The Malta Global Residence Programme (GRP) is designed to attract individuals from outside the EU, EEA, or Switzerland who are looking for a tax residency within the European Union. This popular programme, introduced by the Maltese Government is 2013, is designed to attract wealthy Third Country National individuals.
The main benefits of the Malta Global Residence Programme are mainly that once approved by the Office of the Commissioner for Revenue, the holder will receive a special tax status certificate that will entitle the applicant and his/her dependants to apply for a residence permit in Malta. This permit does not allow one to reside in Malta but also to travel within the Schengen Area without the new requirement to apply for a Schengen visa every time.
The special tax status allows that any foreign sourced income remitted by the applicant to Malta will be taxed at a special fixed tax rate of 15%, with the possibility of claiming double tax relief. And all other foreign sourced income which is not remitted to Malta will not be taxed locally. However, any income generated in Malta will be taxable at the rate of 35%.
Eligibility to apply for this special tax status under the Global Residence Programme in Malta are:
- Being a third-country national
- Not benefitting from any other resident scheme
- Renting or purchasing a property in Malta
- Having a health insurance
- Being considered a fit and proper person
- Being fluent in English or Maltese
Upon application, one must pay a non-refundable one-time fee of €6,000.
It's important to note that the main applicant must pay a minimum annual tax of €15,000 and must not reside in any other jurisdiction for at least 183 days in a calendar year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.