The Government of Malta has introduced a new Tax Scheme intended to attract more wealthy individuals to relocate to Malta. A new reduced tax rate of 15% has been introduced for those individuals who earn a minimum annual income of just under £70,000 for activities carried out in Malta. For those whose income exceeds £4.4 million the excess will be exempt from tax.
The reduced rate of tax applies for five consecutive years for EU nationals.
The new Income Tax Scheme was introduced at the beginning of 2011 and will complement the existing company tax incentive schemes already in place.
An increasing number of both foreign companies and individuals have relocated to Malta in recent years in order to take advantage of the low tax incentives available. The country has also in place double taxation treaties with over 40 countries with more set to be signed in the near future.
Such tax schemes are expected to further increase foreign interest in the Maltese property market which has seen a renewed increase in demand in recent months. Advertised property prices for sale in Malta have increased in the last 3 financial quarters, with apartments for sale recording the highest increase in the property market.
Posts
