Taking up residence in Malta, a tax perspective

Abstract

Purpose The purpose of this study is that of analyzing the tax implications of a foreign individual taking up residence in Malta as well as considering any changes which might be implemented to increase Malta's attractiveness to overseas nationals. Design The dissertation consists of an analysis on the subject matter in literature followed by the findings from several semi-structured interviews carried out with Tax Practitioners and Tax Partners in Audit Firms. Findings The general findings suggest that the provisions on tax contained in legislation are adequate and very effective. However, Malta is going through a transitory period with significant capital expenditure being undertaken in ICT and Financial Services; leading to an increased importance of attracting highly skilled expatriates in these sectors through attractive tax initiatives. Conclusions The general findings suggest that certain changes to current legislation were considered to be necessary in order to better reflect current market values as well as to increase the attractiveness of Malta to high net-worth individuals. Implications/Value These findings suggest that a review of the current Permanent Certificate Permit is required in particular with respect to the minimum thresholds of the regime. Similarly, there is a need for the introduction of measures which might attract highly-qualified expatriates in specific industries.