Category: Residency

The New Permanent Residence Programme came into effect at the end of March 2021.

What are the Key Defining Features of the Malta Permanent Residence Programme?

The Malta Permanent Residence Programme (MPRP) is open to all third country, non-EEA, and non-Swiss nationals, with sufficient financial resources.  

Once the application process has been successfully completed by ‘Residency Malta Agency’, applicants receive permanent residency immediately and an ‘eResidence’ card, that entitles them to live in Malta and to travel visa free throughout the Schengen Member States.

Features that set the MPRP apart from other routes, include:

• There is no need to learn Maltese as there is no language test to obtain Permanent Residence.
• English is an official language in Malta so all documents and government interactions will be in English.
• Permanent Residence is granted on successful completion of the application
• There are no minimum days to be spent in Malta.
• Children, regardless of age, can be included in the application, as long as they are unmarried and principally dependant on the main applicant.
• Dependant parents and grandparents may also be included in the application, effectively allowing 4 generations to be included in one application.
• Children born or adopted by the main applicant after the application approval date can also be included.

Requirements

An individual will need to make an investment consisting of the following:

• Physical Address in Malta
  • Purchase a property with a minimum value of €350,000, reduced to €300,000 if the property is situated in the South of Malta or Gozo, or
  • Rent a property, with a minimum rental cost of €12,000 per annum, reduced to €10,000 per annum if the property is situated in the neighbouring island Gozo or in the South of Malta.

AND

• Pay the non-refundable administration fee of €40,000

AND

• Make one-off Government contributions, as follows:
  • €58,000 – if the applicant rents a property, or
  • €28,000 – if the applicant buys a qualifying property and
  • An extra €7,500 per additional adult dependant (where applicable). This applies whether the applicant is buying or renting a property.

AND

• Donate a minimum amount of €2,000 to an NGO.

Payment timeframe:

• Initial Administration fee of €10,000
  • Due within one month of the application submission
  • Letter of approval, remainder of the Administration fee of €30,000
    • Due within two months of the application submission
  • 8 months to provide all due diligence and the payment of the Government contribution of either €28,000 or €58,000, to be paid.

The main applicant should have at least €500,000 of net assets in order to qualify, and €150,000 of the €500,000 must consist of financial assets. The financial assets, however, only have to be maintained for the first 5 years. The capital requirement of €500,000 will remain in force for as long as the individual wishes to remain on the programme.

Finally, health insurance only needs to cover Malta, not all EU countries. This may result in an annual reduction in the insurance premium.

How Dixcart Can Help?

Individuals interested in applying for the MPRP programme must do so through a registered approved agent. Dixcart is an approved agent, and offers a bespoke service to guide clients, every step of the way, through the MPRP process.

Additional Information

If you would like further information regarding MRVP in Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

This article has been prepared by Dixcart for the information of clients and associates. Whilst every care has been taken in its preparation, no responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time.

The UK offers several popular visa options for entrepreneurs and businesses based outside the UK, who are looking to set-up and run a business in the UK.

The Sole Rep Visa Category – Key Points

The Sole Rep visa allows an overseas parent company to send a senior employee to the UK to establish its first UK branch or wholly owned subsidiary. To be eligible, some of the key requirements to be met include:

• the main applicant cannot have a majority stake, own or control the overseas business under any arrangement – this also applies to the main applicant’s dependent partner (if also applying)
• only genuine applicants can apply
• the overseas parent company will need to continue to have its headquarters and principal place of business outside the UK
• both the overseas parent company and the intended UK branch or wholly-owned subsidiary must be actively trading in the same type of business
• the applicant needs to have the skills, experience and knowledge of the business necessary to undertake the role and have full authority to negotiate and take the operational decisions on behalf of the business
• the applicant will not engage in business of their own nor represent any other business’ interest in the UK

A Snapshot of the Start-up and Innovator Visa Categories

The Start-up and Innovator visas (which replaced the former Tier 1 (Entrepreneur) visa category on 29 March 2019), allows entrepreneurial applicants, who have had their business idea assessed and approved by an endorsing body as being innovative, viable, and scalable, to set-up and run their business or businesses in the UK. Some of the key requirements include:

• applicants must be the sole founder or an instrumental member of the founding team, relying on their own business plan, and responsible for executing the plan
• an Innovator visa applicant’s business, may have already started trading, but the applicant must be the sole founder or an instrumental member of the founding team
• the “viability” criteria requires the applicant’s business plan to be realistic and achievable based on the applicant’s available resources
• those applying for an Innovator visa must have initial capital of £50,000

Permanent Settlement in the UK

Although the Start-up visa does not permit applicants to apply for permanent settlement, the Innovator visa does allow this option after 3 years. Similarly, the Sole Rep category is a route to permanent settlement, but after 5 years.

