Malta Tax Residency Programmes

Income Tax Provisions – Remittance Tax (Income Received in Malta)

A person who is a Malta tax resident but not domiciled in Malta for tax purposes is charged the standard progressive rate of tax on any income arising in Malta.

However, on any income arising outside Malta received in (i.e. remitted to) Malta is a fixed tax rate of 15%. Furthermore, there is no tax on income or capital gains arising outside Malta which isn’t remitted to Malta.

Note: You’re unable to apply for tax residency in Malta if you already have a long-term residence or a permanent residence certificate in Malta.

Malta Tax Residency Programmes

There are four options available for a non-domiciled individual wanting to take up tax residency in Malta. However, this does depend on nationality, background and personal circumstances.

If you’re unsure of what programme is most suitable, contact us for a free consultation to discuss Malta residency requirements.

The Residence Programme (RP)

• EU/EEA/Swiss nationals only (excluding Maltese nationals)
• Tax rate: 15% on remitted income
• A minimum tax requirement: €15,000 per annum
• Property Requirements:
  • Rent: €9,600pa
  • Buy: €275,000
• Application Fee: €6,000

Any non-Maltese national, who is an EU/EEA/Swiss national, may apply for status under The Residence Programme (RP).

Status under the Malta Residence Programme entitles the holder to a flat rate of tax of 15% on any income arising outside Malta which is received in Malta, subject to a minimum tax of €15,000 per annum (after deduction of double taxation).

There is no minimum period of stay in Malta. Still, the tax resident in Malta must not stay in any one other jurisdiction for periods amounting to 183 days or more in any calendar year.

Several conditions must be satisfied for a person applying for status under the Residence Programme. These include a qualifying property holding (rented for at least €9,600 per annum or purchased for at least €275,000), possession of valid sickness insurance and passing a “fit and proper” due diligence test. A lower threshold for the qualifying property holding is available for properties situated in Gozo or the south of Malta.

To apply for tax residency status under the Residence Programme, you must apply through an authorised registered mandatory (such as Papilio Services Limited). Furthermore, the applicant must pay a non-refundable government application fee of €6,000 upon application.

Download – Malta Residence Programme Legislation [S.L.123.160]

• Non-EU/EEA/Swiss nationals only
• Tax rate: 15% on remitted income
• A minimum tax requirement: €15,000 per annum
• Property Requirements:
  • Rent: €9,600pa
  • Buy: €275,000
• Application Fee: €6,000

Any non-EU/EEA/Swiss nationals may apply for status under the Global Residence Programme (GRP).

Much like the Malta Residence Programme, status under the Global Residence Programme (GRP) entitles the holder to a flat rate of tax of 15% on any income arising outside Malta which is received in Malta, subject to a minimum tax of €15,000 per annum (after deduction of double taxation).

There is no minimum period of stay in Malta. Still, the tax resident in Malta must not stay in any one other jurisdiction for periods amounting to 183 days or more in any calendar year.

There is no minimum period of stay in Malta. Still, the tax resident in Malta must not stay in any one other jurisdiction for periods amounting to 183 days or more in any calendar year.

Several conditions must be satisfied for a person applying for status under the Global Residence Programme. These include a qualifying property holding (rented for at least €9,600 per annum or purchased for at least €275,000), possession of valid sickness insurance and passing a “fit and proper” due diligence test. A lower threshold for the qualifying property holding is available for properties situated in Gozo or the south of Malta.

To apply for tax residency status under the Global Residence Programme, you must apply through an authorised registered mandatory (such as Papilio Services Limited). Furthermore, the applicant must pay a non-refundable government application fee of €6,000 upon application.

Download – Global Residence Programme Legislation [S.L.123.148]

The Malta Retirement Programme (MRP)

• Any EU or Non-EU nationals (excluding Maltese nationals)
• Tax rate: 15% on remitted pension income
• A minimum tax requirement: €7,500 per annum (+€500 per additional applicants)
• Property Requirements:
  • Rent: €9,600pa
  • Buy: €275,000
• Application Fee: €2,500

Any non-Maltese national, who is an EU or Non-EU national, may apply for status under the Malta Retirement Programme (MRP).

Status under the Malta Retirement Programme entitles the tax resident to a flat rate of tax of 15% on any pension income arising outside Malta which is received in Malta, subject to a minimum tax of €7,500 (+€500 per dependent) per annum (after deduction of double taxation ).

