Malta Individual Tax Programme (ITP)
Secure Malta’s renewable special tax status: 15% tax on qualifying foreign income remitted to Malta, starting from 2027.
All applications must be submitted through an Authorised Registered Mandatory registered with the Maltese Inland Revenue Department.
Individual Tax Programme (ITP) Scope
Malta has introduced the new Individual Tax Programme Rules (ITP) effective January 1, 2027 (Legal Notice 195 of 2026). This initiative will establish a comprehensive framework for managing Malta’s primary tax residency and retirement programmes, thus effectively replacing the existing Tax Residence Programme (TRP), Global Residence Programme (GRP), Malta Retirement Programme (MRP), and the United Nations Pensions Programme (UNPP), thereby consolidating the tax residency process for individuals.
Qualifying foreign income remitted to Malta may be taxed at a rate of 15%, subject to the minimum annual tax requirements based on the beneficiary’s category. The Malta Individual Tax Programme may be suitable for the following individuals:
- Internationally mobile individuals relocating to Malta.
- Entrepreneurs, investors, and family office principals earning foreign income.
- Nationals from the EU, EEA, and Switzerland establishing residence in Malta.
- Third-country nationals with a valid immigration residence permit for Malta.
- Retirees receiving qualifying overseas pensions.
- Former United Nations officials who are receiving a UN pension.
- Surviving spouses receiving a qualifying UN widow’s or widower’s benefit.
- Families looking for a coordinated residence and personal tax framework in Malta.
Applicants must meet several criteria, including maintaining qualifying residential property, having private medical insurance, ensuring sufficient financial resources, and complying with ongoing requirements. It is important to evaluate this program in conjunction with immigration residency, Malta tax residency, domicile status, pension considerations, and the individual’s overall cross-border tax situation.
Malta’s Individual Tax Programme (ITP) Benefits & Requirements:
Income earned outside of Malta and received in Malta may be taxed at a rate of 15%. Additionally, individuals may claim double taxation relief under the Income Tax Act.
According to the rules, a tax rate of 15% (0.15 for every euro) applies to income originating outside of Malta.
No Maltese tax on foreign-source income not remitted to Malta.
No Maltese tax on foreign capital gains, even if the proceeds are received in Malta.
The 15% flat rate is not universally applicable to all types of income. Income that does not qualify for this preferential treatment is generally taxed at a rate of 35%.
The minimum tax is payable in full in the year in which special tax status is granted and in the year in which the beneficiary ceases to possess the status.
Tax paid under the minimum-tax provisions is not refundable.
Applicants may now obtain one of four categories of special tax status:
Global Resident Status
EU, EEA and Swiss Resident Status
Retired Pensioner Status
United Nations (UN) Pensioner Status
Starting January 1, 2027, newly granted special tax status under the Individual Tax Programme Rules of 2026 will be valid for five years.
This status will need to be formally renewed every five years, requiring a renewal application process and a payment of a €2,500 renewal fee.
The Commissioner may renew the status for successive five-year periods provided the beneficiary continues to satisfy all applicable conditions.
Designated dependants may be included in the program. Upon the death of the beneficiary, a qualified dependant may attain the status necessary to inherit the qualifying residence or promptly lease qualifying property, thereby independently meeting the program's requirements.
ITP legal requirements imply that every applicant must:
Maintain qualifying residential property.
Possess stable and regular resources sufficient to support the applicant and dependants.
Hold a valid travel document.
Hold a health insurance covering the applicant and dependants across the European Union
Not be domiciled in Malta and do not intend to establish a Maltese domicile within five years from the application.
Communicate adequately in Maltese or English and to satisfy the fit-and-proper assessment.
Remain represented by an Authorised Registered Mandatary.
An individual cannot benefit from more than one Individual Tax Programme category or from specified other Maltese preferential personal tax regimes at the same time.
TRP / GRP / MRP / UNPP - Transitional Protection Until 31 December 2031
Qualifying individuals considering Malta’s TRP, GRP, MRP or UNPP may wish to review their plans before the end of 2026 to benefit from the current framework. Individuals who qualify and submit an application within the current framework may continue benefiting from:
- the existing property acquisition thresholds;
- the current minimum annual tax obligations;
- the existing application fee structure; and
- the current special tax status framework.
For a further transitional period extending until 31 December 2031, provided they continue complying with the requirements of the programme under which they were admitted. Contact us, and we will arrange a residency planning consultation to guide you through the application process and answer any questions you have.
Individual Tax Programme Category-Specific Eligibility Criteria
EU, EEA & Swiss Resident Status
Available from 1 January 2027 to individuals who are EU, EEA or Swiss nationals, but who are neither Maltese nationals nor permanent residents of Malta, retaining the 15% tax rate on qualifying foreign-source income remitted to Malta.
