As from 2004, Malta forms part of the European Union and the Schengen Area respectively, hence the island heightened its strategic position in the Mediterranean as a state that offers opportunities to EU nationals that want to grow their business or simply relocate, by facilitating the process, due to common EU regulations. Malta has seen the highest economic growth within the EU in the last couple of years, that coupled with other factors make it an ideal location for an EU/EEA and Swiss national wanting to relocate or invest. Due to its’ local incentives and appropriate schemes, Malta is a destination that attracts business men and investors from all of Europe.
When a foreign national obtains tax residence in Malta he/she will be considered to be resident not domiciled in Malta for tax purposes and charged to tax on the following;
- Income and Capital Gains arising in Malta;
- Foreign income which is received in Malta.
Any Capital Gains arising outside of Malta are not taxed even if they are received in Malta.
There are a number of programmes designed for third country nationals wanting to obtain residence and/or tax residence in Malta.