PERMANENT RESIDENCE SCHEME

Importation of Motor Vehicles

1. Exemption from Customs Duty/VAT

2. Vehicle Registration Fees

 

1. Exemption from Customs Duty/VAT

A maximum of one private motor-vehicle may be imported per person (husband and wife counting as one) free of Value Added Tax (Item 12, Fifth Schedule to the VAT Act, 1998) and free of customs duty (Second Schedule to the Import Duties Act), subject to such person satisfying the Comptroller of Customs that:

(i) he is in possession of a permit of residence issued to him by the Government in terms of section 7(1) of the Immigration Act, 1970; and

(ii) the motor-vehicle has been in his ownership for a continuous period of at least six months immediately before the issue of the residence permit, provided that customs charges and/or fiscal charges to which such vehicle is normally liable have been paid either in the country of origin or in the country of departure and subject to the motor-vehicle being imported within six months of the date of the said permit or of such person’s arrival in Malta to take up residence, whichever date is the later. Provided that where any motor-vehicle imported as aforesaid free of duty is sold or disposed of by such person for use in Malta, such motor-vehicle shall be deemed to be taken out of bond at the time of such sale or disposal and duty shall be payable thereon by the person who becomes the owner thereof in accordance with the provisions of section 4 of this Act.

(c) ‘At time of disposal the vehicle’s value is assessed by Customs. Motor-vehicles of EU origin are subject to payment of 15% VAT on the assessed value, while those of Non-EU origin pay 12% duty on the assessed value and 15% VAT on the total of the assessed value and duty due.’

Vehicle Registration Fees

Permanent Residents are allowed to register their imported vehicle at the following rates (Second Schedule, Motor Vehicles Registration Tax Act, 1994):

Vehicles with engine:
(a) of a cylinder capacity not exceeding 1500cc – 11%
(b) of a cylinder capacity exceeding 1500cc – 16.5%

The First Schedule rates of the said Act (applicable when the imported vehicle is sold or disposed of for use in Malta) read as follows:

Vehicles with engine:
(a) of a cylinder capacity not exceeding 1300cc-50.0%
(b) of a cylinder capacity exceeding 1300cc but not exceeding 1500cc – 53%
(c) of a cylinder capacity exceeding 1500cc but not exceeding 1800cc – 60%
(d) of a cylinder capacity exceeding 1800cc but not exceeding 2000cc – 65%
(e) of a cylinder capacity exceeding 2000cc – 75%
15% VAT is applicable on the amount of Registration Tax payable.

For motor vehicle tax planning assistance, contact the ADT Department.

Conditions for granting a Residence Permit

Visa free travel in the Schengen Area

Permanent Residence Index