Malta citizens will retain UK preferences that other EU citizens may lose after Brexit
The policies of Malta and the UK are aimed at maintaining close cooperation after Brexit. This means that the citizens of Malta will be able to stay in the UK without visas and restrictions. And Malta can become a European base for British business.
Malta’s policy is to maintain free communication with Britain even after Brexit.
Now citizens of the European Union can visit the UK without a visa and study on favorable terms at British universities. After Brexit, these agreements may cease to be valid. We wrote earlier that the UK plans to introduce a residence permit for points even for EU citizens.
If Malta manages to maintain its former relations with the UK, these changes will not affect its citizens.
Great Britain withdrew from the European Union on January 31, 2020. The country will remain part of a single economic space until the end of 2020. At this point, the governments of the UK and the European Union must decide what the new terms of trade and cooperation will be.
Malta may retain exclusive agreements with Great Britain as a former colony. Their ties are historically conditioned. Malta is part of the British Commonwealth of Nations.
Malta and the UK are mutually concerned about the interests of the partner’s citizens. Bilateral agreements between them ensure that the impact of Braxit on individuals and businesses is minimised.
Preferences for individuals
Today, about 10 thousand British citizens live in Malta. These are employees of representative offices of British companies and institutions and their families.
Malta will provide UK citizens with the opportunity to obtain a residence permit for up to 10 years.
EU citizens are now free to visit the UK. For EU passport holders who live in the UK, there is an established status scheme. For young people from Europe there are preferential rates in universities of the United Kingdom.
EU citizens may lose these preferences. Malta’s policy is to preserve these ties.
Now between the two states there are health agreements that allow citizens to receive free medical care. For example, in the UK, Maltese children are being treated for cancer — earlier we said that the Malta government pays for their living from the Development Fund.
The Government of Malta is discussing pension and tax programs for immigrants from the UK.
British citizens who apply for Malta tax status through the High Net Worth Individuals and Residency Program will be able to continue to pay taxes at a rate of 15%.
Malta is pro-British and seeks to conclude bilateral agreements. This increases the chances of preserving the former rights of Malta citizens in the UK: visa-free travel, preferential studies at universities. Most likely, the holders of a Malta passport will retain freedom of movement.
Brexit affected the interests of 200 thousand British companies that cooperate with partners in the EU or trade in European markets. Until the end of 2020, they will retain their previous position, but further developments may not be as favorable.
Malta can become a European base for British business. The country’s tax policy provides numerous benefits and deductions for companies: for example, a 6/7 tax refund and the possibility of creating consolidated groups of companies.
There are also benefits for highly qualified personnel of financial companies. Their annual income from €85 thousand to €5 million is taxed at a fixed rate of 15%. If a specialist earns more than €5 million per year, the excess is not taxed. Benefits are valid for a certain period. For non-EU citizens it is four years.
Thanks to the tax benefits British companies are able to open representative offices in Malta and transfer employees there. This is particularly true for companies involved in financial or innovative activities: Malta is one of the international centres of fintech.
The impact of British business on Malta
The presence of British companies in Malta has a positive impact on the country’s economy. And not just through taxes and industry development. British companies operating in Malta rely on English law. The British business culture is strong. All this enhances investors' confidence in Malta’s economic policy.
In addition, tax benefits for companies and qualified personnel lead to an influx of highly paid specialists and capital into the country. This has an impact on improving the standard of living of Maltese people.
If the previous relationship between Malta and the UK is maintained, investors with Maltese passports will be protected from the consequences of Braxit. Their welfare will be less dependent on the arrangements between the EU and the UK for the year 2020.
Earlier we said that in Malta, the pandemic has not affected construction, but property prices have fallen. This is a profitable opportunity for investors who are planning to buy property under the Malta Citizenship, residence permit and permanent residence programs of Malta
In addition, Malta’s new e-passports are recognized as the most secure in 2020. Investors who apply for Maltese citizenship will not have to worry about the security of their personal data.