TAX RESIDENCE PROGRAMS IN MALTA

In Malta, tax residents under the Residence Programme and the Global Residence Programme benefit from a 15% tax rate on foreign income received in Malta, with a minimum tax of €15,000 annually. These programmes do not tax capital gains from outside Malta. There are no inheritance taxes in Malta, enhancing the fiscal benefits for residents.

The Residence Programme (TRP) and Global Residence Programme (GRP) allow beneficiaries to apply for residence on the basis of Economic Self-Sufficiency. If this residence status is held for a minimum of 5 years, and physical presence criteria are observed, then one may be eligible for long-term residence and even citizenship.

The process for obtaining tax residence in Malta through the Residence Programme (TRP) or Global Residence Programme (GRP) involves several steps including submission of applications and necessary documents, due diligence, and final approvals. Typically, this takes around 3 months.

For TRP, EU, EEA, and Swiss nationals, excluding Maltese citizens, can apply. It excludes individuals already benefiting from other specified Maltese tax programs unless they renounce those benefits.

For the GRP, it's designed for non-EU, non-EEA, and non-Swiss nationals, explicitly excluding individuals with citizenship in these regions, even if holding dual nationality with a non-EU/EEA/Swiss country

Dependents in an application for the TRP or GRP include the applicant’s spouse, minor children, and adult children unable to maintain themselves due to serious illness or disability. Other relatives such as brothers, sisters, and direct ascendants can be included under certain conditions. Additionally, household staff who have been serving the beneficiary for at least two years prior to the application may also be included, subject to specific requirements

Under the TRP and GRP, there is no strict requirement to stay in Malta for a minimum of 183 days to maintain tax residence status. However, staying in another jurisdiction for more than 183 days within a calendar year could impact your tax residency status under Maltese law, as it may affect your status as a tax resident in Malta. It is essential to ensure compliance with both local and international tax laws to maintain the special tax status

It is not necessary to own or lease a property in Malta at the time of application for either The Residence Programme (TRP) or The Global Residence Programme (GRP). Applicants can submit their application without a certified final deed or lease agreement. However, the confirmation of special tax status will not be granted until the certified final deed or lease agreement, as applicable, is submitted and all other requirements are met

Yes, a beneficiary can change their qualifying property during the time they are beneficiaries of either the TRP or GRP. However, the new property must also meet the program's requirements for qualifying properties. It is essential for the beneficiary to notify the Commissioner for Revenue about the change and provide the necessary documentation, such as a new final deed or lease agreement, to confirm the new property's eligibility

The total cost of obtaining permanent residence in Malta through the TRP or GRP includes, a one-time administrative fee, a minimum annual tax, property costs, health insurance and professional fees such as legal, translation and notarisation fees. The total combined outlay for the first year is usually around EUR 40,000, with a minimum of EUR 25,000 per annum after that.

The minimum property purchase value for the program is EUR 220,000. Purchasing property in Malta may prove to be a valuable asset that can be leveraged for a return on investment.

In contrast, leasing a property has a minimum annual cost of rent. This cost, may be offset through our exclusive RentCapital+ service.

Purchasing property may require a larger investment upfront, whilst leasing may offer more flexibility in the short term.

Malta's real estate market offers a wide range of properties, from historic palazzos to modern seafront apartments, making it an attractive destination for foreign investors seeking diverse and unique investment opportunities therefore, the decision to buy or lease a property will depend on individual circumstances and preferences.

Yes, under the TRP and GRP, dependents and household staff may work in Malta, provided they meet specific conditions and obtain the necessary permits. For studying, beneficiaries and their dependents can attend educational institutions in Malta. It's important to follow the appropriate procedures for securing work or study permits and ensure compliance with local regulations

Applications for Economic Self-Sufficiency (ESS) can be submitted by third-country nationals who are beneficiaries of the TRP or GRP. Applicants must demonstrate financial self-sufficiency and have adequate health insurance. ESS-based residence is a form of legal residence, which grants entry and re-entry into Malta, together with visa-free travel within the Schengen Area.