Malta Residence

Ordinary, Long Term and Temporary Residence

Ordinary residence in Malta requires individuals to physically live on the island for a period of 3 months or more. EU/EEA/Swiss nationals may apply as being economically self-sufficient by proving that they are financially stable or on the basis of employment if an individual works in Malta as an employee or is self-employed. As dependants, EU/EEA/Swiss nationals and Non-EU nationals may accompany the main applicant being an EU national provided that they prove that they are financially dependent on the latter. One may also apply on the basis of education if an individual is studying in Malta. If the student is under-age, his/her legal guardian can apply for a residence permit to accompany him/her upon confirming that he/she has stable and regular income.
EU/EEA/Swiss nationals and their family members may apply for permanent residence upon completing a continuous five-year period of legally living in Malta. Applicants must not have absented themselves from Malta for more than six months a year.
Non-EU nationals may apply for a residence permit if they will be working in Malta or upon opening a business in Malta provided certain criteria are satisfied.Applicants earning an annual gross salary of at least €30,000 may apply under the Key Employee Initiative (KEI) which is a fast-track employment licence procedure.
Non-EU nationals may apply for long-term residence if they have been legally residing in Malta for five continuous years. Applicants must not have absented themselves from Malta for more than six consecutive months in any given year of the said five-year period and further must not have been away for more than a total of ten months throughout this five-year period.
Non-EU nationals may apply for a residence permit if they will be studying in Malta. If the student is underage, his/her legal guardian can apply for a residence permit to accompany him/her upon confirming that he/she has stable and regular income.
Foreign partners of EU/EEA/Swiss nationals may apply for residence in Malta provided that they confirm that the relationship has existed for at least two years.
Non-EU nationals who reside legally in Malta may apply for the reunification of their family members, namely their spouse being 21 years of age or over and minor unmarried children under the age of 18.
A temporary residence permit may be granted to Non-EU nationals to reside in Malta for more than three months on a case by case basis, in particular circumstances.

Income tax

Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on income and capital gains arising in Malta, and on income arising outside Malta which is received in Malta. No tax is chargeable on foreign capital gains even if such gains are received in Malta. Personal income tax is charged at progressive rates of tax up to a maximum of 35 per cent, as illustrated by the following tables:

Tax rates applicable to single persons (and to married persons who opt for a separate computation)

BASIS YEAR 2020

Chargeable income (€) Tax rate (€)
0 – 8,100 0%
9,101 – 14,500 15%
14,501 – 19,500 25%
19,501 – 60,000 25%
60,001 & over 35%

Tax rates applicable to parents who, subject to certain conditions, maintained a child under their custody during the year.

BASIS YEAR 2020

Chargeable income (€) Tax rate (€)
0 – 10,500 0%
10,501 – 15,800 15%
15,801 – 21,200 25%
21,201 – 60,000 25%
60,001 & over 35%

Tax rates applicable to married couples.

BASIS YEAR 2020

Chargeable income (€) Tax rate (€) Deduction
0 – 12,700 0% 0
12,701 – 21,200 15% 1,905
21,201 – 28,700 25% 4,025
28,701 – 60,000 25% 3,905
60,001 & over 35% 9,905

Special Tax Programmes

The Residence Programme (TRP)

The Residence Programme confers a special tax status to EU/EEA/Swiss nationals upon satisfying certain conditions, including acquiring a property for not less than €275,000 or renting property for not less than €9,600 per annum. Should the property be situated in Gozo or the South of Malta, the purchase value should not be less than €220,000 and the rental value should not be less than €8,750 per year.
Applicants must be in receipt of stable and regular resources and must hold adequate health insurance covering the EU territory. Applicants may not spend more than 183 days in a calendar year in any one other foreign jurisdiction.

A 15 per cent rate of tax is charged in respect of foreign income remitted to Malta, with the possibility of claiming double tax relief. The minimum annual tax stands at €15,000 after claiming any applicable double tax relief. A one-time administrative fee amounting to €6,000 is levied by the Malta Government.

After being granted such a special tax status, one would be in a position to apply for a residence permit.
An application under this programme may only be submitted through an Authorised Registered Mandatory. EMD, as an Authorised Registered Mandatory, may assist you with your application for residency under this Programme as well as with any tax and compliance obligations related to the Programme.

