Malta residence programme

The Malta Residence Programme Rules (the “Rules”), enacted by Legal Notice 270 of 2014, provides for a Malta Special Tax Status which can be availed of by all EU/EEA/Swiss nationals. The Rules entitle successful applicants to a Special Tax Status provided they comply with a number of criteria listed hereunder.

Tax treatment

  • All foreign sourced income received by the beneficiary or a dependant in Malta shall be taxable at 15%, with the possibility of claiming double tax relief on such income subject to a minimum tax of €15,000 annually;
  • Any other chargeable income received by the beneficiary will be charged to tax at the rate of 35%.
  • Possibility to claim double tax relief while any income arising in Malta is subject to tax at 35%.

Eligibility

In order to qualify for the benefits provided for in the Rules the applicant must:

  • hold a qualifying property which must be occupied only by the applicant and dependents:

A qualifying property means:

a property situated either in Malta for a value of €275,000 or situated in Gozo or the South of Malta for a value of €220,000;

a rented qualifying property of at least €9,600 per annum for a property situated in Malta or €8,750 per annum for a property situated in Gozo or the South of Malta;

  • be in receipt of stable and regular resources which are sufficient to maintain himself and dependants;
  • not be a Maltese or a third country national;
  • not benefit under any other Malta Special Tax Status;
  • 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;
  • be in possession of a valid travel document;
  • be able to adequately communicate in either one of Malta’s official languages;
  • be a fit and proper person.

Ongoing obligations

In order to maintain one's special tax status, a beneficiary is required to:

  • retain qualifying property holding (as defined above);
  • not become a Maltese or third country national;
  • not become a permanent resident of Malta;
  • retain the necessary insurance;
  • not stay in any other jurisdiction for more than 183 days; and
  • adhere to all special reporting obligations and notifications.

Application process

Applications for special tax status under the Rules are to be made to the Government of Malta through any Maltese Authorised Registered Mandatory. Grant Thornton is authorised and regulated by the Government of Malta to handle and submit applications for residence permits under the various residence programmes available under Maltese Law.

Registration fee

A non-refundable one-off registration fee of €6,000 must be paid by the applicant upon submitting the application. This fee is reduced to €5,500 if the qualifying property is situated in the South of Malta.

Our immigration services

Grant Thornton has extensive experience in the areas of citizenship and residence planning and in the handling of legal and tax matters relevant to the structuring and planning of personal wealth and personal interests and business worldwide having built a sterling reputation. Our Citizenship & Residence Planning team is led by partner Dr Wayne Pisani.

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