Ordinary Residence

The Residence scheme is available to both EU & EEA Nationals and nationals of Liechenstein, Norway, Iceland and Switzerland who have the intention of transfering their tax residence in Malta.

The requirements for the Ordinary Residence are that the applicant for this scheme status is financially stable and independent without being a financial burden on the country.  Residents are required to rent or buy a property.  They are free to enter into business or employment in Malta.  All holders of the Ordinary Residence permits are allowed to convert to other residence schemes offered by the Government of Malta.

The current Thresholds are as follows: Married couples minimum capital required €23,300 and for single €14,000.

All applications for this residence scheme are normally processed within a few weeks.

 

Non EU & EEA Nationals

Employment and Self Employed

Incase of a Non EU &  EEA Nationals employment is possible however an employment license is required inorder to work in Malta.  There are various sectors where one could find employment such as pharmaceutical companies, IT sector and Financial services.

Self employment is also possible as long as the applicant meets one of the following requirements.

(i) A minimum investment of €100,000 (however this amount must not include salaries, rental fee etc but must be for fixed assets such as property and equipment).

(ii)An overseas reputable and respected compnay seeking to operate and open a branch in Malta and with the intention of employing people.

(iii) A company director approved by the Malta Enterprise.

TEMPORARY RESIDENCE

Temporary Residents permit is normally grannted to foreign nationals who enter Malta and their stay does not exceed more than 183 days in a calendar year and has no intention of residing in Malta permanently.  In such cases no tax is paid on foreign income he can repatriate however he will be taxed on any income and capital gained in Malta.

LONG TERM RESIDENCE

This residency shceme is for those individuals whose stay will exceed 5 years, however applicants must have not left Malta for more than 10 months in the 5 year period.

All third Country Nationals who obtain a long-term residence can reside in Malta for more than 3 months only due to employment or as a self employed activity.

INHERITANCE TAX

There is no inheritance tax in Malta.  However if death occurs, the beneficiary will have to pay 5% tax on the value of the estate.  If the property is jointly owned and one of the spouses passes away, the 5% is levied on half the value of the property.

All foreign residents are taxed on their income sourced in Malta and resident citizens of Malta are taxed on their worldwide income as follows

Single Rates Thresholds

€ 0 – €8,500 – 0%
€ 8,501 – € 14,500 – 15%
€ 14,501 – € 19,500 – 25%
€ 19,501 plus – 35%

Married Rates Thresholds

€ 0 – €11,900 – 0%
€ 11,901 – € 21,200 – 15%
€ 21,201 – € 28,700 – 25%
€ 28,701 plus – 35%

There are various new Tax-related incentives for individuals working in the financial sector, gaming industries and pharmaceutical sectors.

For further information and details kindly contact our office.