15% tax rate
On qualifying foreign income received in Malta
Five-year status
Renewable for further five-year periods
Malta’s Individual Tax Programme provides a consolidated framework for international residents seeking special tax status from 1 January 2027. Qualifying foreign income received in Malta may be taxed at 15%, subject to the minimum annual tax applicable to the beneficiary’s category. The programme accommodates third-country nationals, EU, EEA and Swiss nationals, retirees and UN pensioners. Applicants must maintain qualifying residential property, private medical insurance, sufficient resources and continuing compliance. The programme should be assessed alongside immigration residence, Malta tax residence, domicile, pension treatment and the client’s wider cross-border tax position.
The Malta Residence Programme builds on the success of Malta’s reputation in attracting expatriates and families seeking an alternative residence base in a warm Mediterranean Island in the European Union. The Programme is open to EU nationals and it offers Schengen residence coupled with favourable taxation rates. To be eligible for the Malta Residence Programme, one must buy/rent residence in Malta, be economically self-sufficient and pay a minimum annual tax of €15,000 for a whole family.
Maltese residents are not subject to tax in Malta on foreign sourced income not remitted to Malta. Nor are they subject to tax on any foreign-sourced capital gains whether remitted to Malta or not. Permanent Residents of Malta are entitled to taxation at the flat rate of 15% on remitted income. Under the Global Residence Programme Rules law, non domiciled residents of Malta enjoy special tax status, a flat rate of 15% on foreign source income.
- Capital City: Valletta – A UNESCO World Heritage Site and one of Europe’s most charming capitals, known for its rich history, stunning architecture, and vibrant cultural life.
- Languages: Maltese and English are both official languages, making communication easy for international residents. Italian is also widely understood.
- Time Zone: Central European Time (UTC+1) - Enjoy long sunny days and a Mediterranean lifestyle, with daylight saving time (UTC+2) in summer.
- Currency: Euro (€) – Seamless integration with the European economy and easy banking across the EU.
- Total Area: 316 km² – Compact and easy to explore, with everything from beaches to historic towns within reach.
- Population: Approx. 574,000 – A close-knit, welcoming community with a cosmopolitan vibe thanks to a growing expat population.
- Nearest Country: Italy – Just 80 km away from Sicily, perfect for weekend getaways and cultural crossover.
- Schengen Status: Full Member
Benefits of the Malta Global Residence Programme
- Indefinite Residence: the right to reside indefinitely in Malta.
- Maltese Residence Card provides Visa-free travel within Schengen Area.
- Include family members and domestic staff in one application.
- No minimum presence required.
- No tax on foreign-source income if not remitted to Malta.
- No tax on foreign-source capital gains, even if remitted to Malta.
- Special Tax Status : 15% Tax only on Malta-source income and capital gains and on foreign income only if remitted to Malta.
- No inheritance tax.
- No wealth taxation
Benefits
Qualifying income arising outside Malta and received in Malta may be taxed at 15%, with the possibility of claiming double taxation relief under the Income Tax Act.
The Rules provide that:
the rate of fifteen cents (0.15) for every euro shall apply to any income arising outside Malta
The 15% rate is not a blanket rate on all income. Income outside the preferential treatment is generally taxed separately at 35%.
The programme provides separate categories for:
- global residents;
- EU, EEA and Swiss residents;
- retired pensioners; and
- UN pensioners.
Each category has distinct nationality, residence, pension and minimum-tax requirements.
A qualifying United Nations pension or widow’s or widower’s benefit received in Malta following the grant of UN pensioner status is exempt from Maltese income tax.
Other qualifying foreign income received in Malta may be taxed at 15%, subject to the applicable €20,000 minimum annual tax.
Special tax status is granted for an initial five-year term and may be renewed for further five-year periods.
Renewal requires continued eligibility, supporting documents and payment of a €2,500 non-refundable renewal fee.
Specified dependants may be included within the programme.
