As of the 1st July, the Malta Global Residence Programme has been out in full force. This new initiative welcomes Non-European Individuals to apply for residency in Malta and benefit from a Special Tax Status under a few defined regulations.

Summary

This page provides a detailed reference of the new Malta Global Residence Programme, and offers a brief guideline regarding the other benefits that arise when purchasing or letting real estate in Malta. It’s the objective of the Maltese Government to attract foreign investment whereby the individual must purchase or rent a property in Malta as part of the eligibility criteria.

The property of choice will then become known as the main residence of that individual, and based on that they'll be taxed at a favourable rate of 15% of the income generated from abroad. Purchasing real estate in Malta is a safe investment in terms of capital appreciation; while the actual process is regulated, and written contracts are in English, everything may be thereafter translated into one of the official European Languages.

The rental process is also quite efficient; contracts are legally binding and consumer rights are protected in line with European Law. As leaders in the Maltese real estate market, we always strive to give our clients the most professional service on the island, guiding them through the process from their arrival right up until the transaction is complete, and beyond.

To be eligible for the programme, there are a number of important requirements the beneficiary needs to satisfy to be successful. Read on, and you’ll find a detailed description drawn from recent changes in the Income Tax Act that have been established to provide for the Malta Global Residence Programme:

This Residence Programme may be particularly interesting for Asian, South African, and American individuals. The Maltese Government is expected to revise other schemes that will be favourable for European/SWISS/EAA Nationals.

According to Legal Notice 167 of 2013 and included in the Income Tax Act (CAP. 123), the following are the Global Residence Programme Rules, 2013:

• An Individual must apply for Global Residence status through an Authorised Mandatory, who is a person in possession of a warrant to practice as an Advocate under the Code of Organization and Civil Procedure, a person who has been appointed Notary Public, an Accountant, a member of the Institute of Financial Practitioners, Malta Institute of Taxation, Malta Institute of Accountants and the Institute of Management;
• An Individual must not be a beneficiary under the Resident Scheme Regulations, Malta Retirement Programme rules, the High Net Worth Individuals – Non-EU/EAA/Swiss National Rules, the Qualifying Employment in Innovation and Creativity Rules or the Highly Qualified Persons Rules. Transitory provisions have also been published for this Scheme;
• An Individual must not reside with a beneficiary of any of the above-mentioned schemes in article 2;
• An Individual may apply to the Commissioner for special tax status under the Global Residence Programme by paying a non-refundable administrative fee of six thousand euro (€6,000) in case the applicant will reside in Malta and five thousand and five hundred euro (€5,500) in case the applicant intends to reside in Gozo or in the South of Malta (South locations mentioned below);
• An Individual must reside in a “Qualifying owned property” or a “Qualifying rented property”:
  
  • A “Qualifying owned property” is a property that is not less in value than €275, 000 if located in Malta or in the case where the applicant will reside in Gozo or in the South of Malta, the property must not be less in value than €220,000;
  • A “Qualifying rented property” is a property that is rented for no less than €9,600 per annum if located in Malta, whereas if the property will be located in Gozo or in the South of Malta, the rental price must not be less than €8,750 per annum;
  • Other determining criteria are the following. The individual must:
    
    • Be in receipt of stable and regular resources which are enough to maintain himself and his dependants without recourse to the social assistance system in Malta.
    • Be in possession of a valid travel document;
    • Be in possession of health insurance in respect of all risks across the whole of the European Union normally covered for Maltese Nationals for himself and his dependants.
    • Be fluent in one of the official languages of Malta, and
    • Be fit and healthy.

Tax benefit

If you're successful in your application and are accepted by the Commissioner of Inland revenue for the Malta Global Residence Programme, you’ll be taxed at 15% on any income derived from outside the country in the year preceding the year of assessment, which is received in Malta by the beneficiary, as well as their spouse and children. Here, it’s possible to claim relief from double taxation under article 74(a) and (b) of the Taxation Act. The minimum amount of tax payable is €15,000 for any year of assessment.