DISCLAIMER: This post was last modified on 13 September 2024. Some information in this article may not be updated.

Malta has emerged as a significant tax jurisdiction thanks to its residence programmes. With its strong economy, strategic location and high quality of life, Malta’s tax residency programmes provide substantial advantages for high-net-worth individuals (HNWIs) and businesses looking to maximise their finances.  

Malta as a Business Destination

Strategic Location

As a member of the European Union, Malta has access to the region’s single market and visa-free travel to all its member states. Maltese businesses can also benefit from EU trade agreements in key markets such as the United States, Canada, Japan and South Korea. Businesses and HNWIs considering residency in Malta can easily trade, invest and operate within the EU’s regulatory framework.  

Economic and Political Stability

According to a report by the Central Bank of Malta, the country’s GDP growth is projected to persist at a healthy rate of 3.5%. Inflation is also expected to drop from 5.6% in 2023 to 2.4% by 2024. In addition, the government’s fiscal position is improving, with the deficit-to-GDP ratio projected to decline to 4.1% in 2024. Despite moderate growth, Malta’s economic and political outlook remains robust, providing a stable business environment in the coming years. 

High Quality of Life

Malta offers a higher quality of life than many other European countries. Its excellent healthcare system, access to education, low cost of living and social support all contribute to an improved quality of life for Maltese residents. The 2024 World Happiness Report shows that Malta ranked the 40th happiest country worldwide. 

Tax incentives and programmes

The country offers a flat corporate tax rate of 15% but provides residency benefits designed for foreign investors. Acquiring Malta residency can help business owners obtain tax incentives and exemptions for certain types of income and make minimum annual tax payments depending on an individual’s tax programme. 

Below, we delve into the different tax residence programmes for businesses and HNWIs seeking to expand in Malta.

What are the pathways to Malta tax residency? 

Malta Startup Residence Programme (MSRP) 

This programme attracts innovative startups and founders from non-EU countries who intend to establish and operate their startup ventures in Malta. This programme allows residency by investing a specific amount in a startup company. By granting a 3-year residence permit (extendable to 5 years), business owners can scout for local and international talent in Malta. 

Malta Retirement Programme 

The Malta Retirement Programme (MRP) is a good fit for non-employed nationals from the EU, non-EU countries, the European Economic Area (EEA) and Switzerland who receive pensions as their income. 

The programme allows individuals to hold non-executive board positions in Malta-based companies. It offers a flat 15% corporate tax rate on foreign-sourced income remitted to Malta. In addition, it offers a minimum annual tax payment of €7,500 and an exemption from tax on foreign capital gains.

Malta Residence Programme

The Malta Residence Programme offers EU, Iceland, Norway, Liechtenstein and Swiss citizens residency in Malta with a special tax status. Benefits include a flat 15% tax on foreign-sourced income, a minimum annual tax payment of €15,000 and exemption from tax on foreign capital gains.  

Malta Permanent Residence Programme 

This offers nationals from developing countries a path to permanent residency in Malta. Its benefits include indefinite residency, visa-free Schengen travel, penetrating the real estate market and the right to settle in Malta. The programme is based on a residency by investment scheme requiring significant property or government contributions. Unlike the Malta Residence Programme, this residency can lead to Maltese citizenship. 

Malta Global Residence Programme 

This programme allows non-EU, non-EEA and non-Swiss nationals to take up residence in Malta, a Mediterranean island in the European Union, offering easy travel within the Schengen Area. 

This residency offers a flat 15% tax rate on foreign income remitted to the country, with a minimum annual payment of €15,000. Malta offers tax-exempt status for foreign capital gains, while local source income is taxed at 35%. Additionally, holders benefit from double taxation agreements.

Nomad Residency Programme

Nomad residents in Malta can work remotely from the country while keeping their jobs in another country. The programme offers a four-year residency permit and Schengen travel privileges. It also provides a reduced income tax rate of 10% for authorised work. To qualify, individuals must meet specific criteria, including a minimum income and property rental. This provides an excellent opportunity for entrepreneurs looking for a new base in Europe. 

Interested in applying for Malta Residency?

The several pathways in applying for Malta tax residency offer vast opportunities for business owners and HNWIs to expand in and access the European market. The application process for each pathway includes extensive fees and requirements that might be complicated.  

Bolder Group offers expert solutions and private wealth services for HNWIs who are seeking to relocate their business to Malta. For more information about these programmes and our solutions, contact our Maltese office today.

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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