The Global Residence Programme (GRP)

The Global Residence Programme (GRP), implemented in 2013 enables an applicant and his/her dependents to benefit from a special tax status in Malta. Qualifying applicants would then be chargeable to tax in Malta at the flat rate of 15% subject to satisfying certain conditions, which include:-

1. applicant is not a citizen of Malta or of any EU, EEA or Swiss national;
2. applicant is not a beneficiary under any residence Malta scheme or other scheme;
3. is in possession of a “Qualifying Property Holding” which would entail either owning a property in Malta of not less than €275,000 or of not less than €220,000 if the property is situated in Gozo or in the south of Malta or renting a property in Malta for not less than €9,600 or for not less than €8,750 if the property is situated in Gozo or in the south of Malta;
4. is in receipt of stable and regular resources that are sufficient to maintain the permit holder and his/her dependents without resourcing to social assistance in Malta;
5. a minimum tax liability of €15,000 must be paid per annum;
6. be in possession of a valid travel document;
7. be in possession of health insurance which covers all the applicant and his/her dependents for all risks across the EU as are normally covered by Malta nationals;
8. be fluent in English and/or Maltese;
9. does not spend more than 183 days in another jurisdiction;
10. be a fit and proper person.

Successful applicants will acquire a permit under the Global Residence Programme issued by the Malta Commissioner of Inland Revenue. Such applicants would then be entitled to be subject to the following Malta tax treatment:

1. income arising outside Malta in the year immediately preceding the year of assessment which is received in or remitted to Malta would be chargeable to tax in Malta at the flat rate of 15%;  
2. income arising outside Malta which is received in or remitted to Malta during the whole year in which the special tax status was granted, would be chargeable to tax in Malta at the flat rate of 15%;
3. other income not covered under the Global Residence Programme is charged at the rate 35%.

It is to be noted that successful applicants benefitting from the GRP are not precluded from working in Malta, provided they satisfy the requisite conditions for obtaining a work permit. Beneficiaries may also have household staff providing a service in their qualifying property, as long as all the requisite procedures are satisfied.

Applicants may also seek a Tax Residence Certificate issued by the Malta Inland Revenue Department if they satisfy the Revenue’s criteria to qualify as a tax resident in terms of Maltese domestic law.