The main residence programmes available for non-EU/EEA nationals in Malta are the Global Residence Programme (GRP) and the Malta Permanent Residence Programme (MPRP). The GRP is mainly a programme granting a special tax status which allows its beneficiary the right to apply for a residence card in Malta. The MPRP on the other hand is a permanent residence programme which provides the ability for affluent persons to apply for Maltese permanent residency on the basis of a contribution and an investment in property.
Residence status obtained under the MPRP is valid for life, if all the programme obligations are adhered to, whilst the residence states obtained under the GRP is renewed annually subject to paying a minimum annual tax of €15,000. The MPRP does not give any special tax status and there is no requirement to pay a minimum annual tax in Malta.
Malta Permanent Residence Programme
The Malta Permanent Residence Programme (MPRP) launched in March 2021, by means of Legal Notice 121 of 2021 is a permanent residence by investment programme for non-EU/EEA nationals granting a PR status within a period of 4-6 months from the date of submission of an application.
Once approved, holders of PR status obtain the right to settle, stay and reside permanently in Malta and the right to travel within the Schengen Area without a visa for 90 days out of 180 days.
Under this programme, applicants are required to provide evidence that they hold at least €500,000 in capital, out of which €150,000 should be in the form of financial assets.
There are three main requirements to apply under this programme:
1. Property Purchase or Rental
Applicants are required to make an investment in property of at least €350,000 (Malta) or €300,000 (Gozo / South of Malta) or enter a property rental contract for at least €12,000 (Malta) or €10,000 (Gozo / South of Malta) annually. These are to be held for a minimum of five years, after which a residential address is required.
2. Contribution to the Government of Malta
The main applicant is also required to pay a contribution to the Maltese Government of €98,000 when opting to rent a property or €68,000 when opting to purchase a property. This is to be paid in two stages: €10,000 on submission of the application stage and the remaining fees on approval of the application. An additional €7,500 application fee is to be paid per each parent/grandparent, of the main applicant or the spouse, included in the application.
3. Philanthropic Contribution
The main applicant is also required to donate at least €2,000 to a local registered philanthropic, cultural sport, scientific, animal welfare or artistic NGO registered with the Commissioner for Voluntary Organisations or as otherwise approved by the Residency Malta Agency.
The Malta Global Residence Programme (GRP)
The Malta Global Residence Programme (GRP) launched by means of Legal Notice 167 of 2013 as amended throughout the years, is a tax residence programme conferring a special tax status. The special tax status gives the applicant the benefit of having one’s foreign sourced remitted income taxed at a flat rate of 15%. Once the special tax status is issued, the applicant can apply for a Maltese residence card granting the right to reside in Malta, and to travel within the Schengen Area without a visa.
There are three main requirements to apply under this programme:
1. Pay a one-time government application fee of €6,000
A non-refundable administrative fee needs to be paid in respect of any application for special tax status in terms of the Global Residence Programme. The administrative fee is that of six thousand euro (€6,000) except where the qualifying owned property is situated in the south of Malta, in which case the administrative fee is that of five thousand five hundred euro (€5,500).
2. Property Purchase or Rental
Applicants are required to make an investment in property of at least €275,000 (Malta) or €220,000 (Gozo / South of Malta) or enter a property rental contract for at least €9,600 (Malta) or €8,750 (Gozo / South of Malta) annually. These are to be held for as long as the applicants wants the residence status in Malta.
3. Minimum Annual tax
Beneficiaries of the special tax status granted in terms of the Global Residence Programme are required to pay a minimum tax of fifteen thousand euro (€15,000) annually.
The main difference between the GRP and MRVP programmes is therefore that the GRP does not offer permanent residence rights but a special tax status leading to residency whilst the MPRP offers permanent residence in Malta.
