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How are new citizens in Malta taxed after successfully applying under the Malta Individual Investor (IIP) program?

My family and I have purchased residential property in Malta and have also invested in a few commercial property developments. However, the majority of our income will come from our salaries and assets owned in our home country. We are curious how we will be taxed if, after we apply, we successfully gain citizenship.

Answers

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    Dr James Scerri Worley

    Malta Individual Investor Programme Agent
    Answered on

    The IIP in itself does not really change the issue of taxation as the IIP gives a right to reside but not an automatic tax residence. If you do attain a tax residence in Malta, and assuming you do not get a domicile, you will be taxable in Malta on income arising in Malta, and income arising out of Malta which is remitted to Malta. Foreign income which is not remitted to Malta and foreign capital gains are not taxable. With regards to the property investments situated in Malta, these are taxable irrespective of whether you are resident or whether you are a citizen.

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    Dr Simon Xuereb

    Malta Individual Investor Programme Agent
    Answered on

    Whether or not you are taxed will depend on whether you spend enough time in Malta to be considered as tax resident both in terms of Maltese domestic law and also in terms of the double tax treaty (if any) between Malta and your home country. If you do not meet the threshold for acquiring tax residence or even if you do, but you would not be considered to be a resident under the terms of any applicable treaty, then you would likely not have any Maltese tax implications. However, this needs to be considered in detail depending upon your personal circumstances.

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