What makes Malta a good option for China’s wealthy
Beginning wealth planning early is the norm in China, where high net worth individuals study at length their preferred wealth management strategy.
Traditionally, that wealth has been parked in investments, ranging from successful businesses to property and even commodities. However, with the advent of globalization and easier movement of capital, many have broadened their search overseas, originally to invest in international bonds or securities, and nowadays for residency and citizenship programmers.
Thanks to Malta’s extensive range of wealth management and relocation programs together with other attributes that it has to offer, the island has also been picked up on the radar of China’s wealthiest, particularly for those who are looking for greater mobility within the EU, advanced healthcare, a wider range of lifestyle choices, and better-quality education for their families. The same can be said for Russians and Middle East nationals.
As the smallest EU-Member state, Malta is also considered a favourite residency and citizenship option thanks to its safety and security record. Driven by its reputation for stability, predictability, and security, the former British colony of Malta has become one of Europe’s leading investment locations. This has made the Malta Individual Investor Program (MIIP) the most exclusive and sought-after citizenship-by-investment program in the world, with applications capped at just 1,800. For those seeking residency, Malta offers the Global Residence Programme and the Malta Residency and Visa Programme.
Malta also enjoys the world’s 10th most powerful passport, with visa-free access to 167 countries, including all EU member states, the US, Australia, and Switzerland. As a former British colony, Malta inherited a remittance-based tax system that provides benefits to foreign individuals who become tax resident there.
In addition, Malta does not levy inheritance tax, gift tax or wealth tax, which are serious additional advantages. Stamp duty is only paid on transfers of Maltese real estate (5 percent) and on transfers of certain shares in Maltese companies (2 percent).
Moreover, the acquisition of Maltese citizenship does not trigger tax residence and, even if one chooses to permanently relocate to in Malta, he/she would normally still retain the status of a non-domiciled person insofar as taxation is concerned - subject to satisfying a number of conditions.