The Residence Programme – Malta 

Eligibility Requirements For The Malta Residence Programme?

All applications for The Malta Residence Program are submitted to the International Tax Unit of the Commissioner for Revenue of Malta. The applicant and his family must be represented by an Authorised Registered Mandatory (ARM) like CSB Group who will advise and process the application and assist the client all the way through.

In terms of the qualifying nationality, applicants have to be EU, EEA and Swiss nationals. For example, nationals from outside of the EU cannot apply for The Residence Programme and will be applying for the “Global Residence Programme” rules instead.

A key requirement is holding qualifying property in Malta with the following characteristics:

• Purchase of property for a minimum of €220,000 if located in Gozo or South of Malta or €275,000 if in Malta
• Rental of property for a minimum of €8,750 if located in Gozo or South of Malta or €9,600 if in Malta

When the application is submitted, applicants will need to pay an Application fee of €5,500 if the property is in Gozo or the South of Malta or €6,000 is situated in Malta.

Also, all applicants will need to pass a "due diligence" test, have health insurance, and submit all the relevant documentation and forms.

Who can be included in the Malta Residence Programme Application?

Residence in Malta and its tax benefit can be extended to the dependents of the applicant. The dependants that can be included in the application are as follows:

How long until the Special Tax Status under The Residence Programme is Approved?

After all due diligence checks are completed, the Commissioner will request further information if in doubt and otherwise will issue the approval of the file. A short interview with the Commissioner will then be carried out and the Special Tax Status under The Residence Programme Rules will be granted.

Normally, the entire process would take 3-4 months, but this may take longer depending on each file's and client’s particularities.

What are the obligations applicants are made to follow?

After officially being approved to The Residence Programme (TRP) in Malta, beneficiaries will be required to pay a minimum tax of fifteen thousand Euros (€15,000) per annum as previously mentioned. This minimum tax will cover income of both the beneficiary and their dependents that arises outside Malta and is received in Malta, therefore excluding income that arises in Malta.

In the year when the special tax status is confirmed or cancelled, the minimum tax will be paid in full.

In the year of application, the minimum tax for the first year shall be paid at the Commissioner for Revenue based in Floriana before the special tax status is confirmed. A receipt will need to be presented to the International & Corporate Tax Unit, following which a letter of confirmation will be issued.

In the event the beneficiary who was granted special tax status in view of The Malta Residence Scheme were to become a permanent resident, he/she may not/no longer benefit from the tax treatment and will be taxable on a worldwide basis.

Furthermore, the beneficiary must notify the Commissioner of any changes in circumstances that have an effect on the minimum tax payable - such as a change in the number of dependants or household staff - within 4 weeks from when said beneficiary became aware of them. This procedure is to be done through the beneficiary’s ARM who will also be held to inform the Commissioner of any change in circumstance affecting the minimum tax payable, even if such information were not disclosed directly by the beneficiary.

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.

In addition, should the Commissioner require additional information and documents including certifications and declarations within a certain time frame, the beneficiary must adhere to the request in a timely manner.

• The spouse of the main applicant, or his/her de facto partner;
• Children including adopted minor children, and children in the care and custody of the main applicant which are under 18 years old;
• Children including adopted who are not minors but are unable to maintain themselves due to circumstances of illness or disability of a serious gravity;
• Children between 18 and 25 years old, including adopted children, provided that such children are not economically active;
• children including adopted who are not minors but who because of circumstances of illness or
• disability of a serious gravity, are unable to maintain themselves;
• Dependent brothers, sisters and direct relatives in the ascending line of the main applicant or his/her spouse or the person with whom the beneficiary is in a stable and durable relationship with.

It is essential to note that a minimum tax of €15,000 is payable yearly. Applicants cannot reside in any other jurisdiction for more than 183 days per year.

In the year when the special tax status is confirmed or cancelled, the minimum tax will be paid in full.

Documentation Required

Typically, The Residence Program application will require the applicants to produce additional type of documentation like birth and marriage certificates, police criminal records, passport copies, bank reference letters, etc. As normally we are submitting copies, those must be legalised and counter-legalised (or Apostilled) and, if they are not in English, they need to be translated.

Our advisory team will provide you with a checklist of documents and will give you advice and support until your application is approved by the Commissioner for Revenue.

What are the benefits of The Malta Residence Programme?

Freedom of movement within the Schengen Area

Malta is one of the 26 countries part of the Schengen Area. This means that once you attain residence within Malta, you can move freely between Schengen regions, avoiding time-consuming visa applications and border patrols.

Special Tax Status

When the application has been approved, and the residence requirement has been satisfied, applicants will benefit from a special and favourable tax status and treatment:

• 15% flat tax rate for all income remitted to Malta;
• No tax for income generated outside Malta but not received in Malta;
• No Malta tax on capital gains even if received in Malta, but realised outside;
• Also, applicants will be entitled to double taxation relief otherwise suffered on income arising outside Malta.

Residence in Malta can offer attractive tax rates not only to the direct applicants but also to their families: they are in fact automatically covered as long as they are direct dependents of the applicant.

What is the difference between the Malta Residence Programme and the Malta Ordinary Residence?

The main aim of The Residence Programme (TRP) is to offer the opportunity to take up residence in Malta and benefit from a favourable tax status, as follows:

1. A flat tax rate of 15% for income arising outside of Malta but received in Malta;
2. No Malta tax on income arising outside Malta but not received in Malta; and
3. No Malta tax on capital gains realized outside Malta even if received in Malta.

Some fine line – a minimum tax of €15,000 is payable yearly, and applicants cannot reside in any other jurisdiction for more than 183 days per year.

Under Ordinary Residence the applicant would be taxable in Malta on;

1. Income sourced in Malta and
2. Foreign income remitted to 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.

CSB Group – Your Trusted Advisor

With over 35 years of experience in Malta's corporate and financial services industry, CSB Group is committed to providing top-notch services to Private Clients worldwide. CSB Group has been providing Investment immigration services to High-Net-Worth families since the inception of these programmes.

As an Authorised Registered Mandatory (ARM), the CSB Group Advisory Team will be happy to assist you and provide you with a quote for The Residence Programme that can satisfy you and your family's needs.

Our team at CSB Group will guide you through the process of becoming a resident in Malta through The Residence Programme, whilst the Consultants from Sotheby's International Realty will be able to find you the right property to fulfil both the investment criteria and your needs.

Unique Culture and Lifestyle

Malta is world-renowned for its unique culture. French, British, Arabian, and even Italian customs and traditions are still experienced to this day alongside the native Maltese.

The country also boasts some of the most stunning scuba diving spots, ranking second around the globe, and is also home to three World UNESCO Heritage Sites.

With 300 days of sunshine a year, the temperate weather is one of the most enjoyable in the Mediterranean.

Public and Private Health in Malta are ranked 5th in the world by the World Health Organisation.