The Residence Programme Rules

Main Benefits of The Malta Residence Programme

Once an applicant is approved under The Malta Residence Programme rules, the applicant will receive a certificate of confirmation from the Office of the Commissioner for Revenue.

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 Residence Programme, if he or she satisfies all of the following requirements:

• Is an EU (excluding Maltese), EEA or Swiss national;
• He/She is not a person who benefits under the Residents Scheme Regulations, the High Net Worth Individuals -EU / EEA / Swiss Nationals Rules, the High Net Worth Individuals – Non-EU / EEA / Swiss Nationals Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules or the Highly Qualified Persons Rules
• 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 applicant’s 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 Malta International & Corporate Tax Unit prior to the granting of the special tax status;
• Applicant can adequately communicate 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 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 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 Residence Programme must be made through the services of a person that is licensed as an “Authorised Registered Mandatory” with the Office of the Commissioner for Revenue.