Malta Residency
Permanent Residence Permits
As far back as the 1960's, Malta has tried to attract foreigners, who would be able to meet certain financial and property conditions, to settle on the Islands. The main reason has always been one linked to an economic objective. The settlers would bring foreign exchange to the Island and their spending would generate income into the economy.
Expatriate Tax and Residency
Malta has two residency schemes which encourages foreigners to take up residence here. These schemes are supported by an attractive tax structure, amongst other advantages. Foreigners residing in Malta are not taxed on their worldwide income but only on any Maltese source income and on foreign income remitted to Malta.
Foreigners becoming resident under the Residents Permit Regulations are taxed at a flat rate of 15%. Those becoming resident under the Ordinary Residents Scheme are taxed by the normal rates of income tax. There are no net worth or real estate taxes and whilst a tax on capital gains arising from the sale of real estate in Malta does exist, this does not apply to the sale of one's main residence if the property is owned and occupied for at least three years.
| Details | Permanent Residence Scheme | Ordinary Residence Permit |
| Minimum Stay Requirement | None | None |
| Minimum Annual Tax | €4,200 | None |
| Tax on World Wide Income |
None (If not remitted to Malta) |
None (If not remitted to Malta) |
| Property Purchase |
Not Required Min. €4,200 annual rent) |
Not Required Min. €4,200 annual rent) |
| Investment | None | None |
| Inheritance/Wealth Tax | None | None |
| Tax Rates | 15% on remitted income (Min. €4,200) | Low Tax on remitted income |
| Travel Requirements | None within Schengen Area | None within Schengen Area |
Various Permanent Residence Schemes have been launched in the past in this respect. The persons, who satisfy the relative conditions, were/are granted a residence permit that entitles them to remain indefinitely on the Island, precluding them, however, from exercising any kind of work activity in Malta.
The Inland Revenue Department administers the permanent residence permits http://www.ird.gov.mt/info/residentscheme.asp
Temporary ResidenceFor Third Party Nationals (Non EU/EEA Nationals) The following link Uniform Residence Permits for Third Country Nationals.pdf and Legal Notice 278 of 2006.pdfare applicable for Non EU/EEA Nationals. For English version refer to Pages 16-30. EU Nationals Please refer to http://www.doi.gov.mt/EN/legalnotices/2007/07/LN 191.pdf For English version refer to Pages 23-43. The Citizenship and Expatriate Affairs Department is responsible for all the administrative tasks related to temporary residence in Malta. |
ADVICE
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