Eligibility for Ordinary Residence

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December 03 08:46 2015 by The Editor Print This Article

The Malta Ordinary Residence Scheme is an attractive residence scheme currently available to EU & EEA nationals and nationals of Switzerland, Liechtenstein, Norway and Iceland seeking to transfer their tax residence to a safe, high quality and tax-efficient jurisdiction such as Malta.

Eligibility for Ordinary Residence

  • Nationalities eligible to ordinary residence in Malta include all EU and EEA nationals as well as nationals of Switzerland, Liechtenstein, Norway and Iceland.
  • Applications are approved for non-EU nationals at the discretion of the authorities.
  • Applicants for ordinary residence status need to demonstrate financial independence without being subjected to complex means eligibility testing.
  • Ordinary residents need to evidence their local residential address by purchasing or renting a house or apartment in Malta. This needs to be available at the time of filing of the application.
  • Ordinary residents may live and enter into any business or employment in Malta.
  • Holders of ordinary residence permits are allowed to convert to other available residence schemes.

Remittance Based Tax System for Malta Ordinary Residence

Residents of Malta under the ordinary residency scheme and who are not domiciled in Malta are taxable on a remittance basis. Accordingly, ordinary residents are not taxable on foreign source income not received in Malta and also not taxable on any capital gains arising outside Malta, whether remitted to Malta or otherwise.

Conditions of ordinary residence permits allow resident permit holders to take up residence in Malta and physically live in Malta with the possibility of taking up employment and doing business in Malta.

Tax Rates for Single Taxpayers

Tax Rates (EUR)
Chargeable Income Tax Rate Deduct
0 - 8,500 0 0
8,501 - 14,500 0.15 1,275
14,501 - 19,500 0.25 2,725
19,501 & Over 0.35 4,675

Tax Rates for Married Taxpayers

Tax Rates (EUR)
Chargeable Income Tax Rate Deduct
0 - 11,900 0 0
11,901 - 21,200 0.15 1,785
21,201 - 28,700 0.25 3,905
28,701 & Over 0.35 6,775

Ordinary Residence Permit Application Process

Applications for Ordinary Residence permits are generally processed within a shorter time compared with other residence permit applications.

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