Malta’s New Tax Program Starts in 2027 With €35,000 Annual Minimum

Malta’s new Individual Tax Program takes effect on January 1, 2027, raising the minimum annual tax for global residents and qualifying EU, EEA and Swiss residents to €35,000. The 15% tax rate on foreign income remitted to Malta remains unchanged, but property requirements and application fees will increase.

The rules, published in Legal Notice 195 of 2026, also provide a transition period. Existing beneficiaries and qualifying applications received by December 31, 2026, fall under provisions protecting their current status until December 31, 2031.

What Changes Under Malta’s New Tax Program?

For non-EU applicants using the current Global Residence Program, the minimum annual tax rises from €15,000 to €35,000. This is a minimum liability, rather than a flat tax: the amount payable can be higher depending on taxable income.

The new framework also raises several entry costs:

Under the current Global Residence Program, property purchase thresholds start at €220,000 in southern Malta and Gozo, or €275,000 elsewhere. Annual rental thresholds start at €8,750 and €9,600 respectively.

Properties purchased below €700,000 before the new rules take effect may continue to qualify, subject to guidelines from the Commissioner for Tax and Customs.

How Will Foreign Income Be Taxed?

The program retains the 15% rate on foreign income received in Malta, with relief available for tax paid abroad. Other taxable income covered by the rules is subject to a 35% rate.

Foreign income that remains abroad generally falls outside Maltese taxation under the remittance basis for residents who are not domiciled in Malta. Applicants must also have no intention of establishing a Maltese domicile within five years of applying.

Separate minimums apply to pensioner categories. Retired pensioners face a €15,000 annual minimum, while UN pensioners face a €20,000 minimum on income other than their exempt UN pension.

What Is the Deadline to Apply Under the Current Rules?

The transitional provisions cover both status granted by December 31, 2026, and applications received by that date. Protection extends until December 31, 2031, although the rules do not specify how those beneficiaries will be treated afterwards.

For applicants eligible for the current €15,000 minimum, this deadline could materially affect their annual tax costs. Applications must be submitted through an authorised registered mandatary.

The changes do not apply to the Malta Permanent Residence Program, which is a separate residence framework and does not automatically establish tax residence.