Malta Residence

Ordinary, Long Term and Temporary Residence

Ordinary residence in Malta requires individuals to physically live on the island for a period of six 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. EU/EEA/Swiss nationals and Non-EU nationals may accompany the main applicant 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.

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 nationals may apply for residence in Malta provided that they confirm that they have a regular and stable income and 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 the 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.

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 for Basis Year 2015

Single Rates
Taxable Income € Rate % Deduct €
0 – 8,500 0 0
8,501 – 14,500 15 1,275
14,501 – 60,000 25 2,725
60,001 & over 35 8,725
Married Rates
Taxable Income € Rate % Deduct €
0 – 11,900 0 0
11,901 – 21,200 15 1,785
21,201 – 60,000 25 3,905
60,001 & over 35 9,905
Parent Rates
Taxable Income € Rate % Deduct €
0 – 9,800 0 0
9,801 – 15,800 15 1,470
15,801 – 60,000 25 3,050
60,001 & over 35 9,050

Special Tax Programmes

The Residence Programme Rules 2014

The Residence Programme Rules 2014 confer 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 in 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. Individuals must satisfy a “fit and proper test” in order to be granted a permit under this Programme. Applicants may not spend more than 183 days in any other one 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 registration 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 the residence card.

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 and with any immigration, tax and legal requirements.

The Malta Retirement Programme

The Malta Retirement Programme confers a special tax status to EU/EEA/Swiss 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 in 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 any one foreign jurisdiction in a year and need to satisfy a “fit and proper test”.

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 registration fee amounting to €2,500 is levied by the Malta Government.

Applicants would need to apply for the residence card 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 and with any immigration, tax and legal requirements.

The Global Residence Programme

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 in 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. Apart from holding adequate health insurance covering the EU territory, applicants need to satisfy a “fit and proper test”. Applicants may not spend more than 183 days in any one foreign country in a year.

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 registration fee amounting to €6,000 is levied by the Malta Government.
After being granted such a special tax status, clients can apply for their residence card 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 and with any immigration, tax and legal requirements.

Further information in relation to Malta Residence

Double Taxation Relief

Malta residents are afforded protection by double taxation agreements, which ensure that tax is never paid twice on the same income in different countries. Malta has an extensive network of double taxation treaties. Most treaties are based on the OECD Model Convention, and relief is granted under the credit method whereby a credit for the foreign tax paid is given. Where there is no double taxation treaty, another form of relief from double taxation available under domestic law, namely unilateral relief, largely achieves the same outcome.

Inheritance and Transfer Tax

No death tax or duty is payable in Malta. However, duty on documents and transfers is payable by the heirs of the deceased; the purchaser of real estate situated in Malta, and upon the purchase of shares in Malta companies.

However, no such duty is payable on share transfers effected by shareholders in or by trading companies which have business interests to the extent of more than ninety per cent outside Malta. Likewise, an exemption from duty on share transfers in holding companies exists where more than half of the ordinary share capital, voting rights and rights to profits are held by persons who are not resident in Malta. Subject to certain exceptions, duty is due at the rate of five per cent in the case of real estate, and two per cent in the case of shares.

Purchase of Real Estate

Non-residents may freely purchase one property in Malta, subject to obtaining an AIP permit. This restriction does not apply to properties in Special Designated Areas and, in the case of EU citizens who have not been resident in Malta for at least five continuous years, to property which is to serve as their primary residence. On the other hand, EU citizens who have been resident in Malta for at least five continuous years may purchase any number of properties they wish. Also excepted is the acquisition of immovable property by an EU national for the conduct of one’s business activity or for the supply of services by such person.

Education

Malta offers different types of schools, namely state schools, private schools and Church schools. Since Malta is a bilingual country, both English and Maltese are spoken in the classrom and outside. The Maltese education system mostly follows the British curriculum. School is compulsory up to the age of 16. One can also study at the University of Malta or other Colleges which offer a vast range of courses.

Healthcare

Malta has one main public hospital offering the full range of hospital services. In addition, there are a number of private hospitals and clinics offering different services by general practitioners, specialist doctors and dentists, amongst others. There are also Government health centres providing general practitioner and nursing services and also specialised health services, such as immunisation and speech therapy.

Why take up residency in Malta?

  • Rich culture and history dating back 7000 years
  • Mild climate which makes it pleasant to live in all year round
  • Low crime rate, thus making it a relatively safe place to live in
  • English is an official language with Italian and French being widely spoken
  • Moderate cost of living
  • Advantageous tax rates
  • Excellent telecommunications
  • Politically and economically stable
  • Has been voted as one of the best places to retire on Earth!

 

For further information about Residence in Malta please download our brochure.
For further information about Purchasing Property in Malta please download our brochure.

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