Malta Global Residence Programme: A Comprehensive Guide
Overview:
The Malta Global Residence Programme (MGRP), launched in 2013, is a government-backed residency by investment program designed to attract high-net-worth individuals from non-EU countries.
In essence, this program grants you Maltese residency in exchange for purchasing or renting property in Malta, paying a one-time administrative fee, and becoming a tax resident, which requires an annual tax payment of at least €15,000.
Eligibility Criteria:
To apply for the Malta Global Residence Programme (MGRP), you must meet the following basic requirements:
Eligibility: You must be a non-EU citizen, at least 18 years old, in good health, and have a clean criminal record.
Property Investment: You have two options:
- Rental: You must rent a property with an annual rent of at least €9,600. The one-time administrative fee for this option is €6,000. If the property is in Gozo or southern Malta, the minimum annual rent is €8,750, and the administrative fee is reduced to €5,500.
- Purchase: You must buy a property worth at least €275,000. The administrative fee is a minimum of €6,000. If the property is in Gozo or southern Malta, the minimum value is €220,000, and the administrative fee is reduced to €5,500.
Financial Stability: You must prove you have a stable and sufficient income to support yourself and your family in Malta.
Taxes: As an MGRP participant, you will receive a five-year tax reduction. However, you must become a Maltese tax resident and pay a minimum of €15,000 in tax per year. Any foreign income you receive in Malta is subject to a 15% tax. However, income you earn outside of Malta is not taxed if it is not brought into the country.
Health Insurance: You must spend at least €400 per person on health insurance for yourself and your dependents.
Bank Guarantee: You are required to provide a bank statement proving you have a minimum of €30,000 in your bank account for each applicant, serving as a financial guarantee.
Program Advantages:
Compared to similar programs in other countries, the Malta Global Residence Programme (MGRP) offers the following advantages:
1. Schengen Visa Equivalent: The Malta residence permit functions as a Schengen visa, allowing holders to stay in other Schengen countries for up to 90 days within every 180-day period.
2. No Minimum Stay Requirement: The MGRP does not impose any minimum stay requirement. You can hold the visa and spend extended periods outside of Malta.
However, since one of the prerequisites for participating in the MGRP is becoming a Maltese tax resident, you cannot spend more than 183 days in any other country within a calendar year, nor can you become a tax resident of another country.
3. Tax Benefits: MGRP participants automatically become Maltese tax residents and enjoy special tax benefits:
- Income earned within Malta is taxed at 35%.
- Foreign income remitted to Malta is taxed at 15%.
- Foreign income not remitted to Malta is not taxed.
4. Access to Top-tier Education and Healthcare: Malta offers high-quality education and healthcare systems.
5. Business Opportunities: MGRP participants can apply for a special work visa, allowing them to start businesses and operate companies within Malta.
Application Process:
Applying for the Malta Global Residence Programme (MGRP) is not a DIY process. You must work with a licensed agent who will manage your entire application, which is broken down into four main steps:
1. Preparing and Submitting Documents
You can submit your application yourself or, more typically, have your licensed agent submit it to the Maltese Inland Revenue Department (IRD). At this time, you will need to pay the €6,000 one-time administrative fee.
The required documents for the application include:
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Identity Documents: Valid passports for all main applicants and dependents, along with passport-sized photos, and documents proving relationships, such as birth and marriage certificates.
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Application Forms: Completed application forms, which can be filled out online.
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Proof of Health Insurance: Documentation showing you have purchased sufficient health insurance for yourself and all dependents for one year.
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Criminal Record Check: A clean criminal record certificate from a law enforcement agency in your country of residence for all adult applicants.
All documents not in English must be translated and notarized. Your licensed agent will typically handle the collection, notarization, and submission of all materials.
2. Background Check
The IRD will review all submitted materials and conduct a background check. This entire process typically takes between three to four months, and applicants may be asked to provide additional information during this time.
