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The Residence Programme Rules 2014

26.01.2015

The Residence Programme Rules, 2014 (“RPR”) were introduced by virtue of Legal Notice 270 of 2014 and came into force with effect from 1st July 2013. The RPR effectively replace the High Net Worth Individuals Rules applicable to EU/EEA/Swiss Nationals Rules.

An individual who is not a permanent resident of Malta and who is eligible to apply under the RPR must prove to the satisfaction of the Commissioner of Revenue (“the Commissioner”) that such individual satisfies all of the conditions set out in the factsheet.

Tax treatment

Individuals who qualify under the RPR are taxable at the rate of 15% on foreign source income remitted to Malta (remittance basis of taxation) with the possibility to claim double taxation relief, however, subject to the minimum annual tax liability referred to below. The income of a beneficiary, his spouse, and children not chargeable to tax under these Rules at the rate of 15% is chargeable at the rate of 35%. A minimum annual Malta income tax payment of €15,000 is payable by the individual.

Application procedure for the Residence Programme

An application for special tax status in terms of the RPR may only be submitted to the Commissioner through the services of a person that qualifies as an Authorised Registered Mandatory (Nexia BT is an Authorised Registered Mandatory in terms of the Rules) and on the prescribed application form. Besides, the application has a fee listed on the factsheet.

Continuing Conditions for the Residence Programme

The RPR provide for a list of continuing obligations that need to be satisfied by all successful applicants, being explained in the full document.

Click here to download The Residence Programme Rules 2014, in English.

Click here to download The Residence Programme Rules 2014, in Russian.