Malta Global Residence Programme & The Residence Programme

The Government of Malta has launched a residence programme (GRP) that is aimed at people who buy high value property and encourages foreign nationals to take up residence in Malta.

By means of Legal Notice 167 of 2013, the Global Residence Program Rules (GRP) 2013 have been published. Contrariwise as what has been expected, these Rules are only applicable to non-Maltese, non-EU, non-EEA and non-Swiss nationals. Further, by means of Legal Notice 178 of 2013, as of the 30th of June 2013, no other applications from Non-EU/ Non-EEA/ Non-Swiss nationals in terms of the HNWI scheme will be accepted.

n terms of these Rules, the localities in the south of Malta are the following, Birżebbuġia, Cospicua, Fgura, Għaxaq, Gudja, Kalkara, Kirkop, Luqa, Marsascala, Marsaxlokk, Mqabba, Paola, Qrendi, Safi, Santa Luċija, Senglea, Siġġiewi, Tarxien, Vittoriosa, Xgħajra, Żabbar, Żejtun and Żurrieq.

The Global Residence Program Rules establish that on income arising outside of Malta but brought into Malta, the minimum tax payable is €15,000, with further income arising outside of Malta but brought into Malta to be taxed at a flat rate of 15%. The minimum tax payable, must be paid fully and yearly in advance and any other income will be taxed at the rate of 35%.

In order to avail from the Malta Global Residence Program Rules, the beneficiary must:

  1. Not be a Maltese/ EEA/ Swiss national;
  2. Not benefit from any other special tax status;
  3. Hold a qualifying property;
  4. Be in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta;
  5. Be in possession of a valid travel document;
  6. Be in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals, for himself and his dependents;
  7. Be fluent in either Maltese or English; and
  8. Be a fit and proper person.

In terms of the GRP Rules the special tax status may now be inherited. Moreover, the Rules state that the beneficiary must continuously satisfy the obligations in terms of the Rules.

An Overview of The Residence Programme Rules (TRP)

The High Net Worth Individuals Rules have now been amended to reflect the thresholds of the Global Residence Programme and are now entitled the Residence Programme Rules (TPR). Applicants taking up residence in Malta may benefit from a special and favourable Malta Tax status and treatment and Tax Incentives.

Residence in Malta

In late June 2014 (earlier this year), the Maltese government also launched the Global Residence Programme (GRP) to replace the HNWI programme (for Non-EU/non-EEA/non-Swiss nationals) which was launched in 2012. The GRP programme lowered the minimum thresholds for the purchase of immovable property and rental property by foreigners in Malta. The minimum tax threshold for tax exiles who purchase property in Malta was lowered to €15,000 from the previous €25,000. The bond amount of €500,000 was removed completely while the application fee for foreigners purchasing property in the South of Malta and Gozo was slightly reduced.

Authorised Registered Mandatory

Applications for the GRP Rules may be applied for only through an Authorised Registered Mandatory. We may apply on your behalf due to the fact that CSB is a registered Mandatory.

The Rules state that a person availing of the HNWI scheme may request to change to the Global Residence Programme Rules and start availing of the more recent and more advantageous program. Those applicants who (as of the 30th of June) are still in the process of applying for their HNWI status may also choose to avail of the new GRP program. This request may be done to the department through an Authorised Registered Mandatory.