The Maltese Government introduced the Global Residence Programme in July 2013 aimed at granting Maltese residence to wealthy individuals who are not nationals of the EU, EEA or Switzerland. (For the Residence Programme which applies to nationals of the EU, EEA or Switzerland please click here)
Under the GRP the beneficiary and his/her dependants pay merely 15% on the income earned abroad but received or remitted to Malta. This rate applies when the minimum amount of tax paid in Malta by the beneficiary and his/her dependants is at least EUR 15,000 after considering any double tax relief which they may be entitled to. This minimum tax requirement is payable in respect of income arising outside Malta, i.e. foreign sourced income. Other Maltese sourced income received by the beneficiary or his/her dependents, will be taxable at a flat rate of 35%.
Dependent persons include the spouse, any children (natural, adopted or in care) under the age of 25, dependent brothers, sisters and direct relatives in an ascending line. The GRP also considers employees of the beneficiary such as carers and other persons that may have been employees of the applicant for the preceding two years, as eligible dependants.
To qualify for this scheme, the beneficiary needs to either own or rent a qualifying owned property or qualifying rented property and occupy this as his principal place of residence worldwide. Qualifying owned property or qualifying rented property has to satisfy the following minimum values:Owned property
The lease needs to be taken out for not less than a twelve month period.
Localities that are considered to be in the south of Malta, for the purposes of the GRP are: Birzebbugia, Bormla (Cospicua), Fgura, Ghaxaq, Gudja, Kalkara, Kirkop, Luqa, Marsascala, Marsaxlokk, Mqabba, Rahal Gdid (Paola), Qrendi, Safi, Santa Lucija, Senglea, Siggiewi, Tarxien, Birgu (Vittoriosa), Xghajra, Zabbar, Zejtun and Zurrieq.
It is strictly prohibited for any other person other than the beneficiary and his/her dependants or household staff to reside in the qualifying property at any time. In addition, the qualifying property may not be let or sub-let.
The beneficiary needs to satisfy the following requirements in addition to the Immovable property requirement specified above:
Although there is no minimum amount of days that the person is required to be in Malta, the beneficiary cannot by in any other jurisdiction for a cumulative period of 183 days in a year.
A non-refundable administrative fee needs to be paid in respect of any application for special tax status in terms of the GRP. The administrative fee is that of EUR 6,000 except where the qualifying owned property is situated in the south of Malta, in which case the administrative fee is that of EUR 5,500.
For more information refer to the Inland Revenue Department dedicated web page.