MALTA Law and Practice Contributed by: Rosanne Bonnici and Rebecca Diacono, Fenech & Fenech Advocates
where a person has strong ties. An individual acquires a domicile of origin at birth, which is typically the dom - icile of their father at birth, but they may also acquire a domicile of choice during their life. An individual may only have one domicile at a given time and cannot be without a domicile at any point in time. Residence EU/EEA/Swiss nationals EU/EEA/Swiss nationals may take up residence in Malta to exercise their EU Treaty rights, on the basis of economic self-sufficiency, employment or study. While EU/EEA/Swiss nationals may move to Malta at any time, they are obliged to apply for registration with the Expatriates Unit at Identità after three months of residence in Malta, by submitting an application for a residence permit. They may also apply to benefit from one of Malta’s tax programmes, such as the Residence Programme (modelled on much the same lines as the GRP). Like the GRP, beneficiaries of the Residence Programme benefit from a flat 15% rate applying to any foreign- sourced income remitted to Malta, subject to a mini - mum annual tax payment of EUR15,000. Effective 1 January 2027, the GRP will be replaced with the ITPR, which includes an amended GRP frame - work. The main amendment relates to an increase in the minimum annual tax to EUR35,000. Non-EU/EEA/Swiss nationals While also entitled to relocate to Malta based on eco - nomic self-sufficiency, employment or study, non-EU/ EEA/Swiss nationals (TCNs) will be required to meet more stringent conditions in doing so. Where a TCN relocates to Malta on the basis of employment, their Single Permit Application sub - mitted to the Expatriates Unit is typically subject to labour market considerations, whereby the employer must provide justification for employing a TCN rather than an EU/EEA/Swiss national. There are certain exceptions to said labour market considerations, the most popular being the Key Employee Initiative Scheme, which exempts TCNs holding a managerial position and earning at least EUR35,000 per annum from labour market considerations; in addition, such
employees’ applications are fast-tracked in terms of processing time. On the other hand, a TCN wishing to relocate to Malta on the basis of economic self-sufficiency may, in prac - tice, do so only once they benefit from one of the available tax or immigration programmes, such as the GRP or the Malta Permanent Residence Programme (MPRP). Global Residence Programme (GRP) The GRP is a tax programme open to TCNs and applies a flat 15% rate to any foreign-sourced income remit - ted to Malta, subject to a minimum annual tax pay - ment of EUR15,000 (which, effective 1 January 2027, will increase to EUR35,000, with a five-year transition period for current beneficiaries under the ITPR). The GRP is very popular with TCNs who wish to relocate to Malta and set up a home there, as the processing time is relatively short. Once the applicant becomes a beneficiary of the programme, they can apply for a residence card that allows them to reside, settle and stay in Malta; this also serves as a Schengen visa. The TCN may opt to include their dependants, as defined in their GRP application, who would be enti - tled to apply for a residence card. Malta Permanent Residence Programme (MPRP) On the other hand, the MPRP is an immigration pro - gramme, modelled on its predecessor, the Malta Residence and Visa Programme. The MPRP is more onerous than the GRP on several fronts, as the fees payable to the authorities, the quantum of the dona - tion to be made to a voluntary organisation and the rental/purchase qualifying amounts involved therein are significantly higher than those under the GRP. It is, however, based on a different premise altogether, with taxation playing no part therein. Beneficiaries under the MPRP may apply for residence in Malta on the basis of economic self-sufficiency, with the added benefit of being eligible for a residence card valid for a five-year period (as opposed to a one-year period when applied for by a beneficiary of the GRP), subject to ongoing compliance obligations.
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