Malta is rebuilding its special tax status for foreign residents. The Individual Tax Programme Rules, 2026, published as Legal Notice 195 of 2026 on July 14, 2026, come into force on January 1, 2027. Under the new rules, most beneficiaries pay a flat 15% on foreign income they bring into Malta, with a minimum annual tax of €35,000.
That minimum is more than double the €15,000 that applies under the current Global Residence Programme (GRP). The property thresholds rise even more: a qualifying purchase now has to cost at least €700,000, against €275,000 under the GRP.
According to tax advisers including PwC Malta, the new programme consolidates four existing schemes: the GRP, the Residence Programme for EU nationals, the Malta Retirement Programme and the UN Pensions Programme. People who already hold status, or who apply by December 31, 2026, keep their current terms until the end of 2031.
Key takeaways
- The Individual Tax Programme starts on January 1, 2027, under Legal Notice 195 of 2026.
- Foreign income received in Malta is taxed at 15%, with a €35,000 minimum for global residents and EU, EEA and Swiss residents.
- The qualifying property must cost at least €700,000 or rent for at least €14,000 a year, with no lower threshold for Gozo or the south.
- Status lasts five years and can be renewed for further five-year periods for a €2,500 fee. The application fee is €8,500.
- Existing status holders and applications received by December 31, 2026 stay under current terms until December 31, 2031.
Four statuses under one set of rules
The new rules create four categories of special tax status:
- Global resident status for third-country nationals who are not long-term residents of Malta.
- EU, EEA, Swiss resident status for nationals of those countries who are not Maltese nationals or permanent residents of Malta.
- Retired pensioner status for people whose pension is all received in Malta and makes up at least 75% of their chargeable income.
- UN pensioner status for people with a United Nations Joint Staff Pension Fund pension (or survivor benefit), at least 40% of which is received in Malta.
A person can hold only one status, and it cannot be combined with Malta’s other special tax regimes, such as the highly qualified persons rules.
GRP versus the Individual Tax Programme
The table compares the current GRP, set out in the Global Residence Programme Rules, with the new global resident status.
| Term | Global Residence Programme (current) | Individual Tax Programme (from 2027) |
|---|---|---|
| Tax on foreign income received in Malta | 15% | 15% |
| Minimum annual tax | €15,000 | €35,000 |
| Property purchase threshold | €275,000 (€220,000 in Gozo and the south) | €700,000 anywhere in Malta or Gozo |
| Annual rent threshold | €9,600 (€8,750 in Gozo and the south) | €14,000 anywhere in Malta or Gozo |
| Application fee | €6,000 (€5,500 for southern property) | €8,500, plus €2,500 for each five-year renewal |
The pensioner categories change as well. Under the Malta Retirement Programme, the minimum tax is €7,500 a year plus €500 per dependant. Under the new retired pensioner status, the minimum is €15,000 a year. For UN pensioners, the UN pension received in Malta is exempt, other foreign income received in Malta is taxed at 15%, and a minimum of €20,000 applies.
How the 15% tax and the minimum work
The 15% rate applies to income that arises outside Malta and is received in Malta by the beneficiary, their spouse and qualifying children. Relief for foreign tax paid is available under Malta’s double taxation rules. Other income that does not fall under the 15% rule is taxed at a flat 35%.
The minimum tax is due by April 30 each year, together with a return that shows the conditions are still met. It is not refundable, and it is payable in full both in the year the status is granted and in the year it ends. Every application, filing and notice must go through an authorised registered mandatary: a Maltese advocate, notary, legal procurator or accountant registered with the Commissioner for Tax and Customs.
In plain terms, a global resident pays 15% of remitted foreign income or €35,000, whichever is higher. Foreign income that stays outside Malta is not subject to the 15% charge.
Who qualifies
Beyond the category rules, applicants must show that they:
- own or rent a qualifying property and live there as their main home, with only dependants, household staff or notified family members living there with them;
- have stable and regular resources to support themselves and their dependants without Maltese social assistance;
- hold a valid travel document and sickness insurance covering all risks across the EU;
- are not domiciled in Malta and do not intend to establish domicile there within five years;
- can communicate adequately in Maltese or English, and are fit and proper persons.
A property bought for less than €700,000 before the rules come into force may still count as a qualifying property, under guidelines the Commissioner for Tax and Customs will publish.
When the status ends
The status ends from the start of the relevant year if the holder becomes a Maltese national or a long-term or permanent resident, stops holding the qualifying property (including by letting or subletting it), loses private medical insurance, or fails to pay the minimum tax on time. It also ends if the holder stays in any other jurisdiction for more than 183 days in a calendar year, or stops being represented by a registered mandatary.
The 183-day condition does not require 183 days in Malta, but it limits long stays elsewhere. Our guides to the 183-day rule and tax treaty tie-breaker rules explain why day counts alone rarely settle residence.
How Malta now compares
Even at €35,000, Malta’s minimum is well below the fixed charges in Italy and Greece. Italy’s flat tax on foreign income is €300,000 a year for people who move from 2026, as covered in our Italy flat tax guide. The regimes work differently, though: Malta taxes remitted income at 15% above the minimum, while Italy’s amount is fixed regardless of income. Our overview of non-dom regimes in Europe sets them side by side.
The new rules are a tax status, not a residence permit. Residence routes such as the Malta Permanent Residence Programme run under separate rules, and holding one does not by itself give special tax status.
Frequently asked questions
When does Malta’s Individual Tax Programme start?
The rules come into force on January 1, 2027. Applications under the current programmes received by December 31, 2026 keep the current terms until December 31, 2031.
What is the minimum tax under the new Malta programme?
The minimum is €35,000 a year for global residents and EU, EEA and Swiss residents, €15,000 for retired pensioners, and €20,000 for UN pensioners on their non-UN income.
Do current GRP holders have to pay €35,000?
Not before 2032. Status granted, or applications received, up to December 31, 2026 keep current terms until December 31, 2031. The rules do not say what happens after that.
Does the Individual Tax Programme give a Maltese residence permit?
No. It is a special tax status for people who are already eligible to live in Malta. Residence permits are handled under separate immigration rules.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.