Minimum Annual Tax: €35,000
Property Purchase Threshold: €700,000 nationwide
Property Rental Threshold: €14,000 annually
Application Fee: €8,500
Special Tax Status: 5-year validity, renewable every 5 years with a renewal fee of €2,500 every renewal cycle.
Global Resident Status
Available from 1 January 2027 to third-country nationals who are not Maltese, EU, EEA or Swiss nationals and who do not hold long-term resident status in Malta, retaining the 15% tax rate on qualifying foreign-source income remitted to Malta.
Minimum Annual Tax: €35,000
Property Purchase Threshold: €700,000 nationwide
Property Rental Threshold: €14,000 annually
Application Fee: €8,500
Special Tax Status: 5-year validity, renewable every 5 years with a renewal fee of €2,500 every renewal cycle.
Retired Pensioner Status
Available from 1 January 2027 to retirees from all nationalities whose pension constitutes at least 75% of their chargeable income and where the entire pension is received in Malta, retaining the 15% tax rate on qualifying foreign-source income remitted to Malta.
Minimum Annual Tax: €15,000
Property Purchase Threshold: €700,000 nationwide
Property Rental Threshold: €14,000 annually
Application Fee: €8,500
Special Tax Status: 5-year validity, renewable every 5 years with a renewal fee of €2,500 every renewal cycle.
United Nations (UN) Pensioner Status
Available from 1 January 2027 to beneficiaries receiving a UN pension or a qualifying widow’s or widower’s benefit, provided that at least 40% of the relevant pension income is received in Malta, retaining the 15% tax rate on qualifying foreign-source income remitted to Malta (excluding the UN pension).
Minimum Annual Tax: €20,000
Property Purchase Threshold: €700,000 nationwide
Property Rental Threshold: €14,000 annually
Application Fee: €8,500
Special Tax Status: 5-year validity, renewable every 5 years with a renewal fee of €2,500 every renewal cycle.
Application Process for the Malta Individual Tax Programme
Eligibility Assessment
The application must be submitted through an authorised registered mandatory to the Commissioner for Tax and Customs.No fixed processing timeline. The duration of the process will be contingent upon the applicant's specific circumstances, the readiness of required documentation, property arrangements, and the review conducted by the Commissioner.The initial stage is designed to ascertain the following elements: the appropriate programme category, whether the anticipated 15% tax obligation surpasses the minimum annual tax requirement, the applicant's immigration residence status, implications related to Malta tax residence and domicile, eligibility for pensions, when applicable and whether the consideration of ordinary resident non-domiciliary taxation is warranted.
Obtaining Property & Health Insurance
Property documentation and insurance coverage must meet the applicable requirements at the time of submission. The applicant is responsible for securing a qualifying residential property and obtaining the necessary health insurance for both themselves and their dependents.
Application Submission
The Authorised Registered Mandatory is responsible for the preparation and submission of the application, along with the accompanying evidence, declarations, and due diligence documentation.An administrative fee of €8,500 is required at the time of application submission. The Commissioner reserves the right to request additional documents, information, certifications, or declarations as deemed necessary.The special tax status commences upon the Commissioner issuing a written determination confirming that the applicant qualifies as a beneficiary.
ITP Written Confirmation
After a successful review of the applicant's due diligence and application, the applicant will receive a written determination from the Commissioner confirming that the applicant qualifies as a beneficiary which initiates the special tax status.
Individual Tax Programme Annual Compliance & Five-Year Renewal
To remain compliant, the beneficiary must continue to:
- Qualifying property retained and occupied as main residence
- Private health insurance maintained
- Minimum tax paid by the statutory deadline
- Annual compliance return submitted by 30 April
- No Maltese nationality, long-term residence or permanent residence obtained
- Not resident in another jurisdiction for more than 183 days per year
- Pension remittance conditions maintained (if applicable)
- Financial self-sufficiency demonstrated
- Authorised registered mandatary retained
- Dependant changes notified within four weeks
- Continued fit and proper status of beneficiary and dependants
Prior to expiry, continued eligibility will be reviewed and a renewal application submitted with the required supporting documents along with a €2,500 renewal fee. Renewal is available for further five-year periods.
Get In Touch With Us
As Authorised Mandatories (ARM00905), Papilio Services Limited, we are equipped to assist you in obtaining a special tax status under one of the aforementioned Malta Individual Tax Programme categories. Contact us, and we will arrange a residence planning consultation to understand your situation and start the application process for the Malta ITP.
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- Papilio Services Limited 168 St Christopher Street, Valletta, VLT 1467, Malta, Europe
- +35622582000
- enquiries@papilioservices.com