Real Estate Investor Magazine South Africa December - January 2014 | Page 69

OFFSHORE The turquoise crystal Mediterranean waters attract many sailing vessels of various sizes and nationalities including Super Yachts. Ship and yacht registration in Malta is particularly useful for vessels sailing in the Mediterranean due to the country’s compliance with EU VAT regulations. The islands offer array of outdoor activities including yacht charters, fishing, rock climbing and is a highly rated diving destination. Malta’s economic growth story has been in financial services, banking and insurance. They have invested in sophisticated infrastructure and focus on healthcare and education. A number of Fortune 500 companies have set up captives in Malta such as Vodafone, Peugeot and Citroen. Recently the pension sector has been developed to provide international pension products and Malta has an excellent name in international fund administration. Recent legislation providing a robust policy for e-payments is set to drive this industry. The World Economic Forum Global Information (Global Information Technology Report 20102011), made favourable mention of Malta for mobile network coverage, government prioritisation of ICT, high-tech exports and secure network servers and other technological infrastructure. The Malta 2013 global residence programme Earlier this year the Maltese government has enhanced the terms of the incentive scheme offered to high net worth individuals seeking to obtain a residence permit. Under the terms of the revised scheme, the taxpayer must purchase immovable property worth at least EUR275 000 (USD365 000) in Malta or EUR220 000 in Gozo or the south of Malta, where property prices are generally lower. (This i s a marked reduction on the previous requirement of EUR400 000.) Alternatively, the individual may rent property for no less than EUR9 600 in Malta, or EUR8 750 in south Malta or Gozo ( reduced from EUR20 000). The taxpayer must make an annual tax contribution of no less than EUR15 000 which is less than previously required with further income arising outside of Malta but brought into Malta to be taxed at a flat rate of 15%. As expected a vetting system applies including fluency in either English or Maltese. (There are further benefits in establishing Maltese operating and holding companies.) There are several advantages of Permanent Residency in Malta: there is no tax on capital remitted to Malta or tax on gains arising outside of Malta. There are no inheritance, capital or wealth taxes and, as discussed, there is 15% income tax on income derived in or remitted to Malta. Most importantly there is no requirement to purchase property where one can meet the minimum rental requirement and there is no minimum period of residence required. It is important to note that South Africans should take appropriate advice on acquiring residence in Malta as well as their tax status in respect of South Africa. A taxpayer can be seen to be resident in both countries and thus liable to tax in both if they don’t meet the necessary requirements. RESOURCES Amicorp CAPE TOWN Ground floor, Liesbeek House, River Lane, Mowbray PO Box 23644, Claremont, 7735 Tel: [phone] | Fax: [phone] Official South African marketing agent for LEPTOS ESTATES | www.LeptosEstates.com Contact: Jenny Ellinas | [phone] | [email protected] | www.cypriotrealty.com