Following the beneficiary’s death, a qualifying dependant may succeed to the status where the dependant inherits the qualifying residence or immediately rents qualifying property and independently satisfies the programme requirements.
Legal Basis
The Global Residence Programme Rules, 2013 grants permanent residency rights to economically self-sufficient applicants keeping a permanent address in Malta in the form of residential property purchased or rented in any of the islands of Malta or Gozo.
Request an ITP Assessment & Assess Your Eligibility!
Eligibility for the Malta Global Residence Programme
- Open to non-EU nationals.
- Family applications allows, including:
- spouse, life partner.
- parents & grandparents of main applicant and spouse.
- brothers/sisters.
- dependent children up to 25 yrs.
- domestic staff.
Malta Global Residence Programme Costs & Requirements
- Applicant must be economically self-sufficient;
- A government application fee of €6.000.
- Applicants must purchase or rent a property;
- Applicants should have valid travel document;
- Applicants should have full EU health insurance cover;
- Annual cost: €15,000 tax, for the whole family covering the first €100,000 of foreign income remitted to Malta.
Who is this for
The Malta Individual Tax Programme may be suitable for:
- internationally mobile individuals relocating to Malta;
- entrepreneurs, investors and family office principals receiving foreign income;
- EU, EEA and Swiss nationals establishing residence in Malta;
- third-country nationals with an appropriate Malta immigration residence basis;
- retirees receiving qualifying overseas pensions;
- former United Nations officials receiving a UN pension;
- surviving spouses receiving a qualifying UN widow’s or widower’s benefit; and
- families seeking a coordinated Malta residence and personal tax framework.
The programme is not automatically the most efficient option for every Malta resident. Its suitability depends on expected foreign income remittances, the applicable minimum annual tax, pension composition, property plans and continuing tax exposure in other jurisdictions.
Why Malta
Malta offers internationally mobile individuals an established European legal and tax environment, English-speaking professional services and a tax system that recognises the distinction between residence and domicile.
For qualifying non-domiciled residents, Malta’s remittance-basis framework may distinguish between Malta-source income, foreign income received in Malta and foreign capital gains. The Individual Tax Programme overlays that wider system with a specific 15% rate for qualifying foreign income received in Malta.
The programme can therefore form part of a broader relocation strategy combining:
- personal tax residence;
- immigration residence;
- qualifying residential property;
- family relocation;
- pension planning;
- double taxation relief; and
- pre-arrival remittance planning.
Special tax status does not itself grant immigration residence and does not conclusively determine tax residence under Maltese law or an applicable double tax treaty.
Key Contacts
Dr. Jean-Philippe Chetcuti
Magdalena Velkovska
Moving to Malta? Assess Your Malta Tax Position.
Requirements
Every applicant must:
- maintain qualifying residential property;
- possess stable and regular resources sufficient to support the applicant and dependants;
- hold a valid travel document;
- maintain sickness insurance covering the applicant and dependants across the European Union;
- not be domiciled in Malta;
- not intend to establish a Maltese domicile within five years from the application;
- communicate adequately in Maltese or English;
- satisfy the fit-and-proper assessment; and
- remain represented by an authorised registered mandatary.
An individual may not benefit under more than one Individual Tax Programme category or concurrently benefit from specified other Maltese preferential personal tax regimes.
Applicants must qualify under one of four programme categories.
The minimum tax is payable in full in the year in which special tax status is granted and in the year in which the beneficiary ceases to possess the status.
Tax paid under the minimum-tax provisions is not refundable.
Rent or Purchase Qualifying Property
The Individual Tax Programme is a special tax status framework, not an investment programme. It does, however, require the beneficiary to maintain qualifying residential property as the principal home worldwide.
Qualifying property
The applicant must either:
- purchase residential property in Malta or Gozo for at least €700,000; or
- rent residential property in Malta or Gozo for at least €14,000 per year.
