Program overview – Maltese Global Residence Program (GRP) is aimed at non-EU, non-EEA and non-Switzerland citizens, wishing to start a life in EU member state with luxurious living standards. Program is based on acquisition or rent of real estate which cannot be sold or sublet.
Property investment requires purchasing or leasing residential apartment for the main applicant, while all dependants applying simultaneously can be included under the same property investment. Invested amount depends on whether it is situated in Gozo and South of Malta (220 000 EUR or 8 750 EUR/year) or North of Malta (275 000 EUR or 9 600/year).
GRP grants temporary resident status within 3 – 4 months, extendable every 2 years to applicants, qualifying under set requirements and regulations. To secure resident status, applicants should restrain from leaving Malta for more than 183 days.
Requirements – The main applicant should be at least 18 years old, have good standing, and have no criminal record. Due diligence background checks are carried out by the governmental authorities to ensure the creditability and integrity of each adult applicant.
Politically exposed persons (PEPs) are not excluded by the GRP, and are still subject to the rigorous due diligence procedure as part of the application process to ensure creditability and integrity of the applicant.
Family – As part of this program every investor is entitled to include their spouse, dependant children up to 25 years, brothers, sisters, parents and other financially dependant direct relatives in ascending line. GRP may also include family’s special carer, who has been providing services for at least 2 years.
Living, Working, Studying, Travelling
Once resident status is obtained investors and their families can live, and work within Island. Residence permit holders are as well entitled to visa-free travels to the whole Schengen area.
Real estate – The key requirement in exchange of temporary residence permit is acquisition of residential property. Investors must choose to purchase or rent real estate for minimum 220 000 EUR if situated in Gozo or South of Malta and 275 000 EUR if situated in the rest of Island or lease instead with minimum rental value of 8 750 EUR and 9 600 EUR in Gozo or South of Malta and in the rest of Island respectively.
Despite real estate investment, government of Malta requires an application fee of 6 000, regardless the number of dependents. In addition, GRP applicants are required to pay an annual minimum tax of 15 000 EUR.
Program Investment costs
* the rental option may be chosen instead of the purchase option (minimum of 5 years). Property may be sold after a 5-year period.
** the applicant is allowed to invest in government bonds, stocks or similar securities.
Taxes – individuals are subjected to tax by the domicile and residence in Malta, not citizenship. Residence for tax purposes is established by demonstrating intention to reside in Malta indefinitely and definitely by a day count of 183 days. The resident, whose domicile is outside the Republic of Malta, is taxed by remittance.
Malta enjoys over 60 double tax treaties, persons who take up residence in Malta can receive their pensions in Malta free of tax at source and subject to a mere 15%. Global residents also benefit from Malta’s double taxation agreements existing with most European countries, Canada, Australia and the USA, ensuring that tax is never paid twice upon the same income. Overseas capital funds invested locally are only taxed on any interest or dividends generated thereon, again at a 15% flat rate, though no tax is charged on capital gains realized outside Island, even if these are received in Malta. Annual minimum tax payment is 15 000 EUR, which must be paid whether client transfers income to Malta or not and it is due on yearly basis. Further remitted foreign income will be taxed at 15% if payable taxes exceed 15 000 EUR.
Advanced tax planning can avoid up to 35% Maltese tax on all transfers out of the funds for all payments indicated in this schedule. This includes advice on bank transfers and bank account planning, as well as legal tips on international tax planning opportunities using Maltese entities, tax planning and asset protection in property ownership.
Timescale and Payment Outline
Step 1 (3 – 5 days)
Pre-due diligence enables avoiding possible issues and assures eligibility. It also allows for ineligible applicants to save unnecessary costs, time, and effort.
Step 1 requires:
|Passport copies (including dependants)||Full details on profession or business|
|Residential address||Origin of finances|
|Full information about dependants|
In cases of questionable pre-due diligence outcomes, enhanced background checks may be required, including possible cooperation with the relevant authorities.
Step 2 (2 – 3 weeks)
Collection and preparation of documentation. Our lawyers will assist and assure that all paperwork is completed and ready for submission. At this step non-refundable 6 000 EUR application fee and health insurance payment is required.
Step 2 requires:
Step 3 (2 – 3 months)
Application with additional documentation will be forwarded for due diligence process on applicants behalf (no presence required), that takes 2 – 3 months on average.
Step 4 (12 months)
Once due diligence and application processing is finished, letter of intent is issued and valid for 12 months. In such period investor must provide Identity Malta with property lease or purchase agreement, if that was not done previously. Annual tax of at least 15 000 EUR is required.
Step 5 (20 days)
Once real estate purchase or lease agreement is finalized, biometric data should be provided in order to receive resident permit (processed within 20 days).