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Aiming to cover the needs of Private Clients, the Global Residence Programme (GRP) Rules caters for wealthy individuals from outside the EU, EEA or Switzerland interested in gaining tax residency within the European Union.
CSB Group is a licensed Agent by Community Malta and the Residency Malta Agency, with License number AKM-CSBI-21.
The Global Residence Programme – Malta
A Tax Residence Programme for non-EU, non- EEA and non- Swiss nationals.
The Global Residence Programme (GRP) Rules is aimed to attract wealthy individuals from outside the European Union, Switzerland or the European Economic Area seeking to take up tax residence in Malta.
Which are the main requirements to apply for the Global Residence Programme?
The applicant and his or her dependants must be represented by an Authorized Registered Mandatory (ARM) like CSB Group, who will advise and process the application for the Global Residence Programme.
Also, applicants have to be third-country nationals – or in other words, EU, EEA and Swiss nationals cannot apply for the Global Residence Programme (but they are allowed in “The Residence Programme”). Anyone with dual citizenship with the aforementioned is precluded from applying to special tax status under the Global Residence Programme, however, they can apply for The Residence Programme Rules. They must also not reside in another jurisdiction for longer than 183 days in a calendar year.
Applicants interested in applying under the GRP must not be benefiting from other tax programmes such as Residents Scheme Regulations, High Net Worth Individuals Rules, Malta Retirement Programme Rules, United Nations Pensions Programme Rules, Qualifying Employment in Innovation and Creativity Rules, or Highly Qualified Persons Rules.
On top of this, applicants must also receive a stable income to maintain both him/herself and any dependents without having to make use of the social assistance system in Malta.
He/she must also possess a valid travel document, a sickness insurance that addresses all risks Maltese nationals are normally covered by, can adequately communicate in one of the official languages of Malta, and is a fit and proper person.
Aside from the above, applicants will need to hold qualifying property in Malta with the following characteristics:
- Purchase of property for a minimum of €220,000 if located in Gozo or South of Malta or €275,000 if located in other parts of Malta.
- Rental of property for a minimum of €8,750 if located in Gozo or South of Malta or €9,600 if located in other parts of Malta for no less than 12 months, and in which no one else other than the applicants and their dependents reside
The above property requirement plus a non-refundable Application fee of €5,500 if the property is in Gozo or the South of Malta; or €6,000 if situated in other parts of Malta, is incurred when applying for the Global Residence Programme.
Who qualifies for the Global Residence Programme?
The Global Residence Programme is a very attractive programme for those wanting to get a special tax status and a base within the European Union. Aside from the main applicant, qualifying dependants are the following:
- The spouse of the main applicant, or the person with whom the beneficiary is in a stable and durable relationship;
- Children including adopted minor children, and children in the care and custody of the main applicant which are under 18 years old;
- Children including adopted who are not minors but are unable to maintain themselves due to circumstances of illness or disability of a serious gravity.
- Children between 18 and 25 years old, including adopted children, provided that such children are not economically active;
- Children including adopted who are not minors but who because of circumstances of illness or disability of a serious gravity, are unable to maintain themselves
- Dependent brothers, sisters and direct relatives in the ascending line of the main applicant or his/her spouse or the person with whom the beneficiary is in a stable and durable relationship.
The Global Residence Programme: The Benefits
Applicants taking up residence in Malta through the Global Residence Programme will benefit from a special and favourable tax status and treatment as follows:
- no Malta tax would be chargeable on income arising outside Malta which is not received in Malta;
- no Malta tax would be chargeable on capital gains realised outside Malta even if these are received in Malta;
- income arising outside Malta which is received in Malta would be chargeable to tax in Malta at the flat rate of 15%;
- income arising in Malta and capital gains realised in Malta would be taxable in Malta at the higher rate of 35%.
Also, applicants will be entitled to the relief of double taxation otherwise suffered on income arising outside Malta.
Furthermore, applicants will be able to enjoy the benefits of living on a sunny island in the Mediterranean with lovely weather and crystal-clear sea, recently voted the second-best diving destination in the world, also home to three of the World UNESCO Heritage Sites. Malta boasts excellent political stability and is a member state of the Schengen Area, offering the chance to move freely within all 26 member countries. Outstanding public and private healthcare are available, granting Malta the fifth position amongst 100+ countries as ranked by the World Health Organisation (WHO).
