Tax Residence Programme (TRP)
The Residence Programme (TRP) is a programme designed to attract individuals who are nationals of the EU, EEA or Switzerland and who are not permanent residents of Malta. Individuals who had been granted a special tax status under the previous regime, referred to as the High Net Worth Individuals Rules – HNWI) have the opportunity to apply to the Commissioner of Revenue to be granted special tax status under The Residence Programme Rules. Third country nationals are not eligible to apply for this programme however they are entitled to apply for the Global Residence Programme.
Benefits of the Tax Residence Programme
- TRP participants enjoy indefinite residency in Malta without any minimum stay requirement;
- As an EU member state, Malta grants participants EU residency, allowing free travel within the Schengen Area;
- Malta offers excellent healthcare, education, and infrastructure, as well as a pleasant Mediterranean climate. English and Maltese are official languages in Malta;
- The TRP also provides favourable tax benefits, including a flat tax rate of 15% on foreign income remitted to Malta, with a minimum annual tax liability of €15,000.
- No tax liability is imposed on foreign income not remitted to Malta, and there is no capital gains tax on income generated outside Malta.
- Malta’s extensive network of double tax treaties, encompassing over 70 countries, ensures participants can avoid double taxation on their income.
Tax residence
- Minimum annual tax: €15,000
- Residence in any other jurisdiction: not more than 183 days
- Government processing time: 3-4 months
- Favourable Tax Status: 15% flat rate
- Right to travel within the Schengen Zone
OTHER PROGRAMMES
Eligibility and Requirements of the Tax Residence Programme
An individual shall be eligible to apply for a residence permit in Malta under The Residence Programme, if they satisfy all of the following requirements:
Individual is not:
- An EU National (excluding a Maltese National); or
- A national of Iceland, Norway or Liechtenstein; or
- A national of Switzerland
An applicant who has dual citizenship i.e. having citizenship of one of the above jurisdictions and citizenship of another jurisdiction, is precluded from applying for special tax status in terms of the Tax Residence Programme.
They are not a person who is not a beneficiary in terms of any of the following programmes:
- Residents Scheme Regulations;
- High Net Worth Individuals;
- Global Residence Programme Rules;
- Malta Retirement Programme Rules;
- Qualifying Employment in Innovation and Creativity(Personal Tax) Rules; or
- Highly Qualified Persons Rules;
An individual may renounce the right to the benefits provided under any of the abovementioned Rules prior to submitting an application in terms of The Residence Programme.
Applicants must:
- Be of Good character
- Possess a valid travel document;
- Obtain international health insurance covering all risks throughout the European Union.
- Have adequate communication skills in Maltese or English are necessary.
- Have stable income and economic self-sufficiency.
- Own or rent a qualifying property is mandatory, along with ensuring that they do not reside in any other jurisdiction for more than 183 days