The property must be occupied as the beneficiary’s primary residence.
It must not be let or sublet while serving as the qualifying property.
Administrative Fees
- Initial application fee: €8,500
- Five-year renewal fee: €2,500
Both fees are non-refundable.
Professional fees, property costs, insurance, translations, certifications and other implementation expenses are separate.
Process/Timeline
Applications must be submitted to the Commissioner for Tax and Customs through an authorised registered mandatary.
The Rules do not prescribe a fixed processing period. Timing will depend on the applicant’s circumstances, documentary readiness, property arrangements and the Commissioner’s review.
The first stage determines:
- the appropriate programme category;
- whether the expected 15% tax exceeds the minimum annual tax;
- the applicant’s immigration residence basis;
- Malta tax residence and domicile implications;
- pension eligibility, where relevant; and
- whether ordinary resident non-dom taxation should also be considered.
Before remittances or relocation, the applicant should review:
- foreign income sources;
- pensions and retirement arrangements;
- capital and capital gains;
- bank-account segregation;
- double taxation relief;
- former-country residence exposure; and
- the timing of income receipts and remittances.
The applicant secures qualifying residential property and obtains the required sickness insurance for the applicant and dependants.
Property documentation and insurance coverage must satisfy the requirements applying at the time of submission.
The authorised registered mandatary prepares and files the application, supporting evidence, declarations and due-diligence documentation.
The €8,500 administrative fee is payable when the application is submitted.
The Commissioner may request further documents, information, certifications or declarations.
Special tax status begins when the Commissioner determines in writing that the applicant qualifies as a beneficiary.
The beneficiary must continue to:
- maintain qualifying property;
- maintain medical insurance;
- satisfy the relevant pension-remittance condition;
- pay the minimum annual tax;
- file the prescribed return;
- notify relevant changes;
- retain authorised registered mandatary representation; and
- avoid remaining in another single jurisdiction for more than 183 days in a calendar year.
Before expiry, continued eligibility should be reviewed and a renewal application submitted with the required supporting documents and €2,500 renewal fee.
Renewal is available for further five-year periods.
FAQs
[question]1. When does the Malta Individual Tax Programme take effect?[/question]
[answer]The Individual Tax Programme Rules take effect on 1 January 2027. Applications under the new framework should therefore be submitted from that date, subject to the Commissioner’s prescribed forms and procedures.[/answer]
[question]2. Does the programme tax all income at 15%?[/question]
[answer]No. The 15% rate applies to qualifying foreign income received in Malta. Income that does not qualify for the preferential treatment is generally taxed separately at 35%.[/answer]
[question]3. What is the minimum annual tax?[/question]
[answer]The minimum is €35,000 for global resident and EU/EEA/Swiss status, €15,000 for retired pensioner status and €20,000 on qualifying non-UN income for UN pensioner status.[/answer]
[question]4. Is property investment required?[/question]
[answer]No investment contribution is required, but the beneficiary must maintain qualifying residential property. This means purchasing property for at least €700,000 or renting property for at least €14,000 annually.[/answer]
[question]5. Does the programme grant Malta residence?[/question]
[answer]No. The programme grants special tax status. The applicant must separately establish a lawful immigration residence basis and determine the individual’s Malta tax-residence position.[/answer]
[question]6. Can family members be included?[/question]
[answer]A spouse or stable partner, minor children, qualifying dependent children under 25 and certain children with serious illness or disability may fall within the statutory definition of dependant.[/answer]
[question]7. How long does the status last?[/question]
[answer]Special tax status is granted for five years and may be renewed for further five-year periods, subject to continued eligibility, supporting documentation and the €2,500 renewal fee.[/answer]
[question]8. How long does an application take?[/question]
[answer]The Rules do not prescribe a fixed processing period. Timing depends on documentary readiness, the applicant’s circumstances, property and insurance arrangements, and the Commissioner’s review.[/answer]
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