The Global Residence Programme (GRP)
Beneficiaries under the Global Residence Programme will be issued with a residence permit entitling them to reside in Malta, benefit from a reduced fixed tax rate of 15% on all foreign sourced income that is remitted to Malta, as well as travel for touristic purposes within the Schengen area without the need of applying for additional visas.
An individual shall be entitled to apply for special tax status under the GRP programme, if the following conditions are adhered to. The applicant must:
- be a third country national and not a citizen of Malta, the EU, EEA or Switzerland;
- be able to adequately communicate in English or Maltese;
- not benefit from any other special tax status in Malta;
- be in possession of a valid travel document;
- be in receipt of stable and regular resources which are sufficient to maintain himself and his dependents, without recourse to social assistance;
- set up a health insurance policy which covers the main applicant and his dependents in respect of all risks across the European Union.
Phase 1 – Application
Payment of an Administration Fee of €6,000 (Reduced to €5,500 if property is situated in Gozo or the South of Malta) and provision of all relevant documents to Malta International Tax Unit (ITU).
Phase 2 – Due Diligence
Applicant must be deemed to be a “fit and proper person” and satisfy all due diligence checks carried out by the International Tax Unit (ITU), which take approximately six (6) weeks to complete. If the application is approved a letter of Approval in Principle will be issued and the principle applicant will be invited to attend an introduction meeting at ITU.
Phase 3 – Investment
1. Acquisition of a Qualifying Property Holding in Malta. In terms of the regulations, a qualifying property is an immovable residential property situated in Malta that is either:
– purchased for a minimum value of € 275,000 (or in Gozo or the south of Malta for a value of not less than € 220,000)
– leased for not less than € 9,600 per annum, (or in Gozo or the south of Malta for an annual rent of not less than € 8750)
The qualifying property must be retained for the duration of his or her stay and must not be shared with any other persons not listed as dependents on the residence certificate. After submitting the Qualifying Property agreement, the investor must then pay the first tax contribution.
Phase 4 – Taxation
The applicant must pay a minimum tax of €15,000 every year; All foreign sourced income which has been remitted to Malta shall be taxable at 15%, with the possibility of claiming double tax relief on such income.
Income generated in Malta would be taxable at 35%. Income generated outside of Malta and not remitted to Malta would not be taxable in Malta, but may be taxable abroad. A beneficiary and his spouse cannot opt for a separate tax computation.
Phase 5 – Completion and Continuous Obligations
Upon completion of all preceding phases, a letter of approval in principal will be issued and then sued to apply for a Maltese residence card. An applicant who has been granted special tax status under the Global Residence Programme must comply with the following obligations on a yearly basis:
- The Qualified Property Holding must be retained (or replaced with another immovable property that meets the minimum requirements of the programme);
- The applicant must not reside in any other jurisdiction for a period exceeding 183 days;
- The health insurance policy must be retained for the duration the stay;
- Main applicant must not become domiciled in Malta;
- Pay the required annual tax;
- Submit an annual tax return, together with an annual declaration confirming that all conditions of the programme have been complied with.
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