RESIDING PERMANENTLY IN MALTA

A pleasant warm climate and hospitable English speaking population, rich culture and a relatively low crime rate together with a stable and democratic political situation are definitely a rare and irresistible combination for many people intending to settle or retire indefinitely in Malta or Gozo. A residency permit in Malta entitles its holder to very favorable fiscal incentives and benefits, as the facility to travel into and out of Malta, as and when desired, without the requirements of other formalities.

Conditions of Residence

A permanent resident must have an annual income equivalent to LM10, 000 (€24,000) or a capital equivalent to LM150, 000 (€350,000). The capital may include a property purchased in Malta

  1. Remit annually into Malta an income equivalent to €13,900 in his own respect and €2,300 in respect of each of his dependants
  2. Take up residence by not later than 1 year from the issue-date by either purchasing a property, or by renting for not less than €4, 200 per annum
  3. Undertake not to exercise any occupation or profession, hold any appointment, seek employment, or engage in any form of business in Malta *
  4. Undertake not to participate in political activities *
  5. Dependants may remain in Malta until they reach their 21st Birthday

EU Citizens and Permanent Residency

The scheme did not change as a result of Malta's EU membership. Certain benefits are superseded since EU citizens automatically qualify for a residency permit. However EU citizens are required to inform the Immigration Department, Police Headquarters, Floriana if they intend to stay in Malta for more than three months. Moreover Proof of Income and health cover are required by the authorities to ensure the resident will not be a burden on the country.

Other conditions attached to the scheme, such as the condition for applicants not to engage in work or political activities are being reviewed.

EU citizens who have been residing in Malta for a period of 5 years will be able to buy a second or more property in Malta. Following the 5 year period, they will then have all rights associated with being a Maltese citizen.

Brief Overview of Advantages

  • A Flat rate of only 15% income tax on remitted income, subject to a minimum tax of Lm1, 800 (€4, 193) per annum.
  • Exemption from customs duty/VAT on Household and personal effects, furniture and domestic articles.
  • Exemption from customs duty/VAT on one private motor vehicle.
  • Repatriation of capital and income.
  • No local or council taxes are payable.
  • No death duties are payable in Malta (although transfer duty is charged on immovable property)...