16Apr

Brexit – Malta – Rules for British Persons

16 April 2019 Acumum Legal & Advisory 53

Why Malta?

The Republic of Malta, a former colony of Great Britain until 1964 has since maintained a special relationship with the UK.

Added to which, as the only one of two European Commonwealth members, Malta’s relationship with the UK, is based on mutual cultural, legal, and economic understanding.

Accordingly, Legal Notice No. 63 of 2019 (“Legal Notice”) goes some way to protecting British persons resident in Malta before the Brexit withdrawal date – whenever that may be.

Who is included?

The Legal Notice sets out persons to whom these provisions will apply: “British Citizen” means a person who holds British Nationality under the British Nationality Act excluding those holding the following British nationality status:

British nationals (Overseas),
British overseas territories citizens (BOTC),
British overseas citizens (BOC),
British protected persons (BPP),
British subjects (BS)

As well as a British citizen who holds a valid certificate under the Residents Scheme Regulations, if such person within 2 years from UK’s withdrawal date, exchanges their status to the residency status under the Legal Notice.

Family Members?

The provisions of the Legal Notice will apply to established family members of British persons, even if that family member is not residing in Malta as of the withdrawal date. The above rules apply to children adopted or born after the withdrawal date to the British person.

In cases where the British person has died, or divorced or separated, the family member may still have the right to reside in Malta if they have the right to reside under the Free Movement of European Union Nationals and their Family Members Order.

Length of Residency Permit

10 years, renewable subject to the person continuing to meet the requirements set out in the Legal Notice.

Application Process

Applications are to be submitted to the CEO of Identity Malta. The CEO of Identity Malta shall refer all applications to the Principal Immigration Officer to ensure the application is not against the public interest.

Until approval of the application under this Legal Notice, the British person’s (and residing family members’) previous residency rights shall continue to subsist.

Benefits & Related Rights

Except for regulated professions, all rights held by the persons shall continue, prior to Brexit with access to:

Healthcare – if a worker or student
Healthcare entitlements – if covered by the S1 scheme (formerly residual E106),
Healthcare entitlements if self employed
Access to education – except that grants or loans may only be given to persons who have resided in Malta for at least 5 years prior to the withdrawal date.

Equal treatment on par with a Maltese citizen as to :

Recognition of educational qualifications – provided that an application is submitted prior to the withdrawal date to recognise diplomas, certificates and professional qualifications in accordance with Maltese legislation
Access to goods and services
Social benefits, provided that the person does not become a burden on the Maltese social assistance programme.

British nationals will also be able to exchange their UK driving license for a Maltese license without having to take the test.

Loss of Rights

The rights granted to British persons (and appropriate family members) will be lost if the beneficiary is absent from Malta for a continuous period of 2 years, not including:

Temporary absences of 6 months in a year
Absences due to compulsory military service
One absence of a maximum of 12 consecutive months due to important reasons such as pregnancy, serious illness, study or vocational training or a work positing outside of Malta
It is contrary to the public interest or public security
After the withdrawal date the beneficiary is found guilty of an offence and subject to imprisonment of 1 year or more, whether in Malta or abroad
Does not have sufficient funds, equivalent to the national minimum wage, to support themselves, or becomes a burden on the Maltese social assistance system
No application for the Brexit Permit is received within 2 years of the withdrawal date
Concealment of any material fact, by way of fraud, false representation
Beneficiary is spouse or partner who is a 3rd country national, whom after the withdrawal date divorces or separates from the British citizen within 3 years of the marriage or registration of the partnership
A de-facto partner of a British citizen, whose relationship no longer exists.

Refusals & Appeals

Refusals by the Maltese Government should be supplied with reasons, in writing, for the basis of the decision, unless this is contrary to public security. An appeal can be submitted to the Immigration Appeals Board, on the basis and within the time period notified to the British national.

Next Steps

British nationals resident in Malta prior to the Brexit withdrawal date are urged to regularise their position.

