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Malta Global Residence Programme – Introduction
Malta Global Residence Programme (GRP) is a tax residency program designed for individuals from non-EU, non-EEA, and non-Swiss countries. It is an appealing option and it is tailored to meet the requirements of affluent individuals seeking a special tax status and a foothold in the European Union.
The goal of the Malta Global Residence Programme is to acknowledge foreign nationals who meet the eligibility criteria as tax residents for Maltese tax purposes. To qualify for the programme, economically self-sufficient individuals must have a permanent address in Malta through owning or renting residential property in Malta or Gozo.
Benefits of The Malta Global Residence Programme
Tax Benefits
Individuals from non-EU, non-EEA, and non-Swiss countries who take up residence in Malta via the Global Residence Programme can enjoy attractive tax benefits. This setup offers substantial tax advantages in contrast to standard global income tax practices:
- Zero taxes on income generated outside Malta and not received within Malta;
- Capital gains earned outside Malta, even if received in Malta, are not subject to Maltese taxes;
- Income earned outside Malta but received in Malta is taxable at a flat rate of 15%;
- Income generated within Malta and capital gains realized within Malta are subject to a higher tax rate of 35% in Malta;
- Malta has signed more than 60 double taxation agreements with various countries globally and most countries within Europe plus countries such as Canada, Australia, and the USA, to prevent participants of the Malta Global Residence Programme from being taxed twice on their income, making Malta an appealing residence option.
Note: A minimum annual tax charge of €15,000 is applicable.
Summary of Malta Residence Tax Rules
| Taxation basis | Local source, remittance |
|---|---|
| Tax rate on income from foreign sources remitted to Malta | 15% |
| Tax on capital gains outside Malta | Zero |
| Tax rate of local personal, investment and business income | 35% |
| Double tax treaty | Applicable |
| Tax per dependent | Zero |
| Minimum tax per family | €15,000 |
| Tax Residence certificate | Available |
| Inheritance tax | Zero |
Other benefits of the Malta GRP
No Minimum Stay
The Malta Global Residence Programme offers the benefit of not having a minimum stay requirement, providing flexibility and convenience for participants to enjoy Malta’s tax advantages without being obligated to spend a specific amount of time in the country annually.
Family Membership
The Malta Global Residency Program enables the inclusion of family members through a single application, encompassing spouses, financially dependent ancestors and children below 26 years old. This feature is a valuable asset for individuals seeking to move their families to a fresh, secure, and culturally diverse location.
Convenience of Travel in the Schengen Region
Beneficiaries of the Malta Global Residency Program enjoy convenient travel within the Schengen Area, facilitating movement throughout Europe. This perk is especially appealing to business executives and individuals wishing to travel throughout Europe without the inconvenience of acquiring visas.
Cultural and Lifestyle Advantages
When you live in Malta as a Global Resident, you can experience a unique lifestyle and enjoy the sunny Mediterranean island that has a diverse historical background. Malta provides a lively, laid-back living environment, cost-effective lifestyle, and a unique cultural environment that attracts people from all over the world.
Malta’s crystal-clear sea is often ranked as the world’s second-best diving spot, and Malta also has three UNESCO World Heritage Sites.
Furthermore, it must be noted that English is an official language and the Maltese are fluent in English.
Opportunities for Employment and Business in Malta
The expanding economy in Malta offers a wide range of employment and business opportunities. There are attractive investment possibilities, especially in the real estate sector. Malta’s strategic position and membership in the EU make it an appealing hub for both new ventures and established companies.
High Standard of Education and Health Services
Malta offers top-tier education and healthcare services, with international schools and advanced medical facilities meeting the needs of global residents, making it a perfect choice for families. It is worth mentioning that the World Health Organization (WHO) ranked Malta fifth position amongst over 100 countries.
Who is Eligible to Apply for the Malta GRP?
The Global Residence Programme is an appealing option for individuals seeking a special tax status and a foothold in the European Union. The program welcomes individuals who are not:
- EU nationals (excluding Maltese nationals);
- Nationals from Switzerland, Iceland, Norway and Liechtenstein.
Besides the primary applicant, eligible dependents include the following:
- The main applicant’s spouse or partner in a committed relationship;
- Children, including adopted minors and those under the main applicant’s care who are under 18;
- Adult children, including adopted ones, who are incapacitated due to severe illness or disability;
- Children aged 18 to 25 who are not financially independent;
- Dependent siblings, parents, and grandparents of the main applicant, their spouse, or partner;
- Household employees who have been working for the family for at least 2 years from the date of the application.
What are the Primary Requirements for applying to the Malta Global Residence Programme?
