Malta’s Global Residence Program (GRP) Tax Program

A destination that is attracting many foreign investors within Europe is the Mediterranean island of  Malta. Although not entirely tax free, investors and residents can make use of Malta’s Global Residence Program (GRP) to reduce their tax liability.

What is Malta’s Global Residence Program (GRP)? 

The Global Residence Program (GRP) Taxpayers Program is a tax regime in Malta is a tax incentive program designed to attract non-Maltese nationals to establish residency in Malta and benefit from a special tax program that offers significant tax advantages on foreign earned income. 

Who can apply to the Maltese Global Residence Program (GRP)? 

The Maltese Global Residence Program (GRP) is open to all foreign nationals who have not been a tax resident in Malta for five out of the previous six years. Non-Maltese nationals over the age of 18 who have sufficient financial means to support themselves and their dependents in Malta and who meet the other eligibility requirements can apply for Malta’s Global Residence Program (GRP).

Can Residents who have applied for the Maltese Permanent Residence Programme (MPRP) apply to the Global Residence Program (GRP)? 

Yes, residents of the Maltese Permanent Residence Program (MPRP) are eligible to apply for Malta’s Global Residence Program (GRP) provided they meet the eligibility requirements. However, if someone uses Malta’s Exceptional Investor Naturalisation program and becomes a Maltese citizen they will not be eligible. 

What are the benefits of the Maltese Global Residence Program (GRP)? 

The benefits of Malta’s Global Residence Program (GRP) include a special tax regime that allows non-Maltese residents to pay tax on their foreign income at a fixed rate of 15% on income remitted to Malta, with a minimum tax liability of €15,000 per annum. In addition, income derived from non-Maltese sources and not remitted to Malta is not taxed in Malta. GRP beneficiaries may also invest in Maltese securities or property.

The tax rate of 15% only applies to foreign source income that is remitted to Malta. In other words, any foreign source income that is not remitted to Malta is not subject to Maltese tax.

The following foreign source income may be eligible for the special tax rate under the GRP:

• Income derived from work or services performed outside Malta;
• Income derived from investments or assets located outside Malta;
• Capital gains derived from the transfer of assets located outside Malta; and
• Royalties, patents, copyrights, and trademarks derived from intellectual property located outside Malta.

What is the process for applying to Malta’s Global Residence Program (GRP)? 

The process for applying to Malta’s Global Residence Program (GRP) involves becoming a resident first and foremost. Then the individual needs to submit an application to the Malta Residence and Visa Agency (MRVA). 

To meet the eligibility requirements they must  pass the “fit and proper” test, provide evidence of financial means and health insurance, invest in Maltese securities or property, and fulfil other requirements such as purchasing or renting a qualifying property in Malta.

The MRVA will review the applicant’s background and history, including their criminal record, financial history, and business experience to pass the “fit and proper” test.

The property you purchase or rent must meet certain criteria, including a minimum value of €275,000 for properties located in Malta or €220,000 for properties located in Gozo or the South of Malta. The property must also be used as your principal residence in Malta and cannot be rented out.

The application must have all the necessary documents, including a copy of your passport, proof of income, accommodation and proof of health insurance. You will also need to pay a non-refundable application fee of €6,000.

Can a person apply to Malta’s Global Residence Program (GRP) before gaining a residence permit? 

No, it is not possible to obtain Global Residence Program (GRP) status in Malta before becoming a resident in the country. The GRP is designed for non-Maltese citizens who are interested in establishing their residence in Malta and contributing to the country’s economy.

How can I learn more about Malta’s Global Residence Program (GRP)?

To obtain comprehensive information about the Global Residence Program (GRP) in multiple European countries, you can contact the skilled team at MOVEANYWHERE and book a consultation. The team is adept at helping all clients with the GRP tax program process and will provide an overview of the fundamentals.

During the consultation, the MOVEANYWHERE team will evaluate your individual circumstances, including your current tax liabilities, sources of income, assets, potential tax obligations, family composition, and prospective tax advantages, to determine the optimal solution for you. To take the first step towards a more informed decision, contact us today.