CSB Group one of first to receive HNWI registered mandatory status in Malta

CSB Group can now assist individuals who wish to apply for a special tax status under the High Net Worth Individuals - EU/EEA/Swiss Nationals Rules and the High Net Worth Individuals - Non-EU/Non-EEA/Non-Swiss Nationals Rules, collectively referred to as the High Net Worth Individuals Rules.

The rules will run in parallel to the amended Residents Scheme Regulations but will not regulate holders of a valid permanent residence certificate issued by the Commissioner of Inland Revenue in terms of the Residence Scheme Regulations.

Authorised Mandatories at CSB Group - namely CSB Group CEO Michael J.Zammit, as well as CSB Group Head of Legal and Director and Managing Partner of Zammit & Associates - Advocates, Dr Andrew J. Zammit, are now able to represent their clients for the purposes of the High Net Worth Individuals Rules.

Being members of  the Institute of Financial Services Practitioners (IFSP) and The Malta Institute of Management (MIM) is required when applying for mandatory status, besides holding a warrant to practice as advocates under the Code of Organisation and CivilProcedure, as well as a warrant to practice as legal procurators under the Code of Organisation and Civil Procedure. In order for an Authorised Mandatory to be able to represent his clients such person needs also needs to be registered with the Commissioner of Inland Revenue.

Individuals who may benefit from the high net worth rules are EU nationals (excluding nationals of Malta), nationals of Switzerland, Iceland, Norway and Liechtenstein, any individual who is not a citizen of the EU.

Individuals eligible to benefit under the new scheme would be taxable in Malta on foreign source income which is received in Malta at the favourable flat rate of 15%. Local source income and gains would be taxable in Malta at the higher rate of 35%. Still, eligibility criteria and ongoing requirements have been enhanced and heightened, particularly in respect of non-EU/EEA/Swiss nationals.

As such, eligible individuals shall be required to acquire qualifying immovable property in Malta having a value of not less than €400,000 or to otherwise procure such qualifying immovable property under a lease agreement against aggregate rental consideration of not less than €20,000 per annum.