The Residence Programme

• Income arising outside Malta which is received in Malta would be chargeable to tax in Malta at the flat rate of 15%;
• Income arising in Malta and capital gains realised in Malta would be taxable in Malta at the higher rate of 35%;
• The applicant may not reside in any one other jurisdiction for more than 183 days in any calendar year;
• No tax on income and capital gains outside Malta;
• The applicant and his/her spouse can include financially dependent parents and unmarried children under 25 years old;
• The right to reside in Malta without any restriction and no obligations to reside any minimum number of days;
• An application fee of €6,000 applies and must be paid upon application.

To be eligible for the TRP, applicants are required to satisfy the following criteria:

Property Requirement:
Applicants must either acquire or lease a residential property in Malta. The property must meet the established minimum thresholds, currently set at €275,000 for properties located in Malta and €220,000 for those in Gozo or the southern region of Malta. In the case of rental agreements, the minimum annual rent must be €9,600 in Malta and €8,750 in Gozo or the south of Malta.

Income Requirement:
Applicants are expected to demonstrate that they have a stable and consistent source of income that is sufficient to support themselves as well as any dependents.

Health Insurance:
Applicants must possess valid health insurance that provides coverage in Malta and across the European Union.

Due Diligence:
A thorough due diligence procedure is carried out for all applicants, including comprehensive background checks, to confirm compliance with the programme’s standards.

Authorized Registered Mandatory (ARM):
All applications must be submitted through an Authorized Registered Mandatory (ARM) recognised and approved by the Maltese authorities.

Individuals benefiting from the TRP are entitled to a number of notable tax advantages:

• Income generated outside Malta and remitted to Malta is subject to tax at a flat rate of 15%.
• Income earned within Malta, as well as capital gains realised in Malta, is taxed at the standard rate of 35%.
• A minimum annual tax liability of €15,000 applies, which covers the first €100,000 of income remitted to Malta.
• Foreign income and capital gains that are not remitted to Malta are not subject to Maltese tax.

Additional TRP Benefits

The TRP provides a range of appealing advantages for successful applicants:

Dependents:
Applicants may extend the benefits of the programme to their spouse, unmarried children under the age of 25, as well as financially dependent parents and grandparents.

Residency Rights:
Once a residence card is issued, both the main applicant and their dependents are permitted to live in Malta without any residency restrictions.

Schengen Area Travel:
Beneficiaries are able to travel visa-free across the Schengen Area, facilitating ease of movement within participating countries.

No Minimum Stay Requirement:
The programme does not impose any minimum physical presence requirement, meaning beneficiaries are not obligated to spend a specific number of days in Malta each year.

The application process is designed to be clear and efficient, although careful preparation is essential:

Engagement of an ARM:
Applicants must appoint an Authorized Registered Mandatory (ARM) to manage and submit the application on their behalf.

Submission of Documentation:
All required supporting documents must be provided, including evidence of property purchase or rental, proof of income, valid health insurance, and any additional documentation requested.

Application Fee:
A non-refundable application fee is payable, amounting to €6,000, or €5,500 if the qualifying property is located in Gozo or the south of Malta.

Due Diligence Process:
Applicants are subject to a due diligence procedure, which includes background checks and any further necessary verifications.

Approval and Residency Card:
Once the application is approved, applicants may proceed with obtaining their residence card.

Beneficiaries are required to adhere to a number of ongoing conditions in order to retain their status under the programme:

Tax Compliance:
Beneficiaries must ensure the timely settlement of the minimum annual tax and remain fully compliant with all applicable Maltese tax regulations.

Residence Limitation:
Individuals may not reside in any single other jurisdiction for more than 183 days within a calendar year.

Property Requirement:
Beneficiaries are expected to retain ownership or continue renting a qualifying property in line with the programme’s criteria.

By fulfilling these obligations, applicants can position themselves to benefit from a high standard of living in one of Europe’s most attractive and sought-after destinations.