Are There Any Other Changes on the Horizon?

A number of new visa announcements were made in the UK Budget of March 2021, to encourage investment into, and growth for business – particularly in the fields of academia, science, research and technology. These include:

• the introduction of an elite points-based visa by March 2022
• the launch of the new Global Business Mobility visa category (which may be a replacement of the Sole Rep route) by spring 2022 for overseas businesses to establish a presence or transfer staff to the UK

Summary

The above is a general overview of some of the popular options and key requirements. If you have any questions and/or would like tailored advice on any UK immigration matter, please speak to Dixcart Legal at: advice.uk@dixcart.com or to your usual Dixcart contact.

When people talk about moving to the UK, many people want to apply for “permanent residence” at the start of their UK immigration journey. In most cases, this is not possible – an application for settlement or indefinite leave to enter/remain usually requires a minimum residence period in the UK of between 2 and 5 years depending on the visa category.

The Importance of the Visa Category Selected

It is very important to choose an appropriate visa category which allows you to do what you want to do in the UK, as well as eventually being able to apply for settlement (if that is an objective).

For instance, both the Skilled Worker and Intra-Company Transfer categories allow individuals to work in the UK; however, only individuals in the Skilled Worker route will be eligible to apply for settlement after 5 years, if they meet all the requirements.

An important requirement is that employers continue to hold a valid sponsor licence. Organisations will be aware that a sponsor licence is valid for 4 years, and they will have diarised to renew their sponsor licence. Without a valid sponsor licence, the individual will not be eligible to apply for indefinite leave to remain, and may be unlawfully working.

Absences from the UK

Another vital requirement, not just in the Skilled Worker category but for most routes eligible for settlement, is that individuals cannot be absent from the UK for more than 180 days in any rolling 12 month period, during the minimum residence period. There are exceptions which might apply, and some visa categories even allow specific work-related absences to be discounted from the “180 day rule”.

It is also not just the responsibility of Skilled Worker migrants to keep a track of their absences, but sponsors also have a duty to keep a record. In reality, many employers and HR staff already keep a record in the personnel files for each member of staff. In addition, employers are required to confirm in writing to the Home Office, that the individual is still required for work for the foreseeable future, and will be paid the minimum salary.

Are there Visa Categories Where the Minimum Residence Period is Less Than 5 Years?

There are a number of visa categories that allow individuals to apply for settlement in less than 5 years if all the requirements are met, for instance:

Visa Category	Minimum Period of Residence in the UK
Tier 1 (Investor) – £5 million investment	3 years
Tier 1 (Investor) – £10 million investment	2 years
Innovator	3 years
Global Talent (depending on sub-category and endorsing body)	3 years

Is it Possible to Combine Time Spent in Another Visa Category?

Depending on the individual’s current and previous visa categories, it may be possible to combine time spent continuously in the UK, to meet the relevant minimum residence period. For instance, if an individual has spent a continuous period of 5 years in the UK, with 3 years in the Sole Rep category, and subsequently 2 years in the Skilled Worker category, then the minimum 5 year residence period is met. However, the same minimum residence period is not met if combining 2 years on a Student visa and 3 years in the Skilled Worker category.

There is also the Long Residence rule which means individuals who have continuously and lawfully lived in the UK for 10 years, can combine all their different UK visas to become eligible to apply for settlement. Under the Long Residence rules, the Home Office currently state that absences from the UK cannot be more than 540 days.

Conclusion

The rules to become eligible to apply for settlement in the UK will be different for each individual, dependent on their own immigration circumstances. Employers/sponsors should ensure that key dates are diarised to ensure appropriate steps are taken at the correct time, and that good records are kept.

Further information

If you have any questions and/or would like tailored advice on any UK immigration matter, please speak to Dixcart Legal at: advice.uk@dixcart.com or to your usual Dixcart contact.

A move of residence can provide opportunities to review your affairs and holding structures. There may well be potential to implement wealth preservation and inheritance provisions, and advantageous strategic investment structures.

Every jurisdiction is different. There will always be some specific items to consider before relocating and taking bespoke professional advice at an early stage will always be the right thing to do. Carefully considered pre-exit and pre-arrival planning is essential to ensure a smooth and efficient move.

Please see below a comprehensive checklist that every individual and their family need to consider before relocating.