The Malta Retirement Programme (MRP)

The Malta Retirement Programme confers a special tax status to EU/EEA/Swiss nationals and Non-EU nationals in receipt of a pension constituting at least 75% of their chargeable income. Applicants are required to acquire property for not less than €275,000 or rent property for not less than €9,600 per annum and to have adequate health insurance covering the EU territory. Should the property be situated in Gozo or the South of Malta, the purchase value should not be less than €220,000 and the rental value should not be less than €8,750 per year. Applicants may not spend more than 183 days in a calendar year in any one foreign jurisdiction. Beneficiaries must spend in excess of 90 days per calendar year in Malta, averaged over a period of 5 years.

A 15 per cent rate of tax is charged in respect of foreign income received in Malta, with the possibility of claiming double tax relief. The minimum annual tax under this programme stands at €7,500, with an additional €500 per dependant and special carer, if any. A one-time administrative fee amounting to €2,500 is levied by the Malta Government.

Applicants can apply for the residence permit on the basis of their retirement in Malta.

An application for special tax status may only be submitted through an Authorised Registered Mandatory. EMD, as an Authorised Registered Mandatory, may assist you with your application for residency under this Programme as well as with any tax and compliance obligations related to the Programme.

The Global Residence Programme (GRP)

The Global Residence Programme confers a special tax status to Non-EU nationals in receipt of stable and regular resources. Applicants need to acquire a property for not less than €275,000 or rent a property for not less than €9,600 per annum. Should the property be situated in Gozo or the South of Malta, the purchase value should not be less than €220,000 and the rental value should not be less than €8,750 per year. Applicants must hold adequate health insurance covering the EU territory. Applicants may not spend more than 183 days in a calendar year in any one foreign country.

Foreign income received in Malta is taxed at a 15 per cent rate, with the possibility of claiming double tax relief. The minimum annual tax stands at €15,000 after claiming any applicable double tax relief.

A one-time administrative fee amounting to €6,000 is levied by the Malta Government.

After being granted such a special tax status, beneficiaries can apply for their residence permit on this basis.

An application for special tax status may only be submitted through an Authorised Registered Mandatory. EMD, as an Authorised Registered Mandatory, may assist you with your application for residency under this Programme as well as with any tax and compliance obligations related to the Programme.

For further information about the above Special Tax Programmes feel free to contact us on +35622030000 or send us an email on privateclients@emd.com.mt.

The Malta Residence and Visa Programme (MRVP)

The Malta Residence and Visa Programme is an immigraton programme intended for Non-EU/EEA/Swiss nationals. Applicants need to acquire a property for not less than €320,000 or rent a property for not less than €12,000 per annum. Should the property be situated in Gozo or the South of Malta, the purchase value should not be less than €270,000 and the rental value should not be less than €10,000 per year. The property is to be retained for a minimum period of 5 years from the date of issue of the certificate confirming MRVP status. Apart from holding adequate health insurance covering the EU territory, the beneficiary must also make an investment having an initial investment value of €250,000.The main applicant must hold the investment for at least 5 years from the date of issue of the certificate.

The applicant must be in receipt of stable and regular resources which are sufficient to maintain himself/herself and his/her dependants. He/she must provide an affidavit declaring that from the date of the application onwards, he/she eitherhas an annual income of not less than €100,000 arising outside of Malta or capital of not less than €500,000.
A €30,000 contribution fee is payable to the government of Malta. This covers the main applicant, spouse and children. A one-time non-refundable administrative fee of €5,500 is levied by the Malta Government. This is deducted from the €30,000 contribution.
An MRVP beneficiary is not considered as tax resident in Malta unless he/she spends more than 183 days in Malta. Should the beneficiary spend more than 183 days in Malta he/she would be considered as ordinary resident but not domiciled in Malta, and hence taxed on a remittance basis.

An application for MRVP status may only be submitted through an Approved Agent. EMD, as an Approved Agent, may assist you with your application for residency under this Programme as well as with any tax and compliance obligations related to the Programme.
For further information about the Malta Residence and Visa Programme feel free to contact us on +35622030000 or send us an email on privateclients@emd.com.mt

 

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