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The Global Residence Programme Rules 2013

23.01.2015

The Global Residence Programme Rules ('GRP Rules') came into force with effect from 1st July 2013 and replace the special tax status for High Net Worth Individuals for non-EU/EEA and Swiss Nationals. The GRP Rules are set to attract third country nationals who wish to buy high-value property in Malta, whilst benefiting from a residence permit in Malta. Further incentives are given to those who invest in the South of Malta or Gozo.

Individuals who qualify under the GRP Rules are taxable at the rate of 15% on foreign source income remitted to Malta with the possibility to claim double taxation relief. Besides, a minimum tax of €15,000 is payable by the holder of the tax status in respect of any year of assessment. Then, a non-refundable one-off registration fee of €6,000 (€5,500 in the case of an applicant holding a property in the South of Malta) must be paid upon application.

For the application of the special tax status, the beneficiary, who is not a long-term resident, is required to hold a Qualifying Property Holding being either:

  • an immovable property in Malta for a value of not less than €275,000 or if the property is located in the South of Malta or in Gozo, the value shall not be less than €220,000; or
  • renting an immovable property in Malta for not less than €9,600 annually or where the property is located in the South of Malta or Gozo, the value shall not be less than €8,750.

In terms of the Rules, the special tax status may be inherited by a dependant of the deceased beneficiary who:

  1. has inherited the property that was the primary residence of such beneficiary; or
  2. rents a qualifying rented property immediately after the demise of the beneficiary, provided that the dependant satisfies all requirements under the Rules.

Under the GRP Rules, the applicant has continuing obligations, which are the following:

  • must not become a long term resident, a Maltese, EEA or Swiss national;
  • must retain in holding of the Qualified Property;
  • must retain insurance for himself/herself and his/her dependants and continue to have stable resources; and
  • must not leave Malta for a stretch of time longer than 183 days.

The GRP Rules also set up reporting obligations being the filing of an annual tax return and notifications that must be complied with.

Click here to download Global Residence Programme Rules 2013, in English.

Click here to download Global Residence Programme Rules 2013, in Russian.

Click here to download Global Residence Programme Rules 2013, in French.

Click here to download Global Residence Programme Rules 2013, in Chinese.