PRIOR TO ARRIVAL IN NEW COUNTRY

Consider Practical Issues	Travel documents (visas) Formal enrolment in country/jurisdiction of ‘arrival’, including communication with tax authorities, healthcare, schooling, etc.
Succession and Inheritance	Confirm which laws govern succession and whether a choice of different jurisdiction law is available. Confirm whether marital/family laws are affected and whether a choice of different jurisdiction law is available. Review estate planning documents (wills, succession, and prenuptial documents) and consider the interaction of wills, appropriate for different jurisdictions.
Implications of Transferring Physical Wealth	Family heirlooms, jewellery and works of art (possible ban on export or right of first refusal, etc.). Are import duties applicable?
Before Exit	Confirm arrangements that affect heirs and family that remain behind. Optimal timing of loss of tax residence and exit charges. Consider establishing new banking arrangements to segregate income and gains, if this is relevant to the new residence regime.
Before Arrival	Seek early tax advice from a professional advisor. Take advantage of any special tax regimes that are available. Review if there are any changes to controlled foreign company rules and what the effects may be. Ensure that previously established companies, trusts, life insurance policies, etc. are compliant.
Gifts and Donations	Confirm whether gifts or donations should be executed in advance of acquiring a new residency.
ONGOING	Annual review of estate planning documents (wills, succession, and prenuptial documents). Annual review of trusts arrangements, structures, and bank accounts. Annual review of any changes to tax laws and implications in relation to existing agreements and structures.

There are many reasons why individuals and their families choose to take up residence in another country. They may wish to start a new life elsewhere, in a more attractive and relaxing environment, or they may find the greater political and economic stability that another country offers, of appeal.

For individuals considering an alternative country of residence, the most important decision is where you and your family would like to live. It is critical that clients consider the long-term objectives for themselves and their family before applying for a particular residence to help make sure that the decision is right for now and in the future.

If you would like to talk to one of our experts, please contact: advice.domiciles@dixvcart.com. Alternatively, please contact your usual Dixcart contact.

‘Digital nomadism’ has never been so topical.

Over recent years the concept of remote working has become an every day reality. Technology has improved and the way the workplace is structured is changing; a new culture of working from home is being adopted by a lot of companies, especially as a result of the Covid-19 pandemic and stay-at-home requirements enforced by many countries around the world. 

There are numerous countries around the world offering Digital Nomad visas. Three of the most popular countries are; Cyprus, Malta, and Portugal – here is why.

CYPRUS

From January 2022, Cyprus is launching a Digital Nomad Visa for non-EU nationals wishing to work remotely for employers/clients based outside of Cyprus. Individuals who are self-employed, salaried, or on a freelance basis, can apply for the right to live and work in Cyprus.

Individuals who apply for the Cyprus Digital Nomad visa will have the right to stay in Cyprus for a period of up to 1 year. They can renew the visa for another 2 years, if required.

Cyprus is an attractive destination for individuals; it is a member of the EU, located in the eastern Mediterranean Sea and enjoys over 320 days of sunshine per year, it offers the warmest climate in Europe, has a good infrastructure and a convenient geographic location for internationally mobile individuals – it is easily accessible from in Europe, Asia, and Africa.

The population of Cyprus is approximately 1.2 million, with 180,000 foreign nationals living in Cyprus. It offers an excellent private healthcare sector, a low cost of living, and a friendly expat community.

As an incentive to attract and retain highly-skilled and highly-paid expats to Cyprus, foreign workers (for example, non-dom tax residents), do not need to pay taxes on international dividends, ‘passive’ interest income, or profit from the sale of securities.

In addition, individuals who were not previously resident in Cyprus, but who take up residence in Cyprus for work purposes, and earn over €100,000 per annum, are entitled to the following tax benefit:

• 50% of employment income earned in Cyprus is exempt from income tax for a period of 10 years.

However, the proposal for 2022 (the relevant legislation has not yet been implemented) is to allow an income tax exemption of 50% to new resident employees with income of €55.000.

MALTA

Malta has introduced a Nomad Residence Permit which enables individuals to maintain their current job in another country whilst they legally reside in Malta. The permit is targeted at non-EU remote workers and entitles them to reside in Malta for 1 year. After this, the visa can be renewed.

Malta offers the climate, the relaxed lifestyle and rich history to make living in Malta a real pleasure. Located in the Mediterranean, just south of Sicily, Malta offers all of the advantage of being a full member of the EU and Schengen Member States, has English as one of its two official languages, and a climate many chase all year round. Malta is also very well connected with most of the international airlines, which makes travel to and from Malta easy.

