Malta Residence Programmes

An introduction to Malta’s Residence Programmes

There are a number of residency programmes that the Maltese government has launched over the last few years so in this blog we will summarise the various options available. These programmes can be ideal for those individuals or families looking for relocation, retirement, Schengen mobility, tax planning as well as corporate motives such as setting up a new international business headquarters or holding companies and family trusts. Here is an overview of the various programme’s currently on offer:

Malta Ordinary Residence Scheme

The Malta Ordinary Residence Scheme provides EU/EEA nationals the option to move to Malta and set it up as their main tax location. Applicants for this scheme must buy or rent a property in Malta and must prove financial independence. If approved the applicant will be supplied with a Maltese ID card which is valid for 5 years. Successful applicants of this scheme who do not live in Malta are taxable on a remittance basis and furthermore, ordinary residents are not taxed on their global income if it is not transferred to Malta. Also, Capital Gains Tax is not payable on assets outside of Malta.

The Malta Residence Programme (TRP)

This programme allows affluent EU/EEA nationals and their families the option to live in Malta as residents (providing they do not already have permanent residence status in Malta). Successful applicants may also employ household staff in their registered property (subject to various procedures being adhered to). To qualify for the TRP programme the applicant must own or rent a property in Malta which must be their main worldwide residence. In return, the TRP programme grants the applicant and their family the reduced rate of 15% income tax on any income they bring into Malta. The minimum threshold for renting a property is €8750 (in the south of Malta or Gozo) or €9600 anywhere else. When purchasing a property, the minimum investment threshold is €220,000 (in the south of Malta or Gozo) or €275,000 for any other location on the island.

The Malta Global Residence Programme (GRP)

This programme is very similar to the previously mentioned TRP but is designed for non-EU nationals and their families. It offers the same tax rate of 15% income tax and also allows the successful applicant to employ staff at the registered Maltese address as long as they own or rent a property in Malta. The minimum threshold for renting a property is €8750 (in the south of Malta or Gozo) or €9600 anywhere else. When purchasing a property, the minimum investment threshold is €220,000 (in the south of Malta or Gozo) or €275,000 for any other location on the island.

Malta Residence by Investment

This programme offers the successful applicant the benefits of the ease of travel as a result of the Schengen Area Treaty from 2007 and is aimed at individuals and their families who are not EU/EEA members and are not already in any other Maltese residency programme. To qualify the applicant must either (a) earn at least €100,000 from outside of Malta or (b) have capital of not less than €500,000 and rent a property in Malta for at least 5 years for a minimum of €10,000 per year (if located in Gozo or the South of the Island) or €12,000 per year if the property is located anywhere else in Malta. There is also a required Maltese investment of €250,000 which must be held for the 5-year duration. The taxation for this programme is structured so that the successful applicant only pays tax on foreign income remitted to Malta and are not taxed on foreign-sourced capital brought into Malta. The income tax rate is 15% like the other programmes mentioned above.

Malta Citizenship by Investment Programme (IIP)

Often referred to as the IIP programme, it is the first EU approved citizenship scheme for EU/Non-EU individuals and families who make an outstanding contribution to the island of Malta. This citizenship is granted for life and can be inherited by future generations of the family. It also allows the benefactor(s) full access to investment opportunities in Malta and throughout the EU but most importantly it grants the successful applicant a full Maltese and EU passport, thus allowing full unrestricted travel. There are strict qualifying criteria for this programme including a €650,000 contribution, €150,000 in Government bonds and a higher property investment threshold of €16,000 per year for rentals and €350,000 when buying.

For more details about any of these programmes please get in touch with us and we will be able to discuss all your requirements in detail and make sure you get the right advice.

Call +356 2131 0800 / 0088 or email: perry@perry.com.mt

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