Malta is introducing a new Individual Tax Programme (ITP) which will come into effect on 1 January 2027.
The new programme brings together Malta’s existing special tax residence schemes into a single framework and introduces significant changes to the minimum tax liability, qualifying property values, application fees and duration of tax status.
For anyone considering Malta as a place of residence, these changes are important, particularly for those who are also considering purchasing or renting property in Malta or Gozo.
Key Changes at a Glance
| Current Framework | From 1 January 2027 | |
|---|---|---|
| Minimum tax – Global Resident / EU, EEA & Swiss | €15,000* | €35,000 per year |
| Minimum tax – Retired Pensioner | Existing rules | €15,000 per year |
| Minimum tax – UN Pensioner | Existing rules | €20,000 per year |
| Minimum qualifying property purchase | From €220,000 / €275,000 depending on location | €700,000 |
| Minimum qualifying annual rent | From €8,750 / €9,600 depending on location | €14,000 |
| Application fee | From €5,500 / €6,000 | €8,500 |
| Tax status period | Existing framework | 5 years, renewable |
| Renewal fee | – | €2,500 |
31 December 2026: Important transitional deadline. Applications under the existing programmes received by this date may benefit from transitional arrangements.
What is the Individual Tax Programme?
The new Individual Tax Programme consolidates Malta’s existing special tax residence frameworks into one programme.
It covers four categories of special tax status:
- Global Resident Status
- EU, EEA & Swiss Resident Status
- Retired Pensioner Status
- UN Pensioner Status
The programme is intended for individuals who satisfy the relevant eligibility, residence, property, financial and other requirements.
The 15% Tax Rate Remains
An important feature of Malta’s special tax framework remains unchanged.
Qualifying beneficiaries may generally benefit from a 15% tax rate on foreign-source income received in Malta, subject to the applicable rules and double-taxation relief.
Different taxation may apply to other types of income, and the applicable minimum annual tax must still be satisfied.
The new minimum annual tax liabilities are:
| Special Tax Status | Minimum Annual Tax |
|---|---|
| Global Resident Status | €35,000 |
| EU, EEA & Swiss Resident Status | €35,000 |
| Retired Pensioner Status | €15,000 |
| UN Pensioner Status | €20,000 |
These minimum amounts represent a significant change for new applicants under the relevant categories.
Property Requirements Are Increasing
One of the most significant changes for prospective property buyers and renters is the increase in the minimum value of qualifying property.
Under the new programme, a qualifying property must generally meet one of the following requirements:
- Property purchase: minimum purchase value of €700,000
- Property rental: minimum annual rent of €14,000
The previous distinction between Malta and Gozo, and certain designated locations under some of the existing schemes, is removed for the new programme.
This means that the €700,000 purchase threshold and €14,000 annual rental threshold apply to qualifying properties in Malta and Gozo under the new framework.
Five-Year Tax Status
Under the new programme, special tax status will be granted for an initial period of five years.
The status may subsequently be renewed for further five-year periods, subject to continued compliance with the relevant requirements. A €2,500 renewal fee will apply.
This is a change from the structure of the existing programmes, which generally do not operate on the same fixed five-year term.
Application Fee
The new programme introduces a non-refundable application fee of €8,500.
A renewal fee of €2,500 applies for each subsequent five-year renewal period.
An Important Date: 31 December 2026
For anyone already considering applying under one of Malta’s existing special tax residence programmes, 31 December 2026 is an important date.
The transitional provisions provide that existing beneficiaries, together with applications under the existing programmes received by 31 December 2026, can continue to be governed by the existing programme rules until 31 December 2031, subject to the applicable conditions.
This creates an important transitional period between the existing programmes and the new Individual Tax Programme.
Considering Malta before the end of 2026?
If you are already considering relocating to Malta and acquiring property as part of your residence plans, it may be worthwhile to understand which framework could apply to you and whether the transitional provisions are relevant to your circumstances.
What Does This Mean for Property?
The new rules make the relationship between property selection and tax residence planning particularly important.
From January 2027, applicants under the new programme will generally need to maintain a qualifying property meeting the applicable €700,000 purchase or €14,000 annual rental threshold.
For prospective purchasers, this means that the choice of property may form an important part of the overall planning process.
At Belair Property, we can assist clients in identifying properties across Malta and Gozo that may meet the relevant property requirements and help them understand the range of available options.
Looking for a Qualifying Property in Malta?
Whether you are considering buying or renting, Belair Property can help you explore suitable residential property across Malta and Gozo.
Speak to our team about the new property thresholds and the latest opportunities available.
Important Notice
The information contained on this page is provided by Belair Property for general information purposes only and is based on the Individual Tax Programme Rules, 2026 (Legal Notice 195 of 2026), which come into force on 1 January 2027.
This information does not constitute tax, legal, immigration or financial advice and should not be relied upon as a substitute for professional advice. Eligibility and the application of the rules depend on individual circumstances and the applicable legislation and guidelines.
Prospective applicants should obtain independent advice from an appropriately qualified tax or legal adviser before making any decisions.
Source: Individual Tax Programme Rules, 2026 – Legal Notice 195 of 2026, published by the Government of Malta on 14 July 2026.
