The Malta Global Residence Programme (MGRP) is a government-backed programme that allows high-net-worth individuals to obtain special tax status in the Mediterranean country. Furthermore, the MGRP offers foreign investors and entrepreneurs the opportunity to live and work in Malta. It also provides an attractive environment with low taxes, no capital gains tax, and favorable company incorporation rules.
Benefits of the Malta Global Residence Programme
Besides living and working in the heart of Europe, successful applicants would be able to benefit from several other advantages such as:
- Special tax status in Malta
- Possibility to pass on the special tax status to one’s heirs under certain terms
- A Maltese residence permit (via Malta Permanent Residence Programme)
The above benefits are without the obligation for long-term residency in Malta. Primarily, the Malta Global Residence Programme allows for mobility, flexibility and the ability to visit Malta as often as one wishes without losing tax residence status!
Special Tax Status
As a key feature of the programme, Malta's special tax status serves as an attractive incentive for investors seeking Maltese residency. The Malta Global Residence Programme offers foreign nationals the opportunity to attain Malta tax residency by acquiring residential property in the country. But what exactly does this special tax status offer?
- Tax Rate on Foreign Income: Beneficiaries are taxed at a favorable rate of 15% on foreign-sourced income that is remitted to Malta.
- Exemption on Capital Gains: Foreign-sourced capital gains are exempt from taxation, even when remitted to Malta.
- Double Taxation Relief: Beneficiaries may also claim double taxation relief, further enhancing the program's appeal.
- Malta-Sourced Income: Income sourced within Malta is taxed separately at a rate of 35%.
- Minimum Tax Requirement: Regardless of income, a minimum tax of €15,000 is payable annually by the tax status holder.
Eligibility Criteria for Malta Global Residence Programme (MGRP)
The MGRP programme is open to third-country nationals and their dependents who are at least 18 years old. All applicants must:
- Have health insurance (including the dependents)
- Have stable, regular resources, and pass a Fit and Proper Test
- Have a valid travel document
- Be fluent in one of the official languages of Malta
- Hold a qualifying property
- Be represented by an Authorised Registered Mandatory (ARM).
An applicant can include the following dependents in their application:
- Spouse
- Minor children and children who are in the care and custody of the beneficiary or the beneficiary’s spouse.
- Adopted children
- Children under the custody of the beneficiary or the beneficiary’s spouse, who are no longer minors but are unable to support themselves due to severe illness or disability.
Programme Rules
Before applying for the Malta Global Residence Programme, applicants must ensure they meet the requirements outlined in Malta’s Residence Programme. It is essential that all applicants familiarize themselves with the Malta Residence Programme Rules before proceeding with their application. Additionally, applicants must adhere to the following ongoing obligations:
- Citizenship Restrictions: Applicants must not become Maltese, EEA, or Swiss nationals.
- Property Retention: Applicants must retain ownership of the Qualifying Property.
- Residency Status: Applicants must not become long-term residents.
- Insurance Coverage: Applicants must maintain insurance coverage for themselves and their families.
- Financial Stability: Applicants must continue to demonstrate stable income resources.
- Residence Limitation: Applicants must not reside in any other jurisdiction for more than 183 days in a calendar year.
Required Criteria for Property Investment
An applicant of the special tax status, who is not a long-term resident, must hold a qualifying property. The Malta GRP defines the qualifying property as a house, apartment, office or commercial premises in Malta. Notably, applicants may either:
- Purchase an immovable property in Malta for a value of not less than €275,000. If the property is located in the south of Malta or Gozo, the value shall not be less than € 220,000
OR
- Rent an immovable property in Malta for not less than €9,600 annually. If the property is located in the south of Malta or Gozo, the value shall not be less than €8,750 annually.
It is important to note that no person other than the beneficiary and their dependents or household staff may reside in the qualifying property at any time. Furthermore, the qualifying property may not be let or sublet.
How can Endevio help you?
In conclusion, Malta’s jurisdiction is an attractive option if you are looking for opportunities to relocate. If you are thinking of becoming a resident of Malta, some of the many factors that rank Malta amongst the top ones are its steady economic growth, geographical location, and booming sectors such as financial services, maritime, aviation, iGaming and real estate.
Everyone who decides to become a resident of Malta is attracted to its natural beauty and architecture, relaxed lifestyle, affordable cost of living, and rich historical culture. The Malta Global Residence Programme is one of the many ways to establish Malta residence!
Endevio has a team of immigration experts based in Malta. Moreover, besides being an Authorized Registered Mandatory, we have years of experience in Malta immigration procedures and Malta investment services. Effectively, we work closely with the authorities and Malta immigration lawyers to ensure that all requirements are met.