Since joining the EU and due to the forward-thinking Government actively encourages new business sectors and technologies, Malta’s economy has enjoyed large growth in recent years.

With a population of about 540,000 over an area of 316 square kilometres, Malta is already home to many expats and EU digital nomads. This community of ‘nomads’, enjoys Malta’s climate and lifestyle, and have already begun to interact with people with similar ideas, to add value to the community.

The Nomad Residence Permit in Malta opens up this opportunity to third country citizens, who would usually need a visa to travel to Malta. This permit lasts for 1 year and can be renewed at the discretion of Residency Malta, as long as the individual still meets the criteria.

Applicants for the Nomad Residence Permit must prove they can:

• Work remotely using telecommunication technologies, or
• Work for an employer registered in a foreign country and have a contract for this work, or
• Perform business activities for a company registered in a foreign country (and be a partner/shareholder of that company), or
• Offer freelance or consulting services, mainly to customers whose permanent establishment is in a foreign country, or
• Earn a monthly income of €3,500 gross of tax.

One of the biggest advantages of relocating to Malta is the remittance basis of taxation. Malta non-domiciled individuals are taxed on Malta source income and certain gains arising in Malta but are not taxed on non-Malta source income not remitted to Malta. In addition, they are not taxed on capital gains, even if this income is remitted to Malta.

PORTUGAL

Portugal’s temporary residence visa is particularly popular with freelancers and entrepreneurs; it is an independent workers and entrepreneurs visa available to individuals for 1 year. After this it can be renewed for up to 5 years. After 5 years, individuals have the option to apply for permanent residency in Portugal if they wish.

Portugal is located in the southwest of mainland Europe and is easily accessible in terms of travel to and from the rest of the world, which makes it very popular with international mobile individuals. The two islands of the Azores and Madeira are also autonomous regions of Portugal and, like the mainland, offers fantastic weather, a relaxed lifestyle, cosmopolitan cities, and stunning coastlines.

The Portuguese government is very aware of Portugal’s reputation as an international hub for digital nomads and, in response, launched a ‘Madeira Digital Nomads’ project, to attract foreign professionals to the island. Those taking advantage of this initiative can live in the Digital Nomad village in Ponta do Sol which boasts both villa or hotel accommodation, free wi-fi, coworking stations and regular social events.

For individuals who wish to live and work in Portugal, for example in Lisbon, Porto, or along the coast of the Algarve, there is also a large and established community to interact with. Lisbon is teeming with digital nomads, and Porto is the second most popular spot.

Portugal is an attractive and popular location – not only for digital nomads to move to – but for a large variety of individuals, in many different circumstances. Not only is it a beautiful country, offering an attractive lifestyle, but it also offers the popular Non-Habitual Residents programme (NHR), which allows individuals moving to Portugal to enjoy tax advantages once they re-locate here.

This has proven to be a major motivator for both EU and non-EU citizens. Provided they have not been resident in Portugal for the previous 5 years, they can enjoy non-habitual status for 10 years, whereby income derived from employment or independent personal services (from a domestic source) is taxed at a special flat rate of 20% provided the income is from high value-added activities or a scientific, artistic, or technical nature. In addition, a tax exemption might also apply to income derived from a foreign source.

Summary

Digital nomad visas and temporary residence permits have made travelling the world and working, easy and enjoyable. They provide new opportunities to individuals who can work remotely and independently of their location but continue to remain legally employed by their current employer. If you would like more information on applying for a Digital Nomad visa, please contact:

• Katrien de Poorter in our Cyprus office: advice.cyprus@dixcart.com
• Jonathan Vassallo in our Malta office: advice.malta@dixcart.com
• Catarina Sardinha in our Portugal offices (Lisbon and Madeira): advice.portugal@dixcart.com

Alternatively, please contact your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

Background

Many foreigners move to Switzerland for its high quality of life, outdoor lifestyle, excellent working conditions and business opportunities.

A central location within Europe with a high standard of living, as well as connections to over 200 international locations via regular international flights, also make Switzerland an attractive location.

Many of the world’s largest multi-nationals and international organisations have their headquarters in Switzerland.

Switzerland is not part of the EU but one of 26 countries making up the ‘Schengen’ area. Together with Iceland, Liechtenstein and Norway, Switzerland forms the European Free Trade Association (EFTA).

Residence

Foreign nationals are allowed to stay in Switzerland as tourists, without registration, for up to three months.