Malta GRP permits are issued subject to the below conditions:
Representation by an Authorised Registered Mandatory
To be eligible for the Global Residence Programme, the applicant and his/her dependents must be assisted and managed by an Authorised Registered Mandatory (ARM) who will guide and oversee the application process.
Prospective applicants are advised to seek guidance from authorized agents to guarantee adherence to all criteria and to streamline the application procedure.
The Applicants must be third-country nationals
Applicants for the Global Residence Programme must be third-country nationals. Applicants from EU, EEA, and Switzerland are not eligible. Dual citizens involving these countries are ineligible for special tax status under the Global Residence Programme but may apply under The Residence Programme instead.
Additionally, applicants must not reside in another jurisdiction for more than 183 days in a calendar year.
Applicants must not be receiving benefits from other tax schemes
Applicants applying for the GRP must not be a beneficiary of any of the below tax programmes:
- High Net Worth Individuals Rules;
- Malta Retirement Programme Rules;
- Residents Scheme Regulations;
- UN Pensions Programme Rules;
- Qualifying Employment in Innovation and Creativity Rules;
- Highly Qualified Persons Rules.
Economically Self-Sufficient with Stable Income
Applicants must demonstrate financial self-sufficiency and have a steady income to support themselves and any dependents without relying on social assistance in Malta.
Valid travel document, health insurance, fit and proper individual and police conduct certificate
The individual should also have a valid travel document, sickness insurance that covers all typical risks for Maltese citizens, be able to communicate effectively in one of Malta’s official languages, and be a fit and proper individual. The applicant must submit a police conduct certificate that was issued not earlier than 6 months prior to the submission date. He/she must also confirm (on oath) that he/she is not subject to any criminal or civil proceedings.
Property Requirements under the GRP
In order to quality, the applicant must acquire or rent property in Malta within 12 months of joining the Malta Global Residence Programme.
In addition to all the above, applicants must meet the below specific property requirements in Malta:
- Purchase of a property of at least €220,000 in Gozo or South Malta, or €275,000 in other areas;
- Rental of a property for a minimum of €8,750 in Gozo or South Malta, or €9,600 in other regions, for a minimum of 12 months, exclusively for the applicants and their dependents.
Summary of Cost
| Non-refundable fee | €6000 (€5,500 if the property is located in the south of Malta or Gozo |
| Minimum tax p.a. | €15,000 |
| Acquisition of property | €275,000 (€220,000 if the property is located in the south of Malta or Gozo |
| Rental of property | €9,600 p.a. (€8,750 if the property is located in the south of Malta or Gozo |
Malta GRP – Application Process
Applying for the Malta Global Residence Programme is a relatively swift process, taking about 3-4 months from submission to approval, depending on due diligence checks, review times and each case’s particularities.
It involves a series of steps and includes the collection of supporting documents, completing the application, undergoing due diligence checks, and ending with the receipt of approval and obtaining a residence card. It is important to follow each step exactly as the instructions and provide complete and accurate documentation that is correctly certified so as to ensure compliance and accuracy.
An initial application fee is required, alongside compliance with property and tax regulations within the first year of residence as explained above.
Summary of the Malta GRP Application Process
| Steps | Actions |
|---|---|
| Step 1 | Make sure the applicant satisfies the eligibility criteria |
| Step 2 | Collect the necessary documentation for all applicants, including but not limited to: – Passport copies – Birth certificates – Marriage certificates – Police conduct certificates – Proof of financial means – Bank reference letters – Medical insurance Important note: all documentation must be legalized or apostilled and officially translated into English if necessary. |
| Step 3 | Submission via an Authorized Registered Mandatory (ARM) to the International Tax Unit from the Commissioner for Revenue of Malta |
| Step 4 | Applicants receive updates on their application status ensuring transparency and clarity |
| Step 5 | Once the application is approved the Commissioner will issue a Letter of In Principal Approval and the property requirement (as explained above) will need to be fulfilled. After a successful interview between the applicant and the Commissioner, the Special Tax Status is granted |
| Step 6 | It must be noted that the Commissioner might request additional documentation |
| Step 7 | Once the benefit of special tax status is granted, the Annual Tax Return must be submitted |
Conclusion
The Malta Global Residence Programme provides a compelling option for individuals from non-EU, non-EEA, and non-Swiss backgrounds who wish to obtain residency in an active EU nation. Boasting a simple application process, advantageous tax system, and the ability to include family members and household staff, the GRP emerges as a practical selection for those considering a move to Malta.
Whether one is attracted to the benefits of a sunny Mediterranean lifestyle, convenient travel within the Schengen Area, or the financial incentives of the program, the GRP presents a distinct chance to experience the advantages of Maltese residency.
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