Malta Global Residence Programme

Malta has become an increasingly popular destination for expats seeking a high standard of living, an attractive tax regime and a safe and stable environment to raise their families. With its beautiful landscapes, mild climate, and unique cultural heritage, Malta offers a distinct lifestyle that is highly sought after by those looking for a change of pace. If this is what you’re looking for, the Malta Global Residence Programme may just be what you’re looking for.

The Global Residence Programme (GRP) offers non-EU/EEA/ Swiss nationals a special tax status in Malta to benefit from a reduced fixed tax rate of 15% on all foreign-generated income that is remitted to Malta. The programme has a straightforward application process for eligible applicants, their families and household staff which can lead to obtain Maltese residency upon a separate application and upon satisfying certain criteria. Conditions of the programme include purchasing or renting a property in Malta, providing proof of a stable and regular source of income and holding valid health insurance. Beneficiaries of the program are subject to an annual minimum tax of €15,000 covering the first €100,000 of remittances to Malta.

Key facts about the Global Residency:

Income arising outside Malta which is received in Malta would be chargeable to tax in Malta at the flat rate of 15%;
Income arising in Malta and capital gains realised in Malta would be taxable in Malta at the higher rate of 35%;
The applicant may not reside in any one other jurisdiction for more than 183 days in any calendar year;
No tax on income and capital gains arising outside Malta;
The applicant and his/her spouse can include financially dependent parents and unmarried children under 25 years old;
In case of obtaining a Maltese residence card applicant will be eligible to reside in Malta without any restrictions;
Free movement within the entire Schengen area;
No obligations to reside for any minimum number of days in Malta;
An application fee of €6,000 applies and must be paid upon application.

Conditions of the Malta Global Residence Programme

To qualify for the GRP, applicants must meet the following conditions:

Property Ownership: Applicants must either purchase or rent property in Malta. The property must meet minimum value, which is currently €275,000 for properties in Malta and €220,000 for properties in Gozo or the south of Malta. For rentals, the minimum annual rent is €9,600 in Malta and €8,750 in Gozo or the south of Malta.

Income:
Applicants must provide proof of a stable and regular source of income sufficient to maintain themselves and their dependents.

Health Insurance:
Applicants must hold valid health insurance covering Malta and the European Union.

Due Diligence:
All applicants undergo a rigorous due diligence process, including background checks, to ensure they meet the programme’s requirements.

Engagement of an ARM:
Applications must be submitted through an Authorized Registered Mandatory (ARM) approved by the Maltese authorities.

Tax Benefits

Beneficiaries of the GRP enjoy significant tax advantages:

Income arising outside Malta, which is received in Malta, is chargeable to tax in Malta at a flat rate of 15%.
Income arising in Malta and capital gains realized in Malta are taxable at the standard rate of 35%.
A minimum annual tax of €15,000 applies, covering the first €100,000 of remitted income.
There is no tax on income and capital gains arising outside Malta if they are not remitted to Malta.

Additional GRP Benefits

The GRP offers several attractive features for beneficiaries:

Dependents:
Applicants can include their spouse, financially dependent parents, grandparents, and unmarried children under 25 years old.

Residency:
Upon obtaining a residence card, applicants and their dependents can reside in Malta without restrictions.

Schengen Area Access:
Beneficiaries can enjoy visa-free travel within the whole area.

No Minimum Stay:
There are no obligations for beneficiaries to reside in Malta for any minimum number of days.

The Permit Application Process

The application process is straightforward but requires careful preparation:

Engage an ARM:
Select an Authorized Registered Mandatory to handle the application.

Submit Documentation:
Provide proof of property purchase or rental, income, health insurance, and other required documents.

Pay Application Fee:
A non-refundable application fee of €6,000 (€5,500 for properties in Gozo or the south of Malta) must be paid.

Undergo Due Diligence:
Complete background checks and any additional verification processes.

Await Approval:
Upon successful approval, applicants can go ahead and get the residence card.

Obligations and Restrictions

Beneficiaries must adhere to the following:

Tax Compliance:
Ensure timely payment of the minimum annual tax and adhere to Maltese tax regulations.

Residence Limitation:
Beneficiaries may not reside in any one other jurisdiction for more than 183 days in a calendar year.

Property Maintenance:
Maintain ownership or rental of the qualifying property.

By meeting these requirements, you could be one of the successful applicants to enjoy a high-quality lifestyle in one of Europe’s most desirable destinations.