Malta Tax Residency Certificate

Dr. Anna Sultana | 28 Apr 2023

Malta tax residence certificate

Malta Tax Residency Certificates in a Nutshell 

A Malta Tax Residence Certificate is an official document issued by the Maltese Commissioner for Revenue (the Maltese tax authorities) that confirms on an official level an individual's tax residency status. It is often used by taxpayers to provide proof of their residency status to foreign tax authorities and to claim benefits under double taxation avoidance agreements.

Key Legal Issues 

  • Evidence of Malta tax residency
  • Tax Residency in Double Tax Treaties

Why is a Maltese Tax Residency Certificate needed? 

The purpose of a tax residence certificate is to provide evidence of an individual's tax residency status to foreign tax authorities and financial institutions. Tax residency differs from one jurisdiction to the other, however most countries determine an individual's tax residency by various factors such as the number of days an individual spends in a country, their permanent home, family ties, and economic activities. 

Tax residence certificates are also commonly used in the context of , that is treaties providing for the avoidance of double taxation. These agreements aim to prevent taxpayers from being taxed twice on the same income by different countries. Under such agreements, a Malta tax residence certificate is often required to determine which country has the primary right to tax the individual's income. 

Tax residency certificates serve as a confirmation of an individual's compliance with the tax laws and regulations of the country of residence. 

Who needs a Maltese Tax Residency Certificate? 

Tax residence certificates may be required by individuals, businesses, and investors for a variety of reasons. Here are a few common examples: 

Malta-resident Individuals

Expatriates who live and work in Malta may need a tax residence certificate to prove their Maltese tax residency status to their home country tax authorities or to the country where they are working. This is especially important if they are earning income in multiple countries and need to avoid being taxed twice on the same income.  

Malta-resident Businesses 

Maltese Companies that operate in multiple countries or have employees working abroad may also need a tax residence certificate to comply with local tax laws and regulations.  

Malta-resident Investors

Foreign investors who own assets in Malta or earn income in Malta may need a Maltese tax residence certificate to prove their Maltese residency status to their home-country tax authorities and claim tax credits or exemptions.

Benefits and Limitations of a Malta Tax Residency Certificate

A Maltese tax residence certificate serves as proof of tax residency in a particular country or jurisdiction, thereby simplifying the process of reporting taxes and preventing confusion or disputes concerning tax liabilities. 

Additionally, tax residence certificates can sometimes lead to reduced tax liability by enabling individuals, businesses, or investors to take advantage of tax treaties between countries. These tax treaties may reduce or eliminate taxes on certain types of income for residents of other countries, thus offering a substantial benefit to those in possession of a valid tax residence certificate. 

Eligibility requirements for Tax Residency Certificates in Malta 

Obtaining a Malta tax residence certificate is subject to requirements, such as physical presence or significant economic activity in Malta. Moreover, tax residence certificates typically have a limited lifespan and must be renewed periodically, adding to the administrative burden and cost of obtaining and maintaining them. 

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Key Contacts

Dr Priscilla Mifsud Parker

Senior Partner, Corporate, Tax & Immigration

+356 22056122

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