Global Residence Programme

Global Residence Programme

The Malta Global Residence Programme (“GRP”)  is a residence programme which is mainly tax driven and designed to attract investment from third country nationals (“TCNs”). The programme was introduced by the Maltese Government in 2013 through Legal Notice 167/2013.

Main Benefits of the Malta Global Residence Programme

Once an applicant is approved under the Malta Global Residence Programme rules, the applicant will receive a certificate of confirmation from the Maltese Inland Revenue Department. This certificate will entitle the applicant and his dependants to apply for a residence permit in Malta, which will entitle the family to not only reside in Malta, but to travel the Shengen area, without the need of applying for a Schengen visa.

Any foreign sourced income remitted by the applicant to Malta will be taxed at a special fixed tax rate of 15%.

All other foreign sourced income which is not remitted to Malta will not be taxed in Malta. Whereas income generated in Malta is taxable at 35%.

Eligibility to Apply under the Malta Residence Programme

An individual shall be eligible to apply for a residence permit in Malta under the Global Residence Programme, if he or she satisfies all of the following requirements:

  • Is a third country national;
  • He is not a person who benefits under the ResidentsScheme Regulations, the High Net Worth Individuals -EU / EEA / Swiss Nationals Rules, the High Net WorthIndividuals – Non-EU / EEA / Swiss Nationals Rules,the  Malta  Retirement  Programme  Rules,  theQualifying Employment in Innovation and Creativity(Personal Tax) Rules or the Highly Qualified PersonsRules
  • the applicant must rent an immovable property in Malta for not less than €9,600 per annum (or rent an immovable property in Gozo or South of Malta for not less than €8,750 per annum) or purchase an immovable property in Malta for a value of not less than €275,000 (reductions apply in respect of properties in Gozo and the South of Malta);
  • the immovable property must not be shared with individuals not listed as dependants on the applicants certificate(exemption applies for special carers);
  • applicant must be in possession of health insurance policy which covers himself and his dependents in respect of all risks across the whole of the European Union;
  • applicant must be deemed to be a fit and proper person, and therefore, an international due diligence exercise shall be carried out by the Maltese International Tax Authority prior to the granting of the special tax status;
  • applicant must be fluent in English or Maltese;
  • A non-refundable one-off fee of €6,000 must be paid by the applicant upon submitting the application (a reduction applies in relation to applicants purchasing or renting in Gozo or the south of Malta);
  • the main applicant must pay a minimum annual tax of 15,000 Euro per year;
  • the main applicant must not reside in any other jurisdiction for a minimum period of 183 days in a calendar year.

Annual Compliance Obligations

Any individual that has been granted special tax status under the Malta Global Residence Programme must comply with the following obligations on a yearly basis:

  • The immovable property holding must be retained;
  • The applicant must retain the health insurance policy;
  • The applicant must not reside in any other jurisdiction for more than 183 days;
  • Special reporting obligations (the filing of an annual declaration together with the annual tax return).

GVZH as authorised registered mandatory undertakes the annual compliance obligations.

Tax Treatment

  • Any foreign sourced income which has been remitted to Malta shall be taxable at a fixed rate of 15%, with the possibility of claiming double tax relief on such income;
  • Applicant must pay a minimum tax of €15,000 every year;
  • A beneficiary and his spouse cannot opt for a separate tax computation;
  • foreign sourced income which is not remitted to Malta is not taxed in Malta;
  • Income generated in Malta will be taxed at a flat 35%.

Authorised Registered Mandatory

Any application for special tax status under the Global Residence Programme must be made through the services of a person that is licensed as an “Authorised Registered Mandatory” with the Malta Inland Revenue Department.

Get in touch with us