Who is eligible to apply?
The Global Residence Programme is designed to attract individuals who are not nationals of the EU, EEA or Switzerland and who are not “long-term residents” of Malta
- The applicant must hold a ‘Qualifying Owned Property’ situated in Malta valued at not less than €275,000 or if in Gozo or in the south of Malta, not less than €220,000;
- Alternatively, the applicant must lease a ‘Qualifying Rental Property’ situated in Malta that has a rental value of not less than €9,600 per year or not less than €8,750 per year for a property situated in Gozo or in the south of Malta
- The applicant must not be the recipient of any other tax incentive programme in Malta;
- The applicant must receive stable and regular income or possess resources that are sufficient to maintain himself and his dependents;
- The applicant must be in possession of a valid travel document;
- The applicant must be in possession of health insurance covering himself and his dependents for all health risks across the EU normally covered for Maltese nationals;
- The applicant can adequately communicate in one of the official languages of Malta (English or Maltese);
- The applicant must be a fit and proper person (an international due diligence exercise is carried out by the Inland Revenue Department prior to granting the special tax status);
- A non-refundable one-off registration fee of €6,000 must be paid upon application. However, where the qualifying property holding is situated in the south of Malta, the non-refundable registration fee shall be €5,500.
Once the special tax status has been acquired, tax is chargeable to the person on the basis of his/her income as follows:
- Foreign sourced income received in Malta is taxable at the rate of 15% with the possibility of claiming double taxation relief subject to the minimum annual tax liability referred to below;
- The individual must pay a minimum tax liability of €15,000 per year;
- Other income that is not taxable under these rules is taxed separately at the rate of 35%;
- The minimum tax of €15,000 or 15% of your declared income, whichever is higher, will be payable not later than 30 April of the year in which the income is received in Malta, and such payment must be accompanied by a return claim made to the Commissioner providing proof that all the requirements continue to be satisfied.
An individual who has been granted special tax status must comply with the following obligations:
- The individual must not become a Maltese national or a citizen of the EU, EEA or Switzerland;
- The individual must not become a “long-term resident”
- The applicant must retain a qualifying property;
- The applicant must retain health insurance and continue to have stable resources;
- The individual must not stay in any other jurisdiction for more than 183 days in a calendar year;
- Special reporting obligations (the filing of an annual tax return) and notifications must be complied with.
Authorised Registered Mandatary
An application for special tax status must be made through the services of a person that qualifies as an ‘Authorised Mandatary’ and is registered as such with the Inland Revenue Department.
Prospera Europe Ltd is happy to offer this service as it is registered as an Authorized Mandatary.
Contact us if you wish to receive more information about this programme.
Need more information or help?
Our professional team is always ready to help you resolve whatever questions you may have regarding our products and services.