Malta offers a number of different residency schemes designed to provide several benefits to its applicants. This article explores the requirements and benefits of the three most consequential schemes. 

The benefits that these schemes bring can range from higher tax efficiency to visa-free access to the Schengen area (which encompasses most of the European Union and a number of other countries) as well as other potential benefits.

The Residence Programme (TRP)

The Residence Programme (TRP) is specifically aimed to attract individuals whose nationality corresponds to Switzerland, the European Union (EU) and the European Economic Area (which consists of Iceland, Liechtenstein and Norway as well as all countries in the EU). 

This residency programme offers a number of attractive fiscal advantages. Firstly, a flat 15% tax rate is applied on any foreign income that is remitted to Malta. Where the tax payable under this rate amounts to less than €15,000, a minimum annual tax of €15,000 applies. Foreign income not remitted to Malta is not taxed. Any capital gains realised outside Malta are also not taxed, even if these gains are received in Malta. In addition, double taxation relief is available on any income earned outside of Malta and remitted to Malta. 

In order for an individual to qualify for the TRP, they must not already be a permanent resident of Malta. Additionally, the individual must also own or rent a property in Malta. If the property is owned in the south of Malta or Gozo it must have cost more than €220,000. Whilst properties owned in other regions of Malta would need to cost more than €275,000. If the property being rented is located in Gozo or the south of Malta it must be rented for a minimum of €8,750 per year. Whilst its equivalent in any other region of Malta would be subject to a minimum rent of €9,600 per annum.

 

Global Residence Program (GRP) 

The Global Residence Program (GRP) is a programme designed for individuals that are not already long-term residents of Malta and are not nationals of the EU, EEA or Switzerland. This residence programme also provides the applicant with the opportunity to work in Malta if the requirements to obtain a work permit are met. Family members of the applicant can be included in the application to benefit from this residency program. 

In addition to the benefit of having the opportunity to work in Malta, this type of residency also opens the door to increased tax efficiency. Firstly, a flat 15% tax rate is applied on any foreign income that is remitted to Malta, which is subject to a minimum annual tax of €15,000.  No tax is applicable on any foreign income not remitted to Malta whilst inheritances are also not taxed. Double taxation relief is available and applicable for any income that is remitted to Malta. 

Apart from the obvious tax advantages, additional benefits are also available. This residence scheme does not require a minimum stay requirement, offering full flexibility for living arrangements and travel. Additionally, this residence scheme provides the individual with full access to visa-free travel within the Schengen zone (most EU countries as well as some non-EU countries in Europe). 

This residence programme presents similar requirements to the TRP i.e. that the applicant must also own or rent a property in Malta. If the property is owned in the south of Malta or Gozo it must cost more than €220,000, whilst this rises to €275,000 if the property is situated in other regions of Malta. If the property is to be rented in Gozo or the south of Malta it must be rented for a minimum rent of €8,750 per year whilst renting in any other part of Malta would be subject to a minimum rent of €9,600 per year.

This residency scheme also imposes other requirements such as having the necessary resources to maintain the individual as well as any dependents. The individual and any dependents must also be in possession of a valid sickness insurance policy. The applicant must additionally be able to communicate in an official language of Malta (English or Maltese).

 

Malta Retirement Program (MRP) 

The Malta Retirement Programme is a programme designed to attract individuals hailing from the EU, EEA and Switzerland as well as individuals originating from outside the EU. The individual must not be a Maltese national. 

The taxation benefits of this scheme consist of a flat 15% tax rate on any pension that is remitted to Malta. This adds up to a minimum tax payable of €7,500 for the beneficiary and €500 for each of their dependents registered under this scheme. 

The individual must also own or rent a qualifying property in Malta. For an owned property to qualify it must have cost €250,000 at minimum if purchased after 1 January 2011 and 30 June 2013 whilst being located in Gozo or the south of Malta. The required minimum purchase price of the property rises to €275,000 if the property is located in other regions of Malta. If the property was purchased on or after 1 July 2013 it must cost a minimum of €220,000 if located in Gozo or the south of Malta and €275,000 if located in other regions of Malta. 

If the property is being rented, for it to qualify the following rental price minimums must be reached. If the property is to be rented in Gozo or the south of Malta it must be rented for a minimum rent of €8,750 per annum whilst renting in any other part of Malta would be subject to a minimum rent of €9,600 per annum.

Additionally the individual must prove that they are in possession of stable and regular resources sufficient to sustain themselves and their dependents in Malta, is in possession of sickness insurance, is not domiciled in Malta and does not intend to establish domicile in Malta in the next five years, is a fit and proper person and can properly communicate in one of Malta’s official languages. 

In conclusion, Malta’s residency schemes provide a range of options tailored to different individual’s needs and place of origin. These schemes come part and parcel with substantial tax and other benefits making the schemes perpetually appealing. 

Contact us for more information and to help you make full benefit of these schemes!