Malta will introduce a new Individual Tax Program on January 1, 2027, replacing four existing special tax programs with a unified framework. The new rules maintain the 15% tax rate on foreign income remitted to Malta, while significantly increasing the minimum annual tax and property requirements for most applicants.

New Unified Tax Framework

The new program will cover four categories of applicants: third-country nationals, EU/EEA/Swiss nationals, retired pensioners, and UN pension recipients. It replaces the framework of four existing programs: the Global Residence Program, Residence Program, Malta Retirement Program, and UN Pensions Program.

Tax Changes

The 15% rate remains applicable to foreign income received in Malta, while other taxable income may be subject to 35% tax. Foreign income that remains outside Malta generally stays outside the Maltese tax net under the remittance basis for non-domiciled residents. Global residents and EU/EEA/Swiss residents will be subject to a €35,000 minimum annual tax, while minimums for retired pensioners and UN pensioners will be €15,000 and €20,000 respectively.

Higher Property Requirements

The new rules significantly increase the property thresholds. Applicants will need to purchase qualifying property worth at least €700,000 or lease qualifying property for at least €14,000 per year, compared with €275,000 and €9,600 respectively under the current GRP. The application fee will also increase to €8,500, while renewals will cost €2,500 every five years.

Transitional Protection

Applicants whose status is granted, or whose applications are received by December 31, 2026, will retain the existing treatment until December 31, 2031. This creates a limited window for applicants seeking to benefit from the current €15,000 minimum tax before the new framework takes effect.

Key Takeaway

The new framework represents a significant increase in the cost of Malta’s tax-residency route, particularly through the higher minimum tax and property thresholds. For eligible applicants considering Malta under the current rules, the December 31, 2026 transitional deadline is the key date to consider.

Summary

The new framework will introduce a €35,000 minimum annual tax for global residents and EU/EEA/Swiss residents, compared with €15,000 under the current Global Residence Program. Property requirements will also increase substantially, with qualifying purchases rising to €700,000 and leases to €14,000 annually. Applicants granted status or whose applications are received by December 31, 2026 will benefit from transitional protection through 2031.