Offshore Guidebook | Real Estate Investor Magazine Offshore Guidebook 2014 | Page 65

their businesses to Malta due to an advantageous corporation tax system. The income tax system Property acquisition Buying a property in Malta is very safe and simple. More than an investment Citizenship-through-Investment programmes have opened up opportunities for investors to become members of the EU and enjoy the various benefits that entails. These kinds of programmes give non-EU members the chance to become a citizen of a country that provides them with sound investment options along with all the lifestyle perks of living on a Mediterranean island. There are numerous advantages to an EU citizenship within a country such as Malta. Once applicants have received their Maltese citizenship, they will be able to work Once a property has been decided upon and price and conditions have been agreed, a preliminary agreement is signed bet ween the vendor and purchaser, at which time 1% of the stamp duty due is payable and a sum equivalent to 10% of the price is lodged. This deposit will be forfeited if the purchaser fails to complete the final deed of transfer for no valid reason at law. The agreement is usually valid for three months (term prescribed by law) or as mutually agreed by the parties. During the period between the signing of the preliminary agreement and the signing of the final deed of sale, a Notary Public engaged by the purchaser will carry out the necessary researches into the property to confirm good title, as well as submit the application to purchase to the Ministry of Finance if necessary. The final contract of sale may be entered into – the deed of sale being drawn by purchaser’s Notary. The balance of the purchase price and Stamp Duty plus legal expenses are paid on the signing of the contract when vacant possession to provides a number of incentives to shareholders of Malta companies deriving income from their investments or trading activities. This is irrespective of whether the income is derived from Maltese companies or companies registered outside of Malta. The income of Maltese companies is subject to a flat income tax rate of 35%. There are also four forms of relief from double taxation available, which include the country’s far-reaching double tax treaty network. and set up a business in the country enjoying the business benefits on offer. Investors are able to gain citizenship in Malta through one of three ways. 3 ways to get Maltese citizenship 1. A €650,000 contribution to the National Economic and Social Development Fund for the main applicant, plus €25,000 for a spouse and each additional dependent under the age of 18, plus a further €50 000 for each dependent over the age of 18. 2. The purchase or lease of immovable residential property. This requires the investor to either purchase immovable residential property from a minimum of €350,000 upward or lease immovable residential property from a minimum value