Malta Individual Tax Programme (ITP) | 2027 Residence Rules

Jul 30, 2026 | News

Malta Introduces the Individual Tax Programme

From 1 January 2027, Malta’s residence tax framework will be restructured through the introduction of the Individual Tax Programme (ITP) Rules. The new legislation replaces the existing standalone special tax regimes with a single legislative framework governing the Global Residence Programme (GRP), The Residence Programme (TRP), the Malta Retirement Programme (MRP) and the United Nations Pensions Programme (UNPP).

The reform modernises Malta’s residence tax framework while preserving many of the features that continue to make the jurisdiction attractive to internationally mobile individuals, retirees and families.

What Remains Unchanged

Despite the legislative reform, several key benefits remain in place, including:

  • A preferential 15% tax rate (or, in certain cases, a full exemption) on qualifying foreign-source income remitted to Malta.
  • Residence rights for beneficiaries and qualifying dependants, allowing them to reside in Malta for an unrestricted period, subject to continued compliance with the applicable rules.
  • Visa-free travel within the Schengen Area.

Key Changes Under the Individual Tax Programme

The new framework introduces a number of important changes, with certain requirements varying depending on the programme concerned. The principal amendments include:

  • A five-year validity period for special tax status, renewable for further five-year periods upon payment of a €2,500 administrative fee.
  • A revised application fee of €8,500.
  • Higher qualifying property thresholds, requiring either:

    • the purchase of residential property with a minimum value of €700,000, or
    • the lease of residential property at a minimum annual rent of €14,000.
  • Higher minimum annual tax liabilities, including:

    • €35,000 for beneficiaries under the Global Residence Programme and The Residence Programme;
    • €15,000 for beneficiaries under the Malta Retirement Programme; and
    • €20,000 for beneficiaries under the United Nations Pensions Programme.
  • Changes to certain eligibility and qualifying conditions.

Transitional Provisions

The legislation includes important grandfathering provisions for individuals wishing to benefit from the current framework.

Existing beneficiaries will continue to be governed by the current rules until 31 December 2031, provided they continue to satisfy the applicable programme requirements.

In addition, applications submitted before 31 December 2026 may benefit from the transitional provisions only where the application has been received and confirmed as complete by the Commissioner on or before that date. The mere submission of an application does not secure grandfathering. Applications that are incomplete, or are confirmed as complete after 31 December 2026, will be assessed under the new Individual Tax Programme rules.

What This Means for Prospective Applicants

Although Malta’s preferential 15% tax rate remains unchanged, the new framework significantly increases the financial commitment required to obtain and maintain special tax status.

Individuals considering relocating to Malta, retiring to Malta or applying under one of Malta’s residence programmes should begin planning well in advance to ensure there is sufficient time for their application to be prepared, submitted and confirmed as complete before the end of 2026, where they wish to benefit from the current rules.

How We Can Help

The introduction of the Individual Tax Programme marks an important development in Malta’s residence tax landscape. Understanding which programme is most appropriate, assessing eligibility, coordinating immigration and tax requirements, and navigating the transitional rules requires careful planning.

We advise individuals, retirees, internationally mobile families and high-net-worth individuals on Malta’s residence and special tax programmes. Whether you are considering relocating to Malta, reviewing your eligibility under the new framework or planning your application before the end of 2026, we can provide practical, tailored advice to help you identify the most suitable route for your circumstances.