Permanent Residence

Foreigners who decide to take up residence in Malta under the Residents Scheme Regulations (known as permanent residence permit holders), may benefit from a favourable income tax rate of 15%. They may also travel into and out of Malta as and when desired without additional formalities. Permanent residence permits are valid for an indefinite period as long as each year certain conditions are satisfied.
The principal benefits on becoming a permanent residence permit holder include:

• Income tax rate at 15% with a minimum tax liability, after double taxation relief, of Euro 4,192 per annum. Tax is only charged on income and capital gains arising in Malta and on overseas income remitted to Malta.
• No tax on capital gains arising out of, and remitted to, Malta.
• Relief from double taxation by virtue of Malta’s treaty network or through unilateral provisions.
• No inheritance tax.
• Free repatriation of funds.
• No duty/VAT on importing household goods and furniture.

A permanent residence permit holder must have an annual income of at least Euro 23,000 or a proven capital of at least Euro 349,000. This amount does not have to be brought into Malta, except for the amount needed to purchase or lease property and live in Malta.

The minimum annual income to be remitted to Malta by a permanent residence permit holder is Euro 13,950 plus Euro 2,300 for each dependent, including the spouse.

Permanent residence permit holders are required to acquire or lease immovable property in Malta, and our firm may assist them throughout the whole process relating to the purchase or lease of property.

Permanent residence permit holders must produce evidence that within twelve months of taking up residence in Malta, he/she has acquired property for at least the prescribed minimum value (minimum values are linked to an index and are thus reviewed periodically), or has rented/leased premises for not less than Euro 4,200 per annum.