After three months, anyone planning to stay in Switzerland must obtain a work and/or residence permit, and formally register with the Swiss authorities.

When applying for Swiss work and/or residence permits, different regulations apply to EU and EFTA nationals, compared to other nationals.

EU/EFTA Nationals

EU/EFTA – Working

EU/EFTA nationals enjoy priority access to the labour market.

Should an EU/EFTA citizen want to live and work in Switzerland, they can freely enter the country but will require a work permit.

The individual will need to find a job and the employer must register the employment, before the individual can actually start to work.

The procedure is made easier if the new resident forms a Swiss company and is employed by it.

EU/EFTA – Not Working

The process is relatively straightforward for EU/EFTA nationals wanting to live, but not work, in Switzerland.

They must fulfil the following criteria:

• Have sufficient financial resources to live in Switzerland and to ensure that they will not become dependent on Swiss welfare.
• Take out Swiss health and accident insurance.

Non-EU/EFTA Nationals

Non-EU/EFTA – Working

Third country nationals are allowed to enter the Swiss labour market if they are appropriately qualified, for example managers, specialists and those with higher educational qualifications.

The employer needs to apply to the Swiss authorities for a work visa, while the employee applies for an entry visa from their home country. The work visa will allow the individual to live and work in Switzerland.

Again, this procedure is made easier if the new resident forms a Swiss company and is employed by it.

Non-EU/EFTA – Not Working

Non-EU/EFTA nationals, without gainful employment are divided into two categories:

1. Older than 55;

• Must apply for a Swiss residence permit through a Swiss consulate/embassy from their current country of residence.
• Provide proof of adequate financial resources to support their life in Switzerland.
• Take out Swiss health and accident insurance.
• Demonstrate a close connection to Switzerland (for example: frequent trips, family members living in the country, past residency or ownership of real estate in Switzerland).
• Abstain from gainful employment activity in Switzerland and abroad.

• Under 55;
• A residence permit will be approved on the basis of “predominant cantonal interest”. This generally equates to paying tax on deemed (or actual) annual income, of between CHF 400,000 and CHF 1,000,000. The precise amount of deemed annual income depends on a number of factors, including the specific canton in which the individual lives.

Taxation

Standard Taxation

Each canton sets its own tax rates and generally imposes the following taxes; income, net wealth, real estate, inheritance and gift tax. The specific tax rate varies by canton and is between 21% and 46%.

In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.

Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.

Lump Sum Taxation

Lump sum taxation is a special tax status, available to resident non-Swiss nationals, without gainful employment in Switzerland.

The taxpayer’s lifestyle expenses are used as a tax base instead of their global income and wealth. This means that it is not necessary to report effective global earnings and assets.

Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that particular canton.

It is possible for an individual to have gainful employment outside Switzerland and to take advantage of Swiss lump-sum taxation. Activities relating to the administration of private assets in Switzerland can also be undertaken.

Additional Information

If you would like additional information regarding moving to Switzerland, please contact Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com

Highly Qualified Persons Scheme – A Need for Additional Highly Qualified Individuals in Certain Sectors

Since joining the EU in 2004, Malta has been modernising its economy. It is becoming recognized as a high functioning, low cost, and well-regulated jurisdiction with an underlying theme being the availability of trained staff thanks to Malta’s high investment in education and training. The expansion of the financial, aviation and gaming sectors, since Malta joined the EU, and the associated increase in demand for technical skills has in recent years however, highlighted the need for additional highly qualified workers. There is a need to attract individuals with sufficient existing knowledge to Malta, particularly in these sectors of; financial services, gaming, aviation and the associated support services. The Highly Qualified Persons scheme was introduced to attract these individuals.

The objective of the Highly Qualified Persons Rules (SL 123.126), was the creation of a route to attract highly qualified persons to occupy ‘eligible office’, with companies licensed and/or recognized by the Competent Authority regulating the specific sector.

Benefits of the Highly Qualified Persons Scheme

This option is targeted at professional individuals, earning more than €86,938 in 2021, and seeking to work in Malta.

• The qualifying individual’s tax is set at a highly competitive flat rate of 15%, with any income earned over and above €5,000,000 being tax exempt.

The standard alternative in Malta, would be to pay income tax on a sliding scale, with a current maximum rate of 35%.

2021 Update of the HQPS in Malta

Changes were recently introduced in 2021 and were made retrospective as from 31 December 2020.

These changes consist of:

• The HQPS has been extended for five years.

