Malta’s Individual Tax Program will replace the current Global Residence Programme on 1 January 2027. The new rules keep the 15 % tax on foreign income that residents remit to Malta, but raise the minimum annual tax for most applicants and increase property‑investment thresholds.
Tax rates and minimums
- Foreign income (for the applicant, spouse and minor children) is taxed at 15 % with credit for foreign tax paid.
- Other Maltese‑source income is taxed at 35 %.
- Minimum annual tax
- Non‑EU/EEA/Swiss applicants: €35,000 (≈ US $40,000) – up from €15,000 under the previous programme.
- Retired pensioners: €15,000.
- United Nations pensioners: €20,000 on non‑pension income (UN pension itself remains exempt).
The minimum tax is payable each year by 30 April, is non‑refundable, and must be paid in the first and last year of the five‑year status period.
Applicant categories
- Third‑country nationals (non‑EU/EEA/Swiss) seeking global resident status.
- EU, EEA and Swiss nationals who are not Maltese citizens or permanent residents.
- Retired pensioners – must receive the entire pension in Malta, and the pension must represent at least 75 % of chargeable income.
- United Nations pensioners – must bring at least 40 % of the UN pension into Malta.
Property and lease requirements
- Purchase: minimum value €700,000 (≈ US $801,000) anywhere in Malta or Gozo.
- Lease: minimum annual rent €14,000.
- Under the former GRP the thresholds were €275,000 (purchase) and €9,600 (lease), with lower limits in southern Malta and Gozo.
Applicants who bought property before the new thresholds take effect may still qualify, subject to guidelines issued by the Commissioner for Tax and Customs.
Fees and renewal
- Application fee: €8,500 (reduced to €5,500 for property in the south).
- Status is granted for five years; each renewal costs €2,500.
Transitional provisions
- Any applicant whose status is granted by 31 December 2026 retains that status until 31 December 2031.
- The same five‑year protection also applies to applications received by that date, regardless of when the decision is issued.
No explicit rule has been published for the period after 2031; advisory firms expect renewal under the new framework.
Ongoing obligations and penalties
- Residence: the qualifying property must not be let or sublet, and the applicant must not spend more than 183 days in any other jurisdiction in a calendar year.
- Domicile: applicants must not be domiciled in Malta and must intend not to become domiciled within five years of application.
- Medical insurance: loss of private medical cover terminates the status.
- Reporting: changes in dependents must be reported within four weeks (penalty €5,000).
- Mandatary responsibility: all filings must be handled by a registered mandatary (advocate, legal procurator, notary or accountant). Missed annual residence checks incur a €10,000 penalty; repeated failures lead to loss of registration.
Comparative cost
- Malta’s €35,000 floor remains below the six‑figure minimums imposed by Italy and Greece under their flat‑tax regimes for new residents.
- The programme is positioned for internationally mobile investors or business owners whose income is primarily foreign‑sourced.
Wider context
The changes are part of a broader trend of tightening residency‑by‑investment schemes in Europe. Observers note that programs in jurisdictions such as Cyprus may face similar increases in thresholds and fees in the near future.
Source article: www.imidaily.com
