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Malta - Global Residence Programme (GRP)
The Global Residence Programme (GRP) is a residency scheme in Malta that is open to non-EU nationals who wish to reside in Malta and enjoy favourable tax benefits. The programme was designed to attract high net worth individuals, retirees, and international entrepreneurs to Malta.
To be eligible for the Global Residence Programme, applicants must meet the following criteria:
- Non-EU national: Applicants must be non-EU nationals who are not already in possession of a Maltese residency permit.
- Financial resources: Applicants must have sufficient financial resources to support themselves and their dependents without recourse to the Maltese social assistance system.
- Property rental or purchase: Applicants must either rent or purchase a qualifying property in Malta. Applicants must either purchase a property in Malta for at least €275,000 (€220,000 in Gozo) or rent a property in Malta for at least €9,600 per year (€8,750 per year if the property is located in Gozo or the south of Malta).
- Health insurance: Applicants must have valid health insurance coverage in Malta.
- Clean criminal record: Applicants and their dependents must provide a clean police conduct certificate from their country of origin or residence.
Some of the tax benefits of the GRP include:
- Flat tax rate: GRP participants are subject to a flat tax rate of 15% on their foreign source income remitted to Malta, with a minimum tax liability of €15,000 per year. This means that they can benefit from a significantly lower tax rate than the standard personal income tax rates in Malta.
- No tax on foreign capital gains: GRP participants are not subject to tax on any foreign capital gains, except for those arising from the sale of immovable property situated in Malta.
- No inheritance tax: Malta does not impose inheritance or gift tax, which means that GRP participants can pass on their wealth to their heirs without incurring any tax liability.
- No wealth tax: Malta does not impose any wealth tax on assets held outside of Malta.
- Double tax treaties: Malta has an extensive network of double taxation treaties, which can help GRP participants to reduce their tax liability on foreign income.
These tax benefits, coupled with Malta’s attractive lifestyle, pleasant climate, and strategic location, make the GRP an appealing option for high-net-worth individuals looking to relocate to a tax-friendly jurisdiction. However, it’s important to note that the GRP is subject to certain conditions and requirements, and participants should seek professional advice to ensure that they comply with the relevant rules and regulations.
