Taking up Residence in Malta

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December 22 11:22 2015 by The Editor Print This Article

Planning to take up a residence in Malta?

Malta holds many attributes that make it an ideal place for one to live in. these include its idyllic weather, charming atmosphere, safe environment, population and language.   Apart from this it also holds an advantageous tax regime and competitive cost of living. EU and NON-EU citizens have different rights when residing in Malta. When one intends to reside in Malta for more than 3 months, he or she is obliged to apply for a residence permit. This includes completing n application form and filing it personally, together with relevant supporting documentation along with the principal immigration officer. An individual holding a Residence Permit is taxed on income arising or remitted to Malta at the normal progressive income tax rates (current maximum rate is 35%) applicable to every Maltese resident person on his or her chargeable income.
 
There are different kinds of residence: Ordinary Residence, Long-Term Residence, Temporary Residence or Permanent Residence Permits.
 
The Ordinary Residence in Malta requires individuals to physically live on the island for a period of six months or more. The transfer of one’s residence from a high-tax jurisdiction to a lower tax overseas country is available to both EU/EEA and non-EU/EEA citizens. There is no minimum value property requirement for non-residents seeking to obtain ordinary residence in Malta, unless there is the need for an Acquisition of Immovable Property (AIP) permit, which applies in specific circumstances. e attractive.
Non-EU citizens applying for an ordinary residence may require an employment license for them to work in Malta. This is granted upon satisfying certain criteria.
 
The Long-term residence status may be granted to individuals who have been legally residing in Malta for five continuous years. The term “continuous” means that such individuals 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 this must not have been absent from Malta for more than a total of ten months throughout the five year period.
 
 
An individual staying in Malta for a temporary stay of no more than 183 days in a calendar year, shall not be taxed in Malta on their foreign income and gains, whether these are remitted to Malta or otherwise. They are liable to tax in Malta solely on Maltese sourced income and capital gains.
 
Malta offers a number of incentives to foreigners interested in obtaining an indefinite Malta Residence Permit such as an attractive rate of tax (15%), repatriation of capital and income or no death duties payable. Applications for a permanent resident certificate must be made on the appropriate prescribed form, must be accompanied by a sort of specific documents and the applicant must follow certain annual requirements. The processing of applications under the scheme normally takes about 3 months.