The Global Residence Programme (“GRP”) is a distinctive tax programme aimed at Non-EU, non-EEA and non-Swiss nationals and offers an advantageous tax rate and relatively low investment requirements. Additionally, individuals who meet the criteria for the GRP are entitled to live and travel within all Schengen States without the requirement of a visa. Individuals who meet the criteria for the GRP are entitled to live and travel within all Schengen States without the requirement of a Visa.
In addition to the above tax arrangements, applicants of the GRP are also required to invest in property in either Malta or Gozo in the form of a purchase or lease.
Purchase | Applicants may either purchase:
• A property with a minimum purchase price of €275,000 in certain localities in Malta; or
• A property with a minimum purchase price of €220,000 in Gozo or localities within the south of Malta.
Lease | Alternatively, applicants of the GRP may either:
• lease a property in certain localities in Malta for a minimum yearly lease of €9,600; or
• lease a property in Gozo or the south of Malta for a minimum yearly lease of €8,750
The GRP has widened the definition of dependants and now also includes brothers and sisters of the applicant, together with direct relatives in the ascending line, provided that the Director of Inland Revenue is satisfied that these are dependants of the applicant. Spouses and children under the age of 25 are automatically eligible for inclusion. Furthermore, employees, such as carers, can also be included as a dependant under the GRP.
To qualify for the GRP, an applicant must:
• Not be a Maltese, EEA or a Swiss national;
• Not be a person who benefits from similar schemes in Malta;
• Receive a stable and regular income, sufficient to maintain themselves and their dependants without the need to rely on social benefits in Malta;
• Be in possession of a valid travel document;
• Be in possession of health insurance covering material health risks across the territory of the EU
• Be able to communicate in either English or Maltese;
• Be ‘fit and proper’ person.
Persons who are either not ordinarily resident or domiciled in Malta are liable to pay tax on any income and capital gains arising in Malta and on any foreign source income, but excluding capital gains, arising abroad and remitted to Malta. Once successfully registered for the GRP, a flat tax rate of 15% is charged on all income received in Malta from foreign sources by the applicant and his dependents.
Furthermore, Malta has successfully negotiated double tax treaty agreements with over 60 countries including most European Member States, Canada, USA, Australia and Russia. Persons who apply for the GRP can therefore receive their pensions in Malta free of tax at source and subject to 15%. The same applies to any person who holds a capital investment overseas as the double tax treaty agreements ensure that tax is never paid twice in different countries.
Other income that is taxable in Malta will attract tax at the rate of 35%. This may include bank interest received from a local source or dividends received from a company registered in Malta. The programme also sets a minimum of €15,000 tax which must be paid per year.
A non-refundable administrative fee of €5,500 - €6,000 is charged upon application, which goes towards covering fees charged by a subcontracted international firm to run an international ‘fit and proper’ background check. Applications must be submitted by Maltese warrant holders registered with the Inland Revenue department as authorised mandatories