THE GLOBAL RESIDENCE PROGRAMME IS LAUNCHED

Reference Number: PR1151, Press Release Issue Date: Jun 01, 2013
 
A Programme that will give a strong boost to various economic sectors of Malta
 
Parliamentary Secretary for Competitiveness and Economic Growth Hon. Dr Edward Zammit Lewis launched the Global Residence Programme whereby people who buy high value property and who pay taxes, would be able to benefit from a residence permit in Malta.
 
The Global Residence Programme was launched this morning in a presentation to the stakeholders that are involved in this field. Hon. Dr Zammit Lewis said that this programme will give a strong boost to various economic sectors leading to Economic Growth. The Global Residence Programme will be revitalizing the property sector by increase property purchase in our country, 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 and it will also help the Financial Services industry, the leisure and hospitality industry.
 
The Global Residence Programme, which will be replacing a scheme which was introduced by the previous Government, introduces more certainty and facilitates the process which existed until today. The programme’s guides that are being submitted today are much more attractive because they act as very good incentives for persons outside the European Union and outside the European Economic Area who want to invest in our country.
 
The Government intends to introduce the relative subsidiary legislation by no later than the end of June 2013. This new 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.

This initiative effectively reduces the thresholds for the purchase of immovable property and even those renting a property in Malta for those foreigners who wish to buy property in our country. 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.
 
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.
"This is another promise delivered by the New Government in a very short period of time. We are doing this because we believe in Economic Growth and because we believe in the potential that our country offers. This is another positive sign resulting from responsible administration which has clear priorities for our country, “said Hon. Dr Zammit Lewis.
 
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.
 
After this stage the Global Residence Programme was compiled by a specifically set committee chaired by the Hon. Dr Edward Zammit Lewis and also composed of Dr Charles Mangion, Mr. Aldo Farrugia from the International Tax Unit, Mr. Mario Borg from the Inland Revenue Department, Mr. Mark Sultana from the Department for Citizenship & Expatriate Affairs, Mr. John Huber from the Malta Chamber of Commerce, Enterprise and Industry and Mr. Sandro Chetcuti from the Malta Developers Association. 
 
Table 1.0 – Comparison of Previous Scheme and the new Global Residence Programme
 
 
 
 
 
HNWI
Global Residence Programme
 
 
Malta
Gozo
Malta (South)
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
 
*All figures are denominated in Euro