Taxation | The Residence Programme

In mid 2014, the Maltese Government launched two new programmes to replace the High Net Worth Individual Rules. The first programme launched was the Global Residence Programme rules which replaced the HNWI programme for non EU, EEA or Swiss Nationals. The second programme launched was The Residence Programme Rules which replaced the HNWI rules for EU, EEA or Swiss nationals. Bought these programmes lowered the minimum tax payable and property purchase/lease price thresholds of the HNWI rules.

The Residence Programme (TRP), which is deemed to have come into force as from the 1st July 2013, is designed to attract individuals who are nationals of the EU, EEA or Switzerland and who are not permanent residents of Malta.  Beneficiaries may also have household staff providing a service in their qualifying property, as long as all the requisite procedures are satisfied.

Individuals benefitting from this programme are not precluded from working in Malta, provided they satisfy the necessary conditions to obtain a work permit.

Successful applicants under the The Residence Programme (TRP) benefit from a beneficial tax rate of 15% on all foreign income received in Malta, upon the satisfaction of a number of conditions.

The TRP rules outline the conditions necessary to benefit from this special tax status, being :

  • Must be an EU national (excluding a Maltese national), a national of Iceland, Norway or Liechtenstein or a national of Switzerland.
  • Must not benefit from any of the following taxation programmes being : Residents Scheme Regulations, High Net Worth Individual Rules, Malta Retirement Programme Rules, Global Residence Programme Rules, Qualifying Employment in Innovation and Creativity Rules or Highly Qualified Persons Rules.
  • Must own or rent a property in Malta as follows :
South of Malta
Min. value of Purchased Property€275,000€220,000€220,000
Min. rental value per annum€9,600€8,750€8,750
Tax Rate15%15%15%
Stay Requirement90 days90 days90 days
Application Fee€6,000€6,000€5,500
  • Must receive stable regular income that is sufficient to support himself/herself and his/her dependants without recourse to the social assistance system in Malta.
  • Must pay a minimum tax of €15,000 annually.
  • Must possess a valid travel document.
  • Must possess an EU wide health insurance cover for himself and his dependants.
  • Is a fit and proper person and must submit a recent police conduct certificate.
  • Must be fluent in Maltese or English.

All applications must be submitted by an Authorised Registered Mandatary and in fact, we are registered as an Authorised Registered Mandatary with the Inland Revenue in Malta, and we can tehefore assist you in your application process.