3. Interview and Final Approval
After the background check is complete, you will need to have a follow-up interview with the IRD. This is not a very formal meeting and can be conducted either remotely online or in person at their office in Malta.
Once the interview is successfully completed, the IRD will issue a Letter of Intent confirming your participation in the MGRP program. At this stage, you must complete a number of requirements, including paying the minimum tax amount, purchasing or renting a qualifying property, acquiring health insurance, and making a bank deposit.
After you have fulfilled all of these requirements, you will be granted Malta’s Special Tax Status and will be able to proceed with the application for your residence card.
4. Biometrics and Residency Card
The application for your residence card is completed entirely through the Maltese government’s online system. Typically, within 2 to 4 weeks of submitting your application, you will be asked to travel to Malta to have your biometric data (fingerprints and a photo) collected.
Once the cards are produced, the Identity Malta Agency (IMA) will mail the residence cards for you and your family to your address in Malta.
Minimum Residence Requirement:
The MGRP does not impose any minimum stay requirements for participants. However, legally, since you must be a Maltese tax resident, you cannot spend more than 183 days in any other location outside of Malta within a single calendar year.
Dependents:
Under the Malta Global Residence Programme (MGRP), the main applicant’s spouse, children under 18, financially dependent children aged 18 to 25, financially dependent siblings, parents, and grandparents are all eligible to obtain a residence permit as dependents.
Visa Validity:
The initial validity of the Malta MGRP residence card is one year, and it can be renewed every two years thereafter.
MGRP holders are required to submit a tax status declaration to the Maltese tax office by April 30 each year, proving that they have paid the required taxes.
To be eligible to apply for Maltese citizenship, a foreigner must meet several requirements:
Residency: You must have lived legally in Malta for a total of five years. This includes two specific periods:
- You must have lived in Malta continuously for the 12 months immediately before you apply, without leaving the country.
- In the six years leading up to that 12-month period, you must have resided in Malta for at least four years in total.
Good Character: You need to be vouched for by at least two Maltese citizens who can confirm you are of good moral character.
Language: You must pass a language test in either English or Maltese.
Frequently Asked Questions:
What are the differences between the Malta Global Residence Programme (MGRP) and the Malta Permanent Residence Programme (MPRP)?
While both programs share similarities in requiring applicants to purchase or rent property and pay a government fee, there are several key differences between them:
1. Government Fees and Tax Residency: The government fee for the MGRP is significantly lower than that for the MPRP. However, under the MGRP, you must become a Maltese tax resident and pay an annual tax of €15,000.
- In simple terms, the minimum theoretical investment for the MGRP is €34,950 for the rental option and €271,000 for the property purchase option.
- For the MPRP, the minimum theoretical investment is €184,000 for the rental option and €384,000 for the property purchase option.
2. Type of Visa Issued: The MGRP issues a one-year renewable visa, while the MPRP issues a permanent residence visa.
3. Tax Benefits: MGRP participants can benefit from certain tax relief measures in Malta, whereas MPRP participants must adhere to Maltese tax policies without any tax exemptions.
Can I recover my investment under the MGRP?
If you participate in the MGRP through the property purchase option and later decide to relinquish your Maltese residency or have already obtained permanent residency or citizenship in Malta, you have the option to sell the property and recover part of your investment.
Official Links:
Malta Global Residence Programme: https://mtca.gov.mt/personal-tax/individual/special-schemes/global-residence-programme-rules
Useful Links:
Malta Travel Guidebook 2025 – 2026 (FULL COLOR): https://amzn.to/470wYYD
DK Top 10 Malta and Gozo (Pocket Travel Guide): https://amzn.to/3J2wusY
The History of Malta: A Mediterranean Gem of History and Culture: https://amzn.to/4oasl56
A Sunny Place for Shady People: How Malta Became One of the Most Curious and Corrupt Places in the World: https://amzn.to/4nHFFOB