High net worth scheme to affect property in Malta

The Maltese government have
introduced a brand new ‘high net worth’ individuals scheme in the country to
replace the dated ‘permanent residence’ scheme that was suspended in early
2011.

Finance Minister Tonio Fenech
launched the scheme designed to attract people who want to do more than buy
property in Malta and that want to contribute to the local economy.

New high net worth rules for people buying property in Malta

The Times of Malta reports that ‘under the new rules, the property
bought by foreigners had to be worth a minimum of €400,000, up from the
previous minimum of €116,000.’

In addition, people buying
property in Malta under the scheme have to spend a minimum of 90 days per year
living in the country.

Mario Borg, from the Inland
Revenue Department, explained that EU nationals will have to spend a minimum of
€400,000 on a property in Malta or, alternatively, €20,000 a year in rent.  Applicants will also have to have
health insurance that is recognised across Europe and pay a €6,000 fee to cover
the ‘fit and property check’ to determine whether the applicant is ‘desirable’.

Different property rules for non-EU residents

There will be different rules for
people outside the EU wanting to buy property in Malta.  Non-EU residents will have to keep
renewing their visa every three months or, alternatively, enter into a contract
with the government with a financial bond of €500,000 and €150,000 per
dependent, to effectively ‘purchase permanent residency after five years.  Non-EU residents will have to pay a
minimum of €25,000 in tax each year.

The plans are designed to prevent
abuses to the existing rules which included non Cypriots buying property and
never visiting, hence not contributing anything to the local economy.