Older persons and persons not deemed a worker or student on holding an S1 scheme permit should make inquiries as to an appropriate health insurance
Persons in ‘regulated professions’ such as lawyers, doctors, nurses, social workers, pharmacists, vets are urged to contact their regulating profession in Malta in order to ascertain their work / license status. You can find out whether you are part of a regulated profession here: http://ec.europa.eu/growth/tools-databases/regprof/index.cfm .

You are urged to submit their qualifications to the Malta Qualifications Recognition Information Centre prior to Brexit.

16Feb

IMF: Malta economy is ‘growing strongly’

16 February 2016 Acumum Legal & Advisory 722

The International Monetary Fund (IMF) has been reporting on the Malta economy in increasingly good terms over the last three months.

In February 2015, the IMF revised their forecast for Malta’s economic growth from 2.2 per cent to 3.1 per cent for 2014 and 2015, only a few weeks after making one of their biggest downwards revisions of its world economic growth forecast. Put simply, Malta continued to flourish even while the rest of the world did not.

The IMF notes that unemployment was at a record low, despite a large increase in the number of women working, praising the free childcare service and employment measures taken. Overall, the economic growth shown was predicted to lead to a reduction in Government deficit, with debt set to fall below 60 per cent by 2020.

Later the same year, in November 2015, a report was released by the IMF stating that Malta has weathered global shocks well and retained a strong outlook. They commented that a diverse economy and strong domestic funding has preserved stability, and a number of causes including infrastructure investments and income tax cuts accelerated growth to 5.1 percent in the first half of 2015, which levelled out to 4.3 per cent real growth throughout the year. Unemployment remained at record lows.

Looking ahead to next year, the IMF expects further solid growth owing to domestic demand supported by energy infrastructure projects, lower income taxes and a growing female labour force. Minister for Finance Edward Scicluna said of the IMF mission’s concluding statement that it “gives the Government the assurance that its economic and financial policies are well suited and are having the desired effects.”

07Nov

Malta – Israel Tax Treaty – In Force

7 November 2015 Acumum Legal & Advisory 33

Malta – Israel Tax Treaty – Ratified: the double tax treaty between Malta and the State of Israel signed in Jerusalem on the 29th of July 2011 has been ratified by the Republic of Malta via Legal Notice 343 of 2013.

Malta – Israel Tax Treaty. For a full list of Malta’s tax treaties go here

The ratification of this treaty is expected to improve and facilitate the bilateral relations between these two States, allowing for:

Israeli investors to have a more tax efficient access to their investments in the European Union
Israeli inbound investors can access and utilize the Malta – Israeli double tax treaty to extract profits out of Israel in a tax efficient manner.

Based upon the OECD Model Convention and is applicable to residents who are residents of one or both of these two Contracting States and applied to:

Malta income and corporate tax, taxes imposed on gains from immovable property (in accordance with the Real Estate Taxation Law)
Israeli profit tax on financial institutions.

Benefits:

Restricts Israel to levy any withholding tax on dividends when such dividends are paid to a Malta resident company holding at least 10% of the share-capital of an Israeli resident company – applicable to withholding taxes applied to an Israeli Real Estate Investment Company, subject to the Maltese company holding at least 10% of the share-capital of the Israeli Real Estate Investment Company
Israel is also bound to withholding tax of no more than 5% on interest paid to a Maltese company
Royalty payments – no withholding by the State of Israel on royalty payments made by an Israeli company to a Maltese company

Malta’s Tax Law do not withhold any tax on outbound interest, dividends or royalties and when combined with Malta’s 100% tax exemption on certain intellectual property, the treaty can realise true tax efficiencies for Israeli companies, the use of a Malta trading or holding company could lead to significant tax advantages.

Malta Tax Treaties | Corporate & Company Formation | Malta Holding Companies Taxation

Aviation | Financial Services | Gaming | Intellectual Property

Acumum – Legal & Advisory – Malta’s International Law Firm

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Brexit – Malta – Rules for British Persons

IMF: Malta economy is ‘growing strongly’

Malta – Israel Tax Treaty – In Force