Malta Residence Programme (TRP)
The Malta Residence Programme is designed to attract affluent individuals from the European Union, Switzerland, or the European Economic Area who seek to establish Malta as their principal residence while benefiting from Malta’s tax system.
The Residence Programme
Launched to attract EU/EEA/Swiss entrepreneurs, High-Net-Worth Individuals, and investors, the Malta Tax Residency Programme grants applicants special tax status by setting the personal tax rate to 15% on external sources of income remitted to Malta.If you’re a non-EU/EEA/Swiss national and looking for a similar Malta tax residency programme, the Malta Global Residence Programme is what you’re looking for.As Authorised Mandatories (ARM00905), we can help our clients obtain this Malta tax residence programme. Contact us and we will arrange a residence planning consultation to understand your situation and start the application process for the Malta Residency Program.
Malta Residence Programme
No minimum stay requirement in Malta.
15% tax on income arising outside of Malta that is remitted into Malta.
0% tax on income arising outside of Malta that is not remitted into Malta.
0% capital gains tax on income realised outside of Malta.
Malta is located strategically with prime international flight and sea connections.
English speaking environment.
For a successful application to the Malta tax residency programme several conditions must be satisfied. If applying, you must:
Be an EU/EEA/Swiss national.
Receive regular and stable income which are of a sufficient level to be able to support yourself and any dependents.
Not be a person who is benefiting from any other Maltese residence or employment programme (such as the Highly Qualified Persons Rules or Malta Retirement Programme)
Must hold a valid travel document.
Hold a European Health Insurance policy for yourself and any dependents.
Be able to communicate adequately in Maltese or English.
Be a fit and proper person with no criminal record.
Hold a qualifying property. This property could be purchased in Malta for at least €275,000 (or €220,000 if based in Gozo or the South of Malta). On the other hand, applicants can also rent a property in Malta for at least €9,600 per annum (or €8,750 if rented in Gozo or the south of Malta).
Not reside in another one jurisdiction for longer than 183 days in a calendar year.
Pay the minimum tax requirement of €15,000 each year.
Any applicants to this programme must adhere to certain obligations to remain qualified for this programme. The applicant must:
Not reside in another one jurisdiction for more than 183 days in a calendar year.
Hold a qualifying property through the duration of their residence.
Have health insurance which covers the main applicant and any dependents.
Pay the minimum tax at the beginning of each calendar year.
The tax rules are clear for any income earned and where it is remitted to.
There is no Malta tax on income arising outside Malta which is not received in Malta.
There no Malta tax on capital gains realised outside Malta even if this income is received in Malta.
There is a flat rate of 15% tax on any income arising outside Malta which is received in Malta (such as dividends)
Any income arising in Malta and capital gains realised in Malta is taxed at the higher rate up to 35% (such as salaried income)
The Residence Programme allows for the following persons to fall under the definition of dependents:
The applicant’s spouse.
Minor children, who are in the care of the applicant.
Persons under the age of 25, including adopted children who are in the custody of the applicant.
Children, including adopted children, who are not minors but who because of illness or disability, are unable to support themselves.
A Tax Residence Certificate (TRC) may be issued by the Maltese Inland Revenue Department, however for the applicant to receive a Tax Residence Certificate, they must meet the Maltese Inland Revenue’s conditions to be classed as a tax resident of Malta in terms of Maltese domestic law.
Malta Residence Programme Application Process
Applicants must complete an application form and questionnaire ready to present to the Maltese Government. This would be completed with guidance from the Authorised Mandatory. Moreover, there will be additional KYC documents required to be given to the Authorised Mandatory.
After successfully completing the paperwork, the Authorised Mandatory will submit your documents to the authorities along with your non-refundable application fee of €6,000 (€5,500 if the applicant is settling in Gozo or the south of Malta).
The Maltese Government will check your documentation and conduct relevant interviews with the main applicant.
If successful, the main applicant will receive a letter of approval in principle. This letter is valid for 12 months. To benefit from the Malta tax residency programme, you must provide evidence that:
The minimum tax of €15,000 has been paid.
The accommodation requirements have been met.
The applicant and dependents have health insurance coverage.
On the successful completion of the application process, the applicant would qualify for Malta Residence and subsequently benefit from 15% tax rate.
The Malta Residence Programme Guide
All the facts about The Residence Programme are outlined in our simple infographic. If you need more detailed information why not download our Residence Programme Guide?
Get In Touch With Us
If you are considering the Malta Residence Programme, Papilio Services can help! We are accredited agents through Identity Malta to offer this tax residency programme. Contact us and we will arrange a residency planning consultation to guide you through the application process and answer any questions you have
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- Papilio Services Limited 168 St Christopher Street, Valletta, VLT 1467, Malta, Europe
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