Malta Residence Programme for EU Nationals

Residency For EU Nationals

The Malta Residence Programme (TRP) offers an exceptional opportunity for EU, EEA, and Swiss nationals to relocate to Malta and benefit from a favourable tax regime, all while enjoying a high quality of life in one of Europe’s most sought-after destinations. Whether you’re looking for a permanent home in the Mediterranean or simply wish to enjoy tax benefits and freedom of movement within the Schengen Area, the Malta Residence Programme can be your gateway to a new lifestyle.

This special tax status programme is designed to attract individuals who want to live in Malta long-term, with key advantages such as flat-rate taxation on foreign income, the exemption of foreign capital gains tax, and a relatively low minimum tax liability. The programme also requires applicants to demonstrate financial self-sufficiency, secure suitable accommodation in Malta, and maintain health insurance, ensuring that both individuals and their dependents can enjoy a comfortable and secure life on the islands. Whether you plan to work, retire, or run a business, the Malta Residence Programme is an ideal option for those looking to establish a permanent home in this Mediterranean island.

ELIGIBILITY CRITERIA FOR THE MALTA RESIDENCE PROGRAMME

To qualify for the Malta Residence Programme, applicants must meet the following requirements:

Nationality: Applicants must be EU, EEA, or Swiss nationals, and they must not be receiving any other Maltese tax benefits.
Property Requirements:
- Ownership: Applicants must purchase a property in Malta with a minimum value of €220,000 in Gozo or South Malta, or €275,000 in other areas of Malta.
- Rental: Alternatively, applicants can rent a property with a minimum annual rent of €8,750 in Gozo or South Malta, or €9,600 elsewhere in Malta.
Income: Applicants must show they have stable and regular income sufficient to support themselves and their dependants without relying on Malta’s social welfare system.
Health Insurance: Applicants must have valid health insurance that covers risks in the European Union for themselves and their family members.
Language: Proficiency in either Maltese or English is required.
Good Standing: Applicants must be in good standing with the Maltese authorities.

Beneficiaries cannot be domiciled in Malta, however they can take up employment or run a business on the islands.

DEPENDANTS

The Malta Residence Programme extends to the following dependants:

The spouse of the applicant.
Minor children (under the care of the applicant or spouse).
Adopted children under the care of the applicant or spouse.
Children over 18 who are unable to support themselves due to illness or disability.

TAX TREATMENT UNDER THE MALTA RESIDENCE PROGRAMME

Beneficiaries of the Malta Residence Programme benefit from the following tax advantages:

Flat Tax Rates:
- Foreign-source income remitted to Malta is taxed at a flat rate of 15%.
- Malta-source income is taxed at a flat rate of 35%.
Minimum Tax Liability:
- Beneficiaries must pay a minimum annual tax of €15,000, covering the applicant and any dependents, on income remitted to Malta.
Capital Gains:
- No tax is levied on foreign-source capital gains, even if they are remitted to Malta.
Double Taxation Relief:
- Malta offers comprehensive double taxation treaties, which ensure you are not taxed on the same income in both Malta and another country.

DOUBLE TAXATION RELIEF

Malta’s extensive Double Taxation Relief (DTR) framework safeguards residents under the Malta Retirement Programme from paying tax on the same income in multiple countries. With a wide network of treaties covering over 70 countries, the DTR ensures that foreign pensions, dividends, and other income are either taxed in the source country or Malta, not both.

For countries without a formal treaty, Unilateral Relief allows for a tax credit in Malta on foreign taxes paid, reducing the chance of double taxation. Malta also has no inheritance tax, though certain duties apply to the transfer of Maltese assets, such as a 5% rate on real estate and a 2% rate on shares in Maltese companies. Exemptions may apply for international business assets.

Overall, the DTR framework enables retirees to benefit fully from Malta’s favourable tax environment without duplicative taxation, preserving the value of foreign income and retirement funds.

ADMINISTRATIVE FEES

The application fee for the Malta Residence Programme is €6,000, which is non-refundable. For properties located in South Malta, the fee is reduced to €5,500, provided the property is purchased at the time of application.

YOUR TRUSTED PARTNER IN MALTA

With over 55 years of experience since 1969, Frank Salt Real Estate has built a trusted reputation for guiding clients through Malta’s residence and citizenship programs to find the perfect fit for their needs. We offer Malta’s largest selection of properties for sale and rent, and our team is highly experienced in assisting foreign clients looking to relocate or invest. From tailored residency guidance to exceptional real estate options, Frank Salt Real Estate is your reliable partner for a seamless transition to life in Malta.