Malta and uae slash residency requirements

Photo: Andrea-S

Malta has replaced its previous scheme with the Global Residency Programme, which requires investors to splash just €220,000 on the island's property market, almost half the former threshold of €400,000 (part of the High Net Worth Individual Rules for EU nationals).

The €220,000 requirement applies to real estate bought in Gozo of the south, while the mainland requires a slightly higher €275,000 spend.

Now, the rates are the same for both EU and non-EU buyers, even extending to the annual rental of a property for €9,600 (Malta) and €8,750 (Gozo). For new residents, foreign income brought to Malta will be subject to a 15 per cent levy and domestic income will be subject to a tax of 35 per cent, subject to a mimum annual tax liability of €15,000.

Indeed, Nick Bilocca, Marketing Manager of agency, tells OPP Connect: "The key reason people choose the scheme is for tax benefits. If you are a High Net Worth Individual paying 55 per cent tax, you can take on this programme and pay 15 cer cent. Investing in a property would pay for itself from tax saving over time."

"This is definitely going to have an impact on the property market, as it is much more affordable for people," she added.

Property visa costs have also been cut by almost 50 per cent in the UAE, according to Emirates 24/7, which reports that as of 1st August 2014, a six-month visa is sold for AED1,100, down from AED2,000. Foreign buyers will still be required to own a home valued at least AED1m - the equivalent of a €210,283 home - and have a monthly income of at least AED10,000 (€2,102).

If UAE residency is affordable, though, even that pales in comparison to Malta's offering: the island's scheme is now one of the most affordable entry points for any visa in the EU, particularly compared to Spain and Portugal's €500,000 minimum thresholds, which are designed to woo buyers from China to their shores.