Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Malta Global Residence Programme (GRP)
Malta's Global Residence Programme offers non-EU nationals a flat 15% tax rate on foreign income remitted to Malta (minimum €15,000/year), with residence rights and Schengen access.
Regime overview
- Status
- Active
- Type
- Preferential
- Duration
- Indefinite
- Highlight
- 15% flat tax on remitted foreign income, capital gains exempt
Tax regimes comparison
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 35% / 8%
- Dividends
- None
- Wealth Tax
- None
- Inheritance Tax
- None
Global Residence Programme (GRP)
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 15% flat
- Foreign Income
- Remittance basis
- Capital Gains
- 0%
- Dividends
- 0%
- Wealth Tax
- None
- Inheritance Tax
- None
IP Box Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 1.75% effective
- Foreign Income
- Partially exempt
- Capital Gains
- 95% deduction
- Dividends
- Standard Malta rates
- Wealth Tax
- None
- Inheritance Tax
- None
Highly Qualified Persons (HQP) Rules
- Eligibility
- Residency
- Duration
- 5 years
- Income Tax
- 15% flat
- Foreign Income
- Taxed
- Capital Gains
- N/A
- Dividends
- N/A
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | Global Residence Programme (GRP) | IP Box Regime | Highly Qualified Persons (HQP) Rules |
|---|---|---|---|---|
| Eligibility | Any resident | Residency | Residency | Residency |
| Duration | Indefinite | Indefinite | Indefinite | 5 years |
| Income Tax | 0-35% | 15% flat | 1.75% effective | 15% flat |
| Foreign Income | Remittance basis | Remittance basis | Partially exempt | Taxed |
| Capital Gains | 35% / 8% | 0% | 95% deduction | N/A |
| Dividends | None | 0% | Standard Malta rates | N/A |
| Wealth Tax | None | None | None | None |
| Inheritance Tax | None | None | None | None |
| Learn more | Learn more |
Key benefits
15% flat tax on remitted foreign income
Foreign capital gains exempt, even if remitted
EU residence with Schengen access
Requirements and considerations
None
Investment required: EUR 275K property or EUR 10K/year rent
Migration pathways
Program details
The Malta Global Residence Programme (GRP) is a special tax status available exclusively to non-EU, non-EEA, and non-Swiss nationals. It provides a flat 15% tax rate on foreign-source income remitted to Malta, significantly below Malta's top marginal rate of 35%, while offering residence rights in an EU member state with Schengen Zone access.
The tax structure under GRP is highly favorable: foreign income not remitted to Malta is completely exempt; foreign capital gains are exempt even if remitted; only foreign income actually brought into Malta is taxed at the flat 15% rate. Income arising in Malta and capital gains realized in Malta are taxed at 35%.
A minimum annual tax of EUR 15K applies. Property requirements: purchase property valued at minimum EUR 275K (Malta) or EUR 220K (Gozo/South Malta), or rent for at least EUR 10K /year (Malta) or EUR 9K /year (Gozo/South Malta). Application fee: EUR 6K .
Interested in Global Residence Programme (GRP)?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
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ECJ Ruling on Malta CBI
EUR-Lex Court Judgment C-181/23·Last checked: 16/01/26
Merit-Based Naturalisation Regulations
Malta Parliament Legal Notice 159/2025·Last checked: 16/01/26
2025 Citizenship Act Amendments
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