The Residence Programme

Special Tax rates

An individual who has been granted this special tax status will be subject to tax at a flat rate of 15% on any income that is received in Malta from foreign sources by him or his dependents.

Conditions to satisfy

• The individual is a national of the EU, Iceland, Norway,Liechtenstein or Switzerland, but not a permanent resident of Malta or a Maltese national;
• The individual is not a beneficiary in terms of any of other special tax programme;
• The individual owns or rents an immovable property which the individual occupies as his principal place of residence worldwide. The values of the property need to be as follows:

1. If owned: Malta € 275,000; Gozo: € 220,000;
2. If rented: Malta € 9,600 p.a. Gozo: € 8,750 p.a..

• He is in receipt of (a) stable and regular resources (source of income) which are (is) sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;
• Is in possession of a valid travel document as well as sickness insurance which covers himself and his dependents;
• He can adequately communicate in one of the official languages of Malta, either Maltese or English; and 
• He is a fit and proper person.

Minimum Tax requirements

Beneficiaries of these special tax rates will need to pay a minimum tax of €15,000 annually.

Tax Implications 

Foreign sourced income which is remitted to Malta will be taxed at a flat rate of 15%. Any other income, that is chargeable to tax in Malta, will be subject to tax at the rate of 35%.

Annual Compliance

• Filing an annual income tax return;
• Making an annual declaration that the individual has not resided in a jurisdiction other than Malta for a period exceeding 183 days;
• Pay the minimum tax by the end of April of the year immediately preceding the year of assessment, and the balance by the tax return date.

Want to know more? Contact us and we will be able to assist you!