Applicants under the Malta Retirement Programme must be resident in Malta for a minimum of 90 days a year, and you must not stay in any one other jurisdiction for periods amounting to 183 days or more in any calendar year.

Several conditions must be satisfied for a person applying for status under the Malta Retirement Programme. These include a qualifying property holding (rented for at least €9,600 per annum or purchased for at least €275,000), possession of valid sickness insurance and passing a “fit and proper” due diligence test. A lower threshold for the qualifying property holding is available for properties situated in Gozo or the south of Malta.

The pension income of the tax residency in Malta must constitute at least 75% of the person’s chargeable income and must be all received in Malta.

To apply for tax residency status under the Malta Retirement Programme, you must apply through an authorised registered mandatory (such as Papilio Services Limited). Furthermore, the applicant must pay a non-refundable government application fee of €2,500 upon application.

Download – Malta Retirement Programme Legislation [S.L.123.134]

• For both EU/EEA/Swiss and Non-EU/EEA/Swiss nationals (excluding Maltese nationals)
• Tax rate: 15% on earned income in Malta

The objective of the Highly Qualified Persons Rules, is to attract highly qualified persons to occupy “eligible office” with companies licensed and recognized by the Competent Authority regulating the specific sector.

• EU/EEA/Swiss nationals – 5 year programme that can be extended to 10 years.
• Non-EU/EEA/Swiss nationals – 4-year programme that can be extended to 8 years.

An individual may benefit from the 15% tax rate if they satisfy all of the following employment conditions and rules:

1. Applicants must hold “Eligible office” in the financial services, aviation or gaming sectors. (click here to see specific job titles)
2. Receive employment income no less than €84,991 per annum that is subject to tax in Malta as of 2019;
3. Obtain an employment contract subject to the laws of Malta;
4. Have at least five years of professional work experience;
5. Hold sufficient professional qualifications related to the field of work;
6. Prove that you can perform their duties sufficiently for the eligible office (more information below regarding what qualifies as ‘eligible office’);
7. Not have benefitted from the special income tax provisions relevant to Investment Services and Insurance Expatriates;
8. Receive regular and stable income which are of a sufficient level to be able to support yourself and any dependents without needing the assistance of the social security system in Malta;
9. Reside in suitable accommodation in Malta;
10. Not be domiciled in Malta;
11. Have a valid travel document;
12. Hold European health insurance coverage for yourself and your family.

Download – Highly Qualified Persons Rules Legislation [S.L.123.126]

• Any non-Maltese national can apply for this programme
• Tax rate: 15% on remitted UN pension income
• A minimum tax requirement: €10,000 per annum (+€5,000 for a spouse)
• Property Requirements:
  • Rent: €9,600pa
  • Buy: €275,000
• Application Fee: €4,000

Any non-Maltese person may apply for status under the United Nations Pensions Programme (UNPP).

Tax resident status under the United Nations Pensions Programme offers a tax exemption on the UN pension income. Furthermore, a flat rate of tax of 15% remitted to Malta, and this remitted income is subject to a minimum tax of €10,000 (plus an additional €5,000 for a spouse in receipt of a UN pension) per annum (after deduction of double taxation relief).

There is no minimum period of stay in Malta; however, the Malta tax resident must not stay in any one other jurisdiction for periods amounting to 183 days or more in any calendar year.

Several conditions must be satisfied for a person applying for status under the United Nations Pensions Programme. These conditions include a qualifying property holding (rented for at least €9,600 per annum or purchased for at least €275,000), possession of valid sickness insurance and passing a “fit and proper” due diligence test. A lower threshold for the qualifying property holding is available for properties situated in Gozo or the south of Malta.

You must receive at least 40% of your UN pension in Malta.

You must also apply for Malta tax residency status under the United Nations Pensions Programme through an authorised registered mandatory (such as Papilio Services). You must also pay a non-refundable government application fee of €4,000 on application.

Download – United Nations Pensions Programme Legislation [S.L.123.165]

Papilio Services Limited is an authorised registered mandatory and can handle all of any requests for application and registration for non-domiciled individuals.

If you’re looking for jobs in Malta, visit Papilio Talent for recent careers posted.

If you have any further questions or queries regarding tax residence in Malta, please do not hesitate to call us directly on +356 2258 2000 or email us on enquiries@papilioservices.com.