Malta’s individual tax incentives effective 01 January 2027: A new unified framework for global residents, EU/EEA/Swiss residents, retirees, and UN pensioners

Resident non-domiciled individuals benefit from Malta's source-and-remittance basis of taxation. English and Maltese are official languages, with legislation available in both; and Malta has an established infrastructure of professionals accustomed to assisting international residents.

Malta's Individual Tax Programme (ITP) Rules, 2026 (introduced in Legal Notice 195 of 2026) consolidate several legacy tax residence and retirement schemes into a single unified framework, effective 01 January 2027. Malta’s core preferential tax treatment remains, but the new programme introduces higher financial thresholds, one national qualifying-property standard, a defined five-year term, and revised administrative fees.

1) Same flat tax rate of 15%1) Same flat tax rate of 15%

Under the new ITP, qualifying foreign-source income received in Malta continues to benefit from a 15% rate, subject to the relevant minimum annual tax. Maltese-source income is generally taxable at 35% under the programme rules. Foreign-source income not received in Malta is outside the Malta tax charge under the remittance basis, while foreign-source capital gains generally remain outside Malta tax even if the proceeds are remitted to Malta.

2) Increase in minimum Malta tax

The minimum Malta tax payable under several categories is:

Global resident status	EUR 35,000
EU/EEA/Swiss resident status	EUR 35,000
Retired pensioner status	EUR 15,000
UN pensioner status	EUR 20*

*Separate rules apply to qualifying UN pensions.

3) New national qualifying-property requirement

New applicants will generally need to maintain a qualifying residence in Malta by either purchasing residential property valued at least EUR 700,000, or renting a qualifying residential property at a rate of at least EUR 14,000 per year.

4) Introduction of a defined duration

Special tax status under the ITP is generally granted for an initial five-year period and may be renewed for further five-year periods, provided the applicable conditions continue to be satisfied.

5) Application fee5) Application fee

The new application fee is EUR 8,500 and the renewal fee is EUR 2,500. This moves the programme towards a clearer cycle of application, continuing compliance, and renewal. 

Any special tax status granted on or before 31 December 2026 continues under the current GRP, TRP, MRP or UN Pensioners Programme terms until 31 December 2031. From 01 January 2027, all new applications will be subject to the Individual Tax Programme Rules, 2026.

As a multi-disciplinary team active in this field for more than twenty years, the staff at DAL Advisory Ltd can assist in coordinating the corporate and practical aspects of establishing a Malta base, working alongside authorised Malta tax, legal, immigration, and other professional advisers where required.

---

Roxanne Galea is an ACCA member and an associate member of the Malta Institute of Taxation. She has been with DAL Advisory since 2018, assisting clients to use their Malta platform to integrate a variety of international business, and focusing mainly on client management, accounting, and tax advice. Roxanne has been an active participant in GGI conferences.