Fiscal & Other Benefits
of Maltese Residence
unusually low tax rate
Exemption from Customs
Vehicle Registration Fees
Repatriation of your
capital and income
No death duties are
payable in Malta
1. An unusually low tax rate
A flat rate of 15% is
chargeable on all income (less personal allowances) received in, or
remitted to, Malta from either local or foreign sources. This is subject
to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
This means that, thanks to Malta's 34 double
tax treaties, persons who take up residence in Malta can receive their
pensions in Malta free of tax at source and subject to a mere
Overseas capital funds
invested locally are of course only taxed on any interest or dividends
generated thereon, again at a 15% flat rate. Permanent residents also
benefit from double taxation agreements existing between Malta, most
European countries, Canada, Australia and the USA, ensuring that tax is
never paid twice upon the same income.
First payment of Tax:
For applications filed after 1st May 2004,
the minimum tax of EUR4,230 (approx. US$4,900) is payable provisionally in advance to the
Commissioner for Inland Revenue within 30 days of approval.
The Residence Certificate will only be issued upon presentation of a tax
receipt confirming payment.
Second payment of Tax: This will be due after the second
year of residence. If the application is not accepted, the tax will be
refunded within fourteen days. The tax so paid in advance will be credited
to the applicant’s tax liability for the year in which residence is
actually taken up.
Malta's Double Tax Treaty Network
Exemption from Customs Duty/VAT
Your used household and
personal effects, furniture and other domestic articles (excluding
firearms and weapons of all kinds) may be imported free of import duty if
imported within six months of your arrival in Malta to take up residence.
In such cases import licenses are not required.
Click here for more info about
importation of motor vehicles.
3. Complete Freedom of Movement
There are no annual minimum stay requirements. A Malta permanent resident may
travel to and from Malta freely without the need of applying for a visa or
extensions of stay.
4. Vehicle Registration Fees
Malta Permanent Residents are
allowed to register their imported vehicle at preferential rates. Click
here for more info.
5. Repatriation of
your capital and income
Proceeds from the sale of
property, encashment of investments, local income and excess income
brought into Malta may be freely repatriated by permanent residents,
provided that any tax due has been settled.
6. Rental of Property
Owners of properties with
swimming pools or properties enjoying the use of swimming pools are
allowed to rent them out, provided that such properties are licensed as
holiday accommodation by the Hotels and Catering Establishments Board. All
income thereon, is of course, subject to the 15% tax rate mentioned in (1)
above and may be repatriated as in (5) above. Leased
properties cannot be sub-let.
7. No death duties are
payable in Malta
1. If a property is purchased
in one name, the heirs of the deceased have to pay 7% provisional tax on
the value of the property declared. This value will in turn be verified by
an appointed architect.
2. If a property is bought
jointly and one of the parties passes away, provisional tax of 7% is only
paid on half the estate, i.e. half the value as stated in (1).
Though no death duties are
payable in Malta, Transfer duty (according to the Duty of Documents and
Transfers Act, 1993) is charged on:
Conditions for granting a Malta Residence Permit
Visa free travel in the Schengen Area
Confidentiality of applicants' data
Residence Scheme amendments (October 2004)
Malta Permanent Residence Index