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On 14 July 2026, the Maltese Government published Legal Notice 195 of 2026, introducing the Individual Tax Programme Rules, 2026 (the "Rules"). The new rules, which come into force on 1 January 2027, represent a reform of Malta's residence-based tax regimes by consolidating the existing programmes (Global Residence Programme, The Residence Programme, the Malta Retirement Programme and the United Nations Pensions Programme) into one legislation.
Key Considerations
The new legislation streamlines the existing programmes under one set of Rules. However, the core principles of the existing regimes remain largely intact. Eligible beneficiaries will continue to benefit from:
(i) a 15% tax rate on qualifying foreign income remitted to Malta; and
(ii) immigration residence rights allowing for an unrestricted period of residence in Malta and visa-free travel within the Schengen Area.
What changes?
The new legislation provides for the following main changes:
(i) an increase in the annual minimum tax liability to €15,000 for retired pensioners, €20,000 for beneficiaries of the UN pension programme and €35,000 for individuals under the Residence Programme and Global Residence Programme;
(ii) an increase in qualifying property thresholds to €700,000 for acquired property and €14,000 for leased property;
(iii) a five-year validity period, which may be renewed subject to an administrative fee; and
(iv) an increase in the administrative fee to €8,500.
Transitional measures
Beneficiaries under one of the existing programmes, as well as individuals whose special tax status is granted by 31 December 2026, should continue to benefit from the current (separate) rules until 31 December 2031.
How can BDO help?
BDO can assist individuals considering relocating to Malta, as well as existing beneficiaries of the current residence tax programmes, by going through their specific circumstances and discussing the impact (if any) of the new rules, particularly on their tax position from 1 January 2027.