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.

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