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Malta’s New Individual Tax Programme Rules (Effective 1 January 2027)

The Maltese Government has published the Individual Tax Programme Rules, 2026, introducing a new framework for individuals seeking special tax status in Malta. The new rules will come into force on 1 January 2027 and will replace a number of existing special tax residence programmes.

Key Highlights

Four New Tax Status Categories

Eligible applicants may apply for one of the following categories:

  • Global Resident Status
  • EU, EEA & Swiss Resident Status
  • Retired Pensioner Status
  • UN Pensioner Status

Applications must be submitted through an Authorised Registered Mandatary.

Attractive 15% Tax Rate

Qualifying individuals will benefit from a 15% tax rate on foreign-source income remitted to Malta, subject to the programme conditions.

Minimum annual tax payable:

  • €35,000 for Global Resident and EU/EEA/Swiss Resident categories
  • €15,000 for Retired Pensioner Status
  • €20,000 for UN Pensioner Status

Income not qualifying under the programme may remain taxable at the standard rates.

Property Requirements

Applicants must occupy a qualifying property as their primary residence in Malta.

The property must be either:

  • Purchased for at least €700,000, or
  • Rented for a minimum annual rent of €14,000.

Eligibility Conditions

Applicants must also satisfy several requirements, including:

  • Holding qualifying nationality/status depending on the category applied for.
  • Not domiciled in Malta and that he does not, within five (5) years from the date of application in place, intend to establish his domicile in Malta.
  • possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals, for himself and his dependants.
  • Demonstrating sufficient financial resources.
  • Being considered a fit and proper person.
  • Communicating adequately in one of Malta’s official languages.
  • In possession of a valid travel document.

Additional conditions apply for pensioner categories, including minimum pension income received in Malta.

Duration of Status

Special tax status will be granted for five years, with the possibility of renewal in further five-year periods, subject to continued compliance.

Applicants granted status before 31 December 2026 will retain their status until 31 December 2031.

Administrative Fees

  • Initial application: €8,500
  • Renewal application: €2,500

Ongoing Compliance

Beneficiaries must continue to satisfy the programme requirements, including:

  • Maintaining the qualifying property.
  • Paying the minimum annual tax by 30 April.
  • Filing the required annual declarations.
  • Notifying the Commissioner of any changes affecting eligibility.

Failure to comply may result in withdrawal of the special tax status and administrative penalties.

What This Means

The new Individual Tax Programme consolidates Malta’s special tax residence framework into a modernised regime while maintaining the attractive 15% tax rate that has made Malta a competitive destination for internationally mobile individuals, retirees and high-net-worth families.

Although the programme introduces updated eligibility criteria, enhanced compliance requirements and fixed term approvals, it continues to offer an attractive tax environment for qualifying individuals relocating to Malta.

If you would like to discuss how these changes may affect you, or assess eligibility under the new rules, please contact our team. We would be pleased to assist with tailored advice and the application process.

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#Malta

#Malta tax reform

#Tax

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