The Malta Global Residence Programme (MGRP) is a government-backed program that allows high-net-worth individuals to obtain special tax status in the Mediterranean country. The MGRP offers foreign investors and entrepreneurs the opportunity to live and work in Malta. It provides an attractive environment with low taxes, no capital gains tax, and favorable company incorporation rules.
Benefits of the MGRP
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 Residency Programme)
The above benefits are without the obligation for long-term residency in Malta. The MGRP allows for mobility, flexibility and the ability to visit Malta as often as one wishes without losing tax residence status!
Special Tax Status
Being the programme’s highlight, the special tax status is Malta’s way of attracting investors to obtain Malta residence. The Malta Global Residence Programme offers foreign nationals an opportunity to gain Malta tax residency following the acquisition of residential property in Malta. What does the special tax status entail?
- Beneficiaries are taxable at the rate of 15% on foreign source income remitted to Malta.
- Foreign source capital gains are not taxable even if remitted to Malta.
- Possibility to claim double taxation relief.
- Malta source income is charged as separate income at the rate of 35%.
- In any assessment year, a minimum tax of €15,000 is payable 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 in the custody of the beneficiary or the beneficiary’s spouse who are not minors but who cannot maintain themselves because of circumstances of illness or disability of serious gravity
Programme Rules
Before applying for Malta GRP, applicants must ensure that they meet the requirements outlined in Malta’s Residence Programme. All applicants are expected to be familiar with Malta’s Residence Programme Rules before moving forward with their application. Applicants would also need to meet the following continuing obligations:
- Not become a Maltese, EEA or Swiss national
- Retain the Qualifying Property
- Not becoming a long-term resident
- Retain insurance for yourself and your family
- Continue to have stable income resources
- Must not stay 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. 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. The qualifying property may not be let or sublet.
How can Integritas Endevio help?
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 on becoming 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!
Integritas Endevio is a team of immigration experts based in Malta. We have years of experience in Malta immigration procedures and Malta investment services. We work closely with the authorities and Malta immigration lawyers to ensure that all requirements are met.
The Malta Global Residence Programme is straightforward, with no ambiguity or room for error. Integritas Endevio can further help you in understanding Malta investment rules and the tax system. Are you ready for your special tax status? Get in touch with us now!
