The Global Residence Programme (GRP)
A Tax Residence Programme for non-EU, non- EEA and non- Swiss nationals
With a stable economy and a high standard of living Malta has attracted a lot of foreign interest over the years. The island's strategic position provides easy access to the rest of Europe whilst providing a relaxing Mediterranean lifestyle and the added benefit of favourable tax laws.
The Malta Global Residence Programme was enacted by Legal Notice 267 of 2014 and builds on Malta’s success in attracting upstanding high-net-worth individuals, investors and entrepreneurs who are not EU, EEA or Swiss nationals. The program grants successful applicants Tax residence in Malta. Beneficiaries of the Malta Global Residence Programme fall within a special tax status where a flat rate of 15% is payable on all foreign income remitted to Malta.
In addition, as a tax resident of Malta, you will not be subject to tax on any foreign-sourced capital gains regardless of whether the funds are remitted to Malta or not. Foreign capital funds invested locally are only taxed on interest or dividends and Malta’s double taxation agreements with many countries will ensure that tax is never paid twice on the same income.
For those individuals with a discerning eye, Malta is the Island in the Mediterranean to find a vast array of benefits for those looking for a peaceful yet vibrant way of life with European access and visa-free travel within the Schengen area.
The main requirements to apply for the Malta Global Residence Programme
In accordance with the regulations outlined for the Malta Golden Residence Programme, there are a number of requirements that are considered and must be met in order for an application to be successful. Applicants will need to meet the following requirements;
- Hold a nationality from outside the EU, EEA and Switzerland – in other words, the applicant must be a third-country national.
- Must not benefit from any other resident, citizenship or employment programme offered by the Maltese authorities.
- Must be in possession of a European health insurance policy that covers the applicant and all dependants on the application.
- A clean criminal record.
- Be in possession of a valid travel document.
- Be self-sufficient.
- Be able to effectively communicate in either Maltese or English.
- A qualifying property.
Applicants will need to hold a qualifying property in Malta which will serve as the primary residence of the applicant in Malta and can only be occupied by the applicant and any dependants. The applicant will need to make one of the following property investments in order to qualify;
- A minimum property purchase of EUR220,000 if the property is located in Gozo or the South of Malta. Should the property be located in other parts of Malta then the property must be purchased at a minimum value of EUR275,000.
- A residential rental investment of no less than EUR9,600 annually or if the property is located on the South of the Island or in Gozo then a minimum yearly rental of EUR8,750 is applicable.
In addition, a non-refundable Application fee of EUR5,500 is applicable on submission of the application for properties in Gozo and the South of Malta or a fee of EUR6,000 if the property is situated in other parts of Malta.
Successful applicants are not required to remain in Malta for a minimum time period but they may not take up residency in any other foreign jurisdiction for more than 183 days per year and will need to meet the minimum payable tax threshold of €15,000 yearly.
Who can apply for the Global Residence Programme?
An individual in his own right – a sole applicant - or with their family can apply for the Global Residence Programme. Qualifying dependants can be classified as;
- The principal applicant's spouse.
- Children under 18 years old, including adopted or in the care of the principal applicant.
- Children under twenty-five years old, who are not economically active.
- Children over twenty-five years old who are disabled and in the care of the applicant.
What are the benefits of The Global Residence Programme?
Successful applicants of the Malta Global Residence Programme will benefit from a unique and favourable tax status and treatment which will allow for;
- A flat tax rate of 15% for all income remitted to Malta.
- No tax in Malta will be charged on income from outside Malta that is not received in Malta.
- No tax in Malta for capital gains realised outside Malta even if received in Malta.
- No inheritance taxes.
- Double taxation relief where applicable on income arising outside of Malta.
- Visa-free travel in the Schengen zone.
How can we help you? The Application Process?
Applications need to be submitted to the Commissioner of Inland Revenue where they will go through a stringent due diligence process. These applications can only be submitted by an Authorized Registered Mandatory.
Malta Sotheby’s International Realty can guide you in finding the perfect property that suits your needs and introduce you to our trusted partners who are registered and accredited to assist you with the delicate process of applying for The Malta Global Residence Programme.
Our trusted partners will prepare all the necessary forms and documents for your application on your behalf. The application includes official documentation such as birth and marriage certificates, background checks, police criminal records, passport copies, health insurance policies etc. Any documents issued outside of the EU need to be accompanied by an Apostille Certificate in terms of the Hauge Convention of the 5th October 1961, abolishing the requirement of Legalisation for Foreign Public Documents.
Whilst gathering all of this information and documentation for the application your trusted advisor will conduct due diligence checks before submitting the completed application to the International Tax Unit from the Commissioner for Revenue of Malta for further due diligence investigation and consideration.
Application Approval – Special Tax Status
Should the applicant successfully pass all the due diligence checks, a short interview with the Commissioner will then follow. Following this, The Commissioner will issue a Letter of “In Principal Approval” it is at this point that the applicant will need to submit proof of the property purchase or residential rental agreement which will serve as the applicant and their dependants’ primary residence.
Once submitted and approved the successful applicant will receive a Permanent residency Card and Tax Identification Number. The entire processing time typically takes 3-4 months from the date of submission. However, the time may vary depending on each file's particularities.
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