The Global Residence Programme (GRP), launched in 2013, enables qualifying applicants and their dependants to benefit from a flat tax rate of 15%.
The Global Residence Programme (GRP), launched in 2013, enables qualifying applicants and their dependents to benefit from a flat tax rate of 15% subject to satisfying certain conditions, including:
Malta’s remittance basis of taxation means non-domiciled individuals are only subject to Maltese tax on income arising outside of Malta to the extent that it is received in Malta. The status grants the beneficiaries and their qualifying dependents a flat 15% Malta tax rate on any such income which is remitted to / received in Malta, subject to the payment of the minimum tax (payable in full in both the year when the tax status is received and the year when it ceases to apply, as well as each full tax year for which the status applies). Any chargeable income and gains arising in Malta would generally be taxable at a flat 35% rate of tax. Finally, any capital gains arising outside of Malta, would not be subject to Maltese tax.
The status does not in and of itself entitle the holder to exercise any rights other than those expressly granted. For example, the exercise of employment activity remains subject to the employment license requirement.
Further, although only the beneficiary and their qualifying dependents are entitled to reside in the qualifying property, household staff (subject to various conditions) may also be permitted to reside with the beneficiary.
A Tax Residence Certificate (‘TRC’) may be issued by the Maltese Inland Revenue Department, however issuance of such is subject to the beneficiary satisfying to the Maltese Inland Revenue that s/he is a tax resident of Malta in terms of Maltese domestic law.
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