No changes to the scheme will now be made until 31 December 2025. Some variations to the scheme might potentially be made to HQPS, for relevant employment in Malta that commences between 31 December 2026 and 31 December 2030.

• Individuals enjoying HQPS now have two different extension options, depending on their nationality: five years for EEA and Swiss nationals, and four years for third-countries nationals.

Definition of an ‘Eligible Office’

‘Eligible office’ in the financial, gaming, aviation and associated supporting services sectors, including any organisation holding an air operator’s certificate,  is defined as employment in one of the following positions:

• Actuarial Professional

• Aviation Continuing Airworthiness Manager

• Aviation Flight Operations Manager

• Aviation Ground Operations Manager

• Aviation Training Manager

• Chief Executive Officer

• Chief Financial Officer

• Chief Commercial Officer

• Chief Insurance Technical Officer

• Chief Investment Officer

• Chief Operations Officer; (including Aviation Accountable Manager)

• Chief Risk Officer; (including Fraud and Investigations Officer)

• Chief Technology Officer

• Chief Underwriting Officer

• Head of Investor Relations

• Head of Marketing; (including Head of Distribution Channels)

• Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)

• Odds Compiler Specialist

• Portfolio Manager

• Senior Analyst; (including Structuring Professional)

• Senior Trader/Trader

Other Applicable Criteria

In addition to individuals having a qualifying position, as detailed above,  individuals must also meet the following criteria:

• The applicant’s income must be derived from an ‘eligible office’, and must be subject to income tax in Malta.
• The applicant’s employment contract must be subject to Maltese Law and is for the purpose of genuine and effective work in Malta. This must be demonstrated to the satisfaction of the Maltese Authorities.
• The applicant needs to provide proof to the authorities that he/she has appropriate professional qualifications, and has at least five years’ professional experience.
• The applicant must not have benefitted from any other deductions available to ‘Investment Service Expatriates’, as detailed in the terms of Article 6 of the Income Tax Act.
• All salary payments and expenses must be fully disclosed to the authorities.
• The applicant must prove to the authorities that:
• He/she is in receipt of sufficient resources to maintain himself/herself and members of his/her family, without recourse to public funds.
• He/she resides in accommodation regarded as normal for a comparable family in Malta, which meets the general health and safety standards in force in Malta.
• He/she is in possession of a valid travel document.
• He/she possesses sufficient health insurance for himself/herself and members of his/her family.
• He/she is not domiciled in Malta.

Summary

In the right circumstances, the Highly Qualified Persons Scheme provides taxation advantages for professional high net worth individuals who want to move to Malta and work on a contractual basis there.

Additional Information

If you would like further information regarding the Highly Qualified Persons Scheme and opportunities available through Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

Background

Malta offers a variety of routes to residency. Some are appropriate for non-EU individuals while others provide an incentive for EU residents to move to Malta.

The residence options and the tax benefits they can provide for individuals, where relevant, are detailed below.

1. Malta Permanent Residence

Malta Permanent Residence is available to non-EU individuals and enables them to reside indefinitely in Malta.

Successful applicants receive Permanent Maltese residence immediately and a 5 year residence card. The card is renewed every 5 years if the requirements are still being met. There are two options with regards to this route:

Option 1: Rent a property and pay the full contribution:

• Pay the €40,000 non-refundable administrative fee; AND
• Rent a property with a minimum of €12,000 per year (€10,000 if the property is situated in Gozo or the south of Malta); AND,
• Pay the full Government contribution of €58,000; AND
• Make a donation of €2,000 to a local philanthropic, cultural, scientific, artistic, sport or animal welfare NGO registered with the Commissioner of Voluntary Organisations.

Option 2: Purchase a property and pay a reduced contribution:

• Pay the €40,000 non-refundable administrative fee; AND
• Purchase a property with a minimum value of €350,000 (€300,000 if the property is situated in Gozo or the south of Malta); AND,
• Pay the reduced Government contribution of €28,000; AND
• Make a donation of €2,000 to a local philanthropic, cultural, scientific, artistic, sport or animal welfare NGO registered with the Commissioner of Voluntary Organisations.

It is possible to include up to 4 generations in one application if it can be proven that the additional applicants are principally dependant on the main applicant.

An additional Government Contribution of €7,500 is required for each additional adult dependant (excluding the spouse) included in the application.

Applicants must show capital assets of not less than €500,000, out of which a minimum of €150,000 must be financial assets.

2. Global Residence Programme

The Global Residence Programme entitles non-EU nationals to obtain a special Malta Tax Status and Maltese residence permit through a minimum investment in property in Malta.

