The Publication Of The Global Residence Program Rules, 2013

The Global Residence Programme is aimed at people who buy high value property and encourages foreign nationals to take up residence in Malta.

By means of Legal Notice 167 of 2013, the Global Residence Program Rules 2013 have been published. Contrariwise as what has been expected, these Rules are only applicable to non-Maltese, non-EEA and non-Swiss nationals – therefore only to third country nationals.

The Global Residence Program Rules may be summarised as follows:

Malta Gozo and South of Malta
Purchase of Immovable Property Of at least €275,000 Of at least €220,000
Rental of Property Of at least €9,600 Of at least €8,750
Minimum Tax Payable €15,000 €15,000
Non-Refundable Application Fee €6,000 €5,500 when the qualifying property is in the South of Malta.

In terms of these Rules, the localities in the south of Malta are the following, Birżebbuġia, Cospicua, Fgura, Għaxaq, Gudja, Kalkara, Kirkop, Luqa, Marsascala, Marsaxlokk, Mqabba, Paola, Qrendi, Safi, Santa Luċija, Senglea, Siġġiewi, Tarxien, Vittoriosa, Xgħajra, Żabbar, Żejtun and Żurrieq.

The Global Residence Program Rules establishes a flat 15% tax rate on income arising outside of Malta and brought into Malta. The minimum tax payable is €15,000 which must be paid fully and yearly in advance. No tax will be charged on income realised outside of Malta and not remitted into Malta, and not remitted into Malta, and no tax will be charged on capital gains. Any income which arises in Malta will be taxed at the rate of 35%.

In order to avail from the Rules the beneficiary must:

  1. Not be a Maltese/ EEA/ Swiss national;
  2. Not benefit from any other special tax status;
  3. Hold a qualifying property;
  4. Be in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta;
  5. Be in possession of a valid travel document;
  6. Be in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals, for himself and his dependents;
  7. Be fluent in one of the official languages of Malta; and
  8. Be a fit and proper person.

In terms of the GRP Rules the special tax status may now be inherited.

Applications for the GRP Rules may be applied for only through an Authorised Registered Mandatory. We will be able to assist you in this regard.

For further information, kindly Contact Us