is not unusual to meet online entrepreneurs running a business virtually, authors, property investors and developers and expats that are retiring early.
There is more than one set of rules in place, enabling permanent residents (via the High Net Worth Individual scheme) to pay pre-set rates of personal income tax if they meet the required criteria. This is obviously an incentive to relocate and we will be happy to explain the rules in full for you.
Personal taxation can be a complicated topic at best in most countries, so it is not possible to offer tax advice in this article, but on a general level, the Maltese system is friendly to individuals with an income that is generated abroad. We will be pleased to discuss your current situation to investigate whether relocating and Maltese residency can be fiscally beneficial to you or your clients.
Citizenship in Malta
Under Legal Notice 47 of 2014, the Maltese government has created an Individual
Investor Programme which enables non-Maltese citizens to apply for residence,
leading to citizenship. The process requires individuals to apply via an accredited
agent for a residence certificate. After a qualifying period of twelve months
and the fulfilment of stringent criteria, including a contribution to the National
Development and Social Fund, the process leads to naturalisation.
During the twelve month qualifying period, applicants must
prove that they have established an economic and social link
to the island. Individuals that qualify for citizenship will
not automatically become resident or domiciled in Malta for
taxation purposes, this status will relate to their existing
personal financial circumstances.
A Maltese passport is valid for a period of ten years. As
a member state of the European Union and Schengen Zone, this
document enables citizens to travel and establish residence
throughout the EU under EU movement rights. The scheme has
provisions that enable a spouse, dependent children aged up
to 26, dependent adults, aged 55 or over, to join the principal
applicant, if all criteria are met. It offers visa free travel
to more than 160 countries.
The acquisition of Maltese citizenship under the IIP may not have any tax consequences; even if one's residence is moved to Malta, one may still retain the status of a non-domiciled person as long as a permanent home and sufficient links are retained to the individual's domicile of origin. The Inland Revenue considers an individual's domicile to be the territorial unit that regulates such things as his/her marriage, succession and legal capacity in general.
There are no restrictions on dual citizenship in Malta. One can have dual nationality but not more than one domicile at a time. A person may have a domicile in one country while maintaining nationality in another country.
Applications to this scheme must be made through either a Concessionaire,
Accredited Persons or Approved Agents. These status are granted
by the Identity Malta Agency2.
Salt Partners Limited is proud to announce that our Managing Director, Tracy Lange, is an accredited person under the IIP Scheme by Identity Malta. We will be pleased to discuss your individual circumstances and potential eligibility in a private discussion.
There are good reasons for companies to relocate to Malta. As mentioned above, the country has an English speaking workforce, a legislative environment that is both British and European, a low cost of operation and a competitive taxation policy.
There are also rules that enable foreign domiciled companies to pay reduced
rates of Corporation Tax. To help transition into this new environment, Salt
Partners can handle company and trust formations for a number of jurisdictions
including the BVI and Turks and Caicos Islands. We are also able to make
the formation of your Maltese company quick and easy.
Why Use Salt Partners Relocation Services?
For individuals, families and companies, there are some intricate steps that need to be taken to ensure compliance with the local rules. These steps are no more complicated than in most other countries, but it is important to get things right from the outset to prevent problems in the future.
At Salt Partners, we have a history of providing relocating services to smooth this process and ensure that there is as little time and energy lost in the process as possible. It is often the case that expatriation happens at inopportune moments, such as the sale of a business. We are used to working under pressure and can help to make the transition as gentle as possible.
Once the move is completed, we provide ongoing administration services for trusts and companies to ensure compliance with the relevant local legislation. We encourage you to contact us to discuss the specifics of your situation. We will be pleased to offer both the high level strategic and more practical advice that you require.
As discussed above, we will also be pleased to discuss confidentially your personal circumstances as they relate to an investment to obtain citizenship and the application process for you and your immediate family. Since residency leading to citizenship are just two elements of relocating, we look forward to a wide ranging conversation including the relocation services that we offer.