Successful applicants can relocate to Malta if they choose to do so. They also have the right to travel to any country within the Schengen Zone of countries without the need for an additional visa(s). There is no minimum day stay requirement, however successful applicants may not reside in any other jurisdiction for more than 183 days per year.

To qualify, an individual must purchase property costing a minimum of €275,000 or pay a minimum of €9,600 per annum in rent. If the property is in Gozo or the south of Malta the minimum property value is €250,000 or €220,000 respectively, or a minimum rent payment of €8,750 per annum is required. In addition, an applicant must not spend more than 183 days in any other jurisdiction in any single calendar year.

• Tax Advantages Available to Individuals – Global Residence Programme

A flat rate of 15% tax is charged on foreign income remitted to Malta, with a minimum amount of €15,000 tax payable per annum (income arising in Malta is taxed at a flat rate of 35%). This applies to income from the applicant, his/her spouse and any dependants jointly.

Foreign source income not remitted to Malta is not taxed in Malta.

Individuals may also be able to claim double taxation relief under the regime.

3. The Malta Residence Programme

The Malta Residence Programme entitles EU nationals to obtain a special Malta Tax Status and Maltese residence permit through a minimum investment in property in Malta.

To qualify for the scheme an individual must purchase property costing a minimum of €275,000 or pay a minimum of €9,600 per annum in rent. If the property is in Gozo or the south of Malta the minimum property value is €250,000 or €220,000 respectively, or a minimum rent payment of €8,750 per annum is required. In addition, an applicant must not spend more than 183 days in any other jurisdiction in any single calendar year.

There is no minimum day stay requirement, however successful applicants may not reside in any other jurisdiction for more than 183 days per year.

• Tax Advantages Available to Individuals –The Malta Residence Programme

A flat rate of 15% tax is charged on foreign income remitted to Malta, with a minimum amount of €15,000 tax payable per annum (income arising in Malta is taxed at a flat rate of 35%). This applies to income from the applicant, his/her spouse and any dependants jointly.

Foreign source income not remitted to Malta is not taxed in Malta.

Individuals may also be able to claim double taxation relief under this route.

4. Highly Qualified Persons Programme

The Highly Qualified Persons Programme is directed towards professional individuals earning over €86,938 per annum (basis year 2021), employed in Malta on a contractual basis.

This route is open to EU nationals for 5 years (may be extended 2 times – 15 years in total) and to non-EU nationals for 4 years (may be extended 2 times – 12 years in total. A list of qualifying positions is available on request.

• Tax Advantages Available to Individuals – Highly Qualified Persons Programme

Income tax is set at a flat rate of 15% for qualifying individuals (instead of paying income tax on an ascending scale with a current maximum top rate of 35%).

No tax is payable on income earned over €5,000,000 relating to an employment contract for any one individual.

5. Retirement Programme

The Malta Retirement Programme is available to EU and non-EU nationals whose main source of income is their pension.

An individual must own or rent a property in Malta as his/her principal place of residence in the world. The minimum value of the property must be €275,000 in Malta or €220,000 in Gozo or south Malta; alternatively, property must be leased for a minimum of €9,600 annually in Malta or €8,750 annually in Gozo or south Malta.

In addition, there is a requirement for an applicant to reside in Malta for a minimum of 90 days each calendar year, averaged over any 5-year period. Individuals must not reside in any other jurisdiction for more than 183 days in any calendar year during which they benefit from the Malta Retirement Programme.

• Tax Advantages Available to Individuals – The Retirement Programme

An attractive flat rate of 15% tax is charged on a pension remitted to Malta. The minimum amount of tax payable is €7,500 per annum for the beneficiary and €500 per annum for each dependant.

Income that arises in Malta is taxed at a flat rate of 35%.

6. Key Employee Initiative

Malta’s ‘Key Employee Initiative’ is available to non-EU passport holders and is applicable to managerial and/or highly technical professionals with relevant qualifications or adequate experience relating to a specific job.

Successful applicants receive a fast-track work/residence permit, which is valid for one year. This can be renewed annually.

Applicants must provide proof and the following information to the ‘Expatriates Unit’:

• Annual gross salary of at least €30,000 per annum.
• Certified copies of relevant qualifications warrant or proof of appropriate work experience. Declaration by the employer stating that the applicant has the necessary credentials to perform the required duties.

