Fiscal & Other Benefits of Maltese Residence

1. An unusually low tax rate

2. Exemption from Customs Duty/VAT

3. Freedom of movement

4. Vehicle Registration Fees

5. Repatriation of your capital and income

6. Rental of Property

7. 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 15%.

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.

- See Malta's Double Tax Treaty Network Top

2. 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

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.

top5. 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.

top7. 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:

  • immovable property in Malta.

  • any shares in a locally registered company (excluding those companies listed on the stock exchange).

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

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