Some fine line: a minimum tax of €15,000 is payable yearly which covers the income of the beneficiary and his/her dependents arising from outside Malta and received within Malta. Applicants cannot reside in any other jurisdiction for more than 183 days per year.
How can we help you? The Application Process
CSB Group, as an Authorised Registered Mandatory, will assist you all the way for you to be granted with a special tax status and your international tax planning needs.
Our advice – Contact us!
CSB Group will give you preliminary advice and a preliminary Formal Tax Opinion if needed. We will perform Tier 1 Due Diligence checks as part of our onboarding process and get everything ready for the preparation of your application.
Our team will help you prepare the forms and all relevant documentation. Once completed and vetted by our team, the application will be submitted to the International Tax Unit from the Commissioner for Revenue of Malta.
Generally speaking, the application will comprise different documents like birth and marriage certificates, police criminal records, passport copies, bank reference letters, etc.
To be noted is that all documents must be legalised and counter-legalised (or Apostilled) and translated into English if in any other language.
We will provide you with a detailed checklist and support all along the way until your application is approved and you can be issued with the special tax status and residence cards.
Application Approval – Special Tax Status
After passing all due diligence checks, the application will be approved. The Commissioner will issue a Letter of In Principal Approval, and the property requirement will need to be fulfilled. A short interview with the Commissioner will then follow suit and, if the outcome were to be positive, the Special Tax Status will be granted.
The entire processing time would typically take 3-4 months since submitting the application, but this may take longer depending on each file’s particularities.
Obligations to be adhered to
Once granted the benefit of special tax status under the Global Residence Programme, one must submit the Annual Tax Return.
When processing the application for the Global Residence Programme Rules, the Commissioner may request additional information and documents such as certifications and declarations, which must be submitted in a timely manner as requested.
Should the beneficiary no longer be represented by an ARM, he/she should authorise another Mandatary and inform the Commissioner of such change.
The applicant also understands that the special tax status granted by the Global Residence Programme ceases with retrospective effect from the date in which the Commissioner determines the decision in writing if:
- the beneficiary were to become a national of Malta or another EU member state, Iceland, Norway, Liechtenstein or Switzerland;
- the applicant does not hold a qualifying property at any time after the appointed day or becomes a long-term resident at any time after the appointed day;
- a health insurance which addresses all risks normally covered for Maltese nationals is not in possession of the beneficiary or their dependents;
- the Minister of Justice deems the beneficiary’s presence not to be of public interest;
- the beneficiary stays in another jurisdiction for more than 183 days in a calendar year.
If notifications of any such event are not made, the applicant will have to pay an administrative penalty of €5,000.
CSB Group – Your trusted Advisor
With over 30 years of experience in the corporate and financial services industry in Malta, CSB Group is committed to provide top-notch services to Private Clients worldwide. CSB Group, has been providing Investment immigration services to High-Net-Worth families since the inception of these programmes.
As an Authorised Registered Mandatory (ARM), the CSB Group Advisory team will be happy to assist you and provide you with a quote for the Global Residence Programme that can satisfy the needs of you and your family.
Our team at CSB Group will guide you through acquiring residency in Malta through the Global Residence Programme, whilst the Consultants from Sotheby’s International Realty will be able to find you the right property to fulfil the investment criteria and your needs.
We have had the good fortune of working with Andres and his team at CSB on a variety of citizenship and residency matters for our clients. CSB has given us thoughtful and thorough advice and been an invaluable partner. Despite being many time zones and thousands of miles away, Andres and his team are incredibly responsive and willing to speak at any hour of the day. We would certainly recommend them to anyone seeking best-in-class legal advice related to global citizenship and residency issues.
An independent investment office
We chose Malta as our new permanent home and CSB Group to help us through the residency process. They went way beyond our expectations treating our application as if it were their own. Their service was nothing short of stellar from understanding our needs preparation of the required documentation, and follow-up phase during a period with the sharpest movement restrictions. Malta deserves a place on every investor’s radar, mostly because of the surprising efficiency permeating the place, efficiency which starts with CSB.
"CSB provides us with a wide range of professional services and we are equally happy with any of them. We’d recommend CSB to any company looking for a solid partner to support its Malta-based business."
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