COUNTRY:
Malta - The Residency Program (TRP)
This program is suitable for EU and EEA nationals who would like to obtain a residence permit in Malta. The conditions and benefits enjoyed by the TRP reflect the same conditions and the GRP (For non-EU) as detailed in the same section. The TRP provides individuals with a certificate of tax residency in Malta, which can be used to prove their tax residency status to other countries and tax authorities.
Eligibility and Requirements
- Eligibility: Clean criminal record, Health Insurance, Fit and proper and be able to support themselves without relying on public funds.
- Application process: To apply for the TRP, individuals must submit the required documents and application forms to the Maltese authorities. The process typically takes around 3-4 months.
- Property: 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).
- Residence requirements: Must not reside in any other single jurisdiction for a period exceeding 183 days.
- An annual tax return is also required to be submitted. This annual declaration indicates any material changes that affect the beneficiary’s special tax status.
Key Benefits
- Taxation: Participants in the TRP may be eligible for a flat tax rate of 15% on their foreign source income that is remitted to Malta and may be eligible for a tax exemption on capital gains arising from the sale of qualifying assets, subject to a minimum flat rate of tax of €15,000.
- Access to healthcare: Participants in the TRP are entitled to access to the Maltese healthcare system, subject to certain conditions.
- Right to work: Participants in the TRP are entitled to work in Malta, subject to obtaining the necessary work permits.
The TRP is not a permanent residency or citizenship programme, and participants are not entitled to reside permanently in Malta or to obtain Maltese citizenship or an EU passport. In the event the beneficiary who was granted special tax status in view of The Malta Residence Scheme were to become a permanent resident, the applicant can no longer benefit from the tax treatment and will be taxable on a worldwide basis.
Difference between the TRP and the Ordinary residence.
Under the ordinary residency, the applicant is taxed on income sourced in Malta and/or remitted into Malta. The applicant would not be taxed on any foreign capital even if remitted or received in Malta. The total taxable income would be taxed at the progressive tax rates in Malta up to a maximum of 35% and subject to an annual minimum tax of €5k per year should the applicants worldwide annual income be greater than €35,000.
It’s important to note that the regime is subject to certain conditions and requirements, and individuals should seek professional advice to ensure that they comply with the relevant rules and regulations.
