The Malta Tax Residence Programme
The Residence Programme - Malta
The Malta Residence Programme is aimed at attracting wealthy individuals from the European Union, Switzerland or the EEA who are interested in taking up tax residence in Malta. The Malta Residence Programme (TRP) Rules were introduced in June 2014.
Which are the main requirements to apply for The Malta Residence Programme?
Applicants have to be EU, EEA and Swiss nationals. Third-country nationals are not permitted to apply for The Malta Residence Programme. However, third-country nationals wishing to apply for residency in Malta for tax purposes can do so by applying for the Global Residence Programme.
Applicants will need to hold a qualifying property in Malta with one of the following characteristics;
- The Purchase of a property for a minimum of €220,000 if located in Gozo or South of Malta or €275,000 if the property is located elsewhere in Malta.
- A residential rental agreement for a minimum of €8,750 if the property is located in Gozo, the South of Malta or €9,600 elsewhere in Malta.
In addition to the above property requirements, an added application fee of €5,500 will be payable for properties in Gozo or the South of Malta or €6,000 for properties situated elsewhere in Malta over and above the initial property investment.
The applicant and his family must be represented by an Authorized Registered Mandatory (ARM) who will process the Residence Programme application on behalf of the applicant.
Applicants will have to pass a "fit and proper" test, have health insurance and submit all the relevant documentation.
Who can qualify for The Residence Programme?
EU nationals, citizens from Iceland, Norway, Lichtenstein and Switzerland may apply for The Malta Residence Programme but it is important to note that Maltese nationals are not eligible for this programme.
The dependants that may be included in the application are;
- The spouse of the main applicant.
- The applicants’ children including adopted minor children, and children in the care and custody of the main applicant who is under 18 years old.
- Any children of the applicant that are eighteen years but under the age of twenty-five, as long as they are not economically active.
- Adult children of the applicant over twenty-five years old who have a disability.
- Dependent brothers, sisters and direct relatives in the ascending line of the main applicant or his/her spouse.
- Adult dependents must be principally dependent on the Main Applicant.
The Residence Programme: Special Tax Status
Applicants taking up residency in Malta through The Residence Programme will benefit from a special and favourable tax status;
- A flat rate of 15% tax will be granted for all income remitted to Malta, and no tax will be charged for income that has been generated outside of Malta but not received in Malta.
- In regards to capital gains, no tax would be chargeable in Malta even if the capital gains are received in Malta, and realized outside.
A minimum tax of €15,000 is payable yearly. Applicants cannot reside in any other jurisdiction for more than 183 days per year. The minimum tax will be paid in full the year in which the special tax status is confirmed or cancelled.
Applicants will also be entitled to double taxation relief otherwise suffered on income arising outside Malta.
Your trusted advisor team will help you prepare the forms and all relevant documentation. Once completed and vetted by our team, the application will be submitted to the International Tax Unit from the Commissioner for Revenue of Malta.
Generally speaking, the application will comprise different documents like birth and marriage certificates, police criminal records, passport copies, bank reference letters, etc. All documents must be legalised and counterlegalised (or Apostilled) and translated into English if in any other language.
Application Approval – Special Tax Status
After passing all due diligence checks, the application will be approved. The Commissioner will issue a Letter of In Principal Approval, at which time the property requirement will need to be fulfilled. A short interview with the Commissioner will then follow suit and the Special Tax Status will be granted to successful applicants.
The entire processing time typically takes three to four months from submission of the application, but this may vary depending on each file's particularities.
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