Malta's New Tax Regime: What Will Change Starting in 2027

Malta will introduce the Individual Tax Program (ITP)—a new special tax regime for foreign residents—effective January 1, 2027. It will consolidate several categories of preferential taxation into a single system and maintain a 15% tax rate on eligible foreign income earned in Malta. At the same time, for some applicants, the minimum annual tax will increase to €35,000, and the minimum value of purchased real estate will rise to €700,000. The new rules are set forth in Legal Notice 195 of 2026 and will take effect on January 1, 2027.

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What tax rules will change in Malta starting in 2027?

Effective January 1, 2027, Malta will consolidate the four existing special tax regimes for foreign residents into a single Individual Tax Programme (ITP). The new rules are introduced by Legal Notice 195 of 2026.

The new system will include:

- Global Residence Programme

- The Residence Programme

- Malta Retirement Programme

- United Nations Pension Programme

These will be replaced by four corresponding categories of special tax status: Global Resident Status, EU, EEA, and Swiss Resident Status, Retired Pensioner Status, and UN Pensioner Status.

The main tax benefit will remain unchanged. Foreign income received in Malta that meets the program’s conditions will generally be taxed at a rate of 15%, with the possibility of applying double taxation avoidance mechanisms. Other income not covered by the preferential regime will, as a general rule, be taxed at a rate of 35%. Foreign income that is not transferred to Malta is generally not subject to Maltese taxation under the program.

At the same time, the ITP significantly tightens financial and administrative requirements. The minimum annual tax, property value thresholds, and application fees are all increasing. The status itself will also no longer be permanent. It will be granted for 5 years with the possibility of renewal, provided all program requirements are met.

We previously reported that Malta is abolishing its “golden passport” program and transitioning to a merit-based citizenship model.

Who will be eligible for Malta’s new tax program?

The Individual Tax Program will be available to foreigners who meet the requirements of one of four categories of special tax status. The conditions depend on citizenship, source of income, and grounds for residence in Malta.

Main categories of participants:

1. Global Resident Status – for third-country nationals who are not citizens of the EU, the EEA, or Switzerland

2. EU, EEA, and Swiss Resident Status – for citizens of the EU, the European Economic Area, and Switzerland

3. Retired Pensioner Status – for retirees who meet specific requirements regarding pension income

4. UN Pensioner Status – for individuals receiving a pension from the United Nations

Program participants must have suitable housing in Malta, health insurance, and demonstrate stable financial resources. They must also comply with tax residency requirements and not spend more than 183 days per year in another jurisdiction.

Separate conditions apply to retirees. For example, under the Retired Pensioner Status, pension income must meet the program’s requirements and constitute the majority of the applicant’s taxable income. For UN Pensioner Status, the rules are tied to payments from the UN system.

Thus, the new system does not create a single universal status for all foreigners. It retains the categorization but brings these categories under a single regulatory framework with standardized procedures and higher financial requirements.

In our previous article, we discussed Cyprus’s 2026 Golden Visa: What We Know About the Tighter Rules.

How much will you have to pay under the new rules?

The most notable change to the Individual Tax Program is the increase in the minimum annual tax. For some foreign residents, it will amount to €35,000 per year, which is significantly higher than the current thresholds.

For Global Resident Status and EU, EEA, and Swiss Resident Status, the minimum tax will rise to €35,000. By comparison, under the current Global Residence Program, the minimum amount is €15,000 per year. In other words, starting in 2027, the financial threshold will more than double.

The main tax rates under the new program will be as follows:

- 15% – on relevant foreign income received in Malta

- 35% – on other income not eligible for the preferential rate

- €35,000 per year – minimum tax for Global Resident Status and EU, EEA, and Swiss Resident Status

- For pensioner categories, separate minimum amounts will apply depending on status

It is important to distinguish between the tax rate and the minimum annual payment. Even if the calculated tax amount at the 15% rate is lower than the established minimum, the program participant will still be required to pay at least the amount specified for their category.

Another important feature of the Maltese system is the “remittance basis” principle. Foreign income that is not remitted to Malta is, under certain conditions, not taxed in the country. It is precisely this model that will continue to be one of the key reasons why Malta remains attractive to wealthy foreign residents, despite the increase in the minimum tax threshold.

Learn more about the best countries to obtain a Golden Visa in Europe in 2026 by following the link.

What real estate is required to participate in the program?

The new rules significantly raise the property-based entry threshold. To participate in the Individual Tax Program, an applicant must use a qualifying property in Malta or Gozo as their primary residence.

Starting January 1, 2027, the following minimum requirements will apply:

1. Property purchase – starting at €700,000

2. Rental – starting at €14,000 per year

At the same time, the new program eliminates the distinction between different minimum thresholds for Malta, Gozo, and certain less expensive areas, which existed under previous schemes. Uniform amounts will apply to all new applicants.

Eligible real estate must remain in the participant’s possession for the entire duration of the status. The sale of such a property, termination of the lease, or subleasing it may result in the loss of special tax status if the program’s requirements are no longer met.

At the same time, purchasing real estate for €700,000 does not in itself guarantee participation in the program. The applicant must also meet financial and compliance requirements, have health insurance, stable and regular income, and pass a verification process to ensure compliance with the established criteria.

In a previous article, we discussed which countries offer the most favorable tax conditions for expats.

How much will it cost to obtain the new status?

Participation in the Individual Tax Program involves more than just the annual minimum tax and real estate expenses. The applicant must also pay a separate administrative fee and use the services of an authorized representative in Malta.

The main costs associated with the application will be as follows:

- €8,500 – one-time, non-refundable application fee

- €2,500 – fee for status renewal

- Additionally – costs for an Authorized Registered Mandatory, health insurance, and document preparation

The new special tax status will be granted for 5 years. Upon expiration of this period, it may be renewed for another five years if the applicant continues to meet the program’s requirements and pays a renewal fee of €2,500.

Unlike previous programs, the status will no longer be effectively indefinite, provided the rules are consistently followed. While the status is in effect, the applicant must retain qualifying real estate, maintain the required health insurance, file tax returns on time, and pay the established minimum tax. The applicant must also maintain representation through an Authorized Registered Mandatory.

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What will happen to applicants who obtain status by 2027?

If a complete application under the current program is submitted on or before December 31, 2026, it may be considered under the old rules. If approved, this status will remain valid until December 31, 2031.

This allows some applicants to temporarily retain lower financial requirements. For example, in the Global Residence Program, the minimum annual tax is currently €15,000, whereas in the new Individual Tax Program, it will increase to €35,000.

At the same time, the application must be complete and meet the requirements of the current program. After January 1, 2027, new applicants will be subject to the ITP rules.

We previously reported that Cyprus has changed its tax reporting rules: who must file a tax return even without income.

Under what conditions can one lose special tax status?

Status under the Individual Tax Programme must be maintained for the entire duration of the programme. Violation of key requirements may result in its termination.

Main grounds for losing status:

- Sale or rental of qualifying real estate

- Lack of required health insurance

- Failure to pay the minimum annual tax

- Failure to file mandatory tax returns

- Loss of representation through an Authorized Registered Mandatory

- Staying in another country for more than 183 days during the year

Therefore, after obtaining this status, it is important not only to pay taxes but also to consistently comply with the program’s property, insurance, reporting, and residency requirements.

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We remind you! Are you planning to invest in real estate under the Golden Visa program? We have already told you which programs in 2025 have become the most profitable for investors. The article compares the UAE, Greece, Turkey, Latvia and Asian countries, the real return on real estate and key risks that should be considered before investing.