Residence in Malta
Permanent Residence Scheme
Malta today offers non-Maltese persons the possibility of acquiring Permanent Residence Status. Persons of any nationality are eligible for Permanent Residence Permits with no differentiation whatsoever.
Why choose Malta?
Firstly, the English speaking population makes integration and communication easy; all official documentation is written in English; laws are written in English and Maltese; commercial and business relationships are generally speaking carried out in English. There are also private English-speaking schools, which offer a high level of education; the University is open to children of Permanent Residents. There are also a number of private hospitals offering a very high quality medical service; Malta has been ranked 5th in the world by the World Health Organization for medical services and facilities.
Secondly, the standard of living is high, comparable to other European countries of the Mediterranean region whereas the cost of living is generally cheaper than in Europe . It is therefore possible to live a better life with a lesser expenditure. Life is more laid back than in Europe , and particularly in Gozo the pace of life is slow and relaxed and the charm of this little island is difficult to get away from. There is a very low crime rate and foreigners are very rarely targeted, provided common sense is used, as in all situations. While drug abuse is on the increase, it is very limited still and confined to one or two areas, but in general this is not a problem. Children can be very safely brought up and there is a general care and awareness given by the people to children and elderly persons, particularly where foreigners are concerned. Most foreigners who come to live in Malta are surprised at the help and attention they are given by the local population.
Third, the climate is a particular attraction to persons coming from the colder regions of the world.
Fourth, the taxation level imposed on Permanent Residents is very advantageous. The low taxation rate, coupled with a long list of double taxation treaties that Malta has negotiated with other countries, makes residence in Malta a very attractive solution for high worth individuals. Tax at 15% is only levied on income brought into Malta and global income is not taxed in any way.
Favourable rate of tax
A person having a Permanent Residence Permit (permanent resident) is chargeable to tax at a flat tax rate of 15% on all income (less tax rebates as applicable) sourced in Malta, or received in, or remitted to, Malta from foreign sources, subject to a minimum annual tax liability of €4,150 (net amount after taking into account any double taxation relief). Any remittance of capital or any capital gains remitted to Malta are not chargeable to any tax in Malta.
No death duties are payable in Malta. Duty is however charged on the transfer of immovable property situated in Malta and on any shares owned in a locally registered company (excluding shares in companies listed on the Malta Stock Exchange).
Who may apply for the scheme?
Any foreigner, of whatever nationality, may submit an application under the scheme provided that specific conditions are satisfied.
What are the conditions for eligibility?
An individual will be eligible subject to the following conditions:
- Such individual must have an annual income equivalent to €23,000 arising outside Malta or capital equivalent to €349,000;
- Such individual must remit to Malta an income equivalent to €13,950 annually and €2,330 in respect of each dependant (where applicable).
Dependent, in terms of the Permanent Residence Scheme means:
- The spouse;
- Children under twenty-one (21) years of age;
- A parent or grandparent who is financially dependent on the applicant.
Approval and issuance of certificate
Within thirty (30) days of approval of the application, the applicant must effect payment of €4,150 being the minimum liability for the first (1st) year of residence in Malta. This amount will be available as a credit against the applicant‘s actual tax liability for that year. The permanent residence certificate will be issued upon payment of the aforesaid amount within the stipulated time period.
Once in possession of a certificate the holder:
- is required to take up residence by not later than one (1) year from the issue date of the certificate. The holder has to complete a prescribed document which has to be presented together with identification documents to the Department of Inland Revenue, Expatriates Division, within fifteen (15) days of arriving in Malta. Should the applicant not take up residence within twelve (12) months from date of issue of the certificate and such certificate be withdrawn, the amount of €2,985 from the amount of €4,150 paid will be refunded.
- must either purchase immovable property valued at not less than €116,000 (€69,000 in the case of an apartment), or lease/rent immovable property for not less than €4,150 per annum within twelve months of taking up residence in Malta.
A permanent resident will be required to complete a tax return and specific attachments to confirm that he/she has fulfilled all the conditions attaching to the permit, in respect of each calendar year in which he was resident in Malta under the scheme.
Fides Corporate Services can assist any potential applicants throughout the application process and can provide various other related services in Malta. For further information please feel free to contact us on email@example.com or visit us on www.fidesmalta.com.