• Tax Advantages Available to Individuals

The standard Remittance Basis of Taxation apply. Individuals that intend to stay in Malta for some considerable time but do not intend to permanently establish themselves in Malta, will be classified as resident but not domiciled in Malta. Income earned in Malta is taxed on a progressive scale with a maximum rate of 35%. Non-Malta sourced income not remitted to Malta or Capital remitted to Malta are not taxed.

7. The Qualifying Employment in Innovation & Creativity

This route is targeted towards certain professional individuals earning over €52,000 per annum and employed in Malta by a qualifying employer on a contractual basis. The applicant can be a national of any country.

This routeis available for a consecutive period of not more than 3 years.

• Tax Advantages Available to Individuals

Income tax is set at a flat rate of 15% for qualifying individuals (instead of paying income tax on an ascending scale with a current maximum top rate of 35%).

8. Nomad Residence Permit

The Malta Nomad Residence Permit enables third country individuals to maintain their current job in another country, whilst they legally reside in Malta. The permit can be for a period of between 6 and 12 months. If a 12 month permit is issued then the individual will receive a residence card which allow for visa-free travel throughout the Schengen Member States. The permit may be renewed at the discretion of the agency.

Applicants for the Nomad Residence Permit must:

1. Prove they can work remotely using telecommunication technologies
2. Be third country nationals.
3. Prove they work in any of the following categories:
   • Work for an employer registered in a foreign country and have a contract for this work, or
   • Perform business activities for a company registered in a foreign country, and be a partner/shareholder of said company, or
   • Offer freelance or consulting services, mainly to customers whose permanent establishment is in a foreign country, and have supporting contracts to verify this.
4. Earn a monthly income of €2,700 gross of tax. If there are additional family members, they will each have to satisfy the income requirements as specified by the Agency Policy.

• Tax Advantages Available to Individuals

Successful applicants will not be taxed on their income as the income will be taxed in their home country.

How Can Dixcart Assist?

Dixcart can assist in providing advice as to which route would be most appropriate for each individual or family. We can also organise visits to Malta, submit the application , assist with property searches and purchases, and provide a comprehensive range of individual and professional commercial services once relocation has taken place.

Additional Information

For further information about moving to Malta please contact Jonathan Vassallo: advice.malta@dixcart.com at the Dixcart office in Malta. Alternatively, please speak to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

Why Switzerland?

There are many reasons why Switzerland is a desirable country to live in.

• A high standard of living with excellent working conditions and business opportunities.
• Beautiful scenery and an active outdoor lifestyle.
• A central location within Europe, with flight connections to over 200 international locations.

Non-Swiss nationals are allowed to stay in Switzerland as tourists, without registration, for up to three months. After three months, anyone planning to stay in Switzerland must obtain a work and/or residence permit, and formally register with the Swiss authorities.

How to Become a Legal Swiss Resident

There are two alternative routes to become a Swiss resident:

• By working in Switzerland
• Through the Swiss ‘Lump Sum System of Taxation’

Working in Switzerland

The acquisition of a Swiss work permit allows a non-Swiss national to become a Swiss resident.

There are three ways to be entitled to work in Switzerland:

• Being hired by an existing Swiss company.
• Forming a Swiss company and become a director or an employee of the company.
• Investing in a Swiss company and become a director or an employee of the company.

When applying to work in Switzerland and/or for residence permits, different regulations apply to EU/EFTA nationals, compared to nationals of other countries.

It is a straightforward process for EU/EFTA citizens as they enjoy priority access to the labour market in Switzerland.

Non-EU/EFTA nationals can work in Switzerland as long as the are appropriately qualified, for example managers or specialists and/or with higher education qualifications.

An alternative route is for non-Swiss nationals to form a Swiss company and obtain a residence permit in Switzerland. Relevant individuals must be employed by the company that they establish in Switzerland.

Non-EU/EFTA businesses need to create jobs and business opportunities in Switzerland, as specified by each particular canton.

Lump Sum Taxation

A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency under the system of ‘Lump Sum Taxation’.

• The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no report of global earnings and assets.

Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that particular canton.

Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.

Third country nationals (non-EU/EFTA), may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on a number of factors and varies case by case.

How can an Individual Become a Swiss Citizen?

• An EU or non-EU/EFTA national must have lived in Switzerland for at least 10 years, to be able to apply for a Swiss passport.
• However, if an EU or non-EU/EFTA national is the spouse of a Swiss national, they need only to have lived in Switzerland for 5 years.

Additional Information

If you require additional information regarding moving to and living in Switzerland, or have any other questions about this jurisdiction, please contact Christine Breitler or Thierry Groppi at the Dixcart office in Switzerland: advice.switzerland@dixcart.com.