Malta Permanent Residence Scheme

Dr. Jean-Philippe Chetcuti | Published on 18 Jan 2016 | Updated on 05 Aug 2019

The Malta Residence  Citizenship Programmes  A comparison

The 1988 Malta Permanent Residence Scheme was designed to attract affluent individuals and their families to take up permanent resident status in Malta. The scheme is especially attractive to retirees, authors, intellectuals and international consultants, entrepreneurs or simply persons seeking to establish an alternative residence that suits their lifestyle and tax profile.

Quality overseas living

CIP Cost Calculator Internal bannerThe Malta Permanent Residence Scheme is probably the most attractive residence scheme available to individuals seeking to transfer their tax residence overseas to more attractive jurisdictions that are warmer in climate, enjoy a high standard of living, provide a safe environment for younger and older members of the family and a provide a scheme for permanent residence that is selective, affordable and tax friendly. Malta ticks all the boxes for an attractive permanent residence jurisdiction and occupies the highest positions in respected international indexes for quality living and retirement.

Financial Eligibility

The financial qualifications are easy to satisfy and permanent residents are entitled to the following benefits:

  • No minimum stay requirements
  • A low annual tax liability;
  • No world-wide income/wealth tax - tax only paid on income remitted to and kept in Malta
  • No proof or declarations of wealth is necessary.
  • No need to purchase property - rent is also acceptable.
  • No minimum investment requirements.
  • No Inheritance/Wealth Taxes

Tax System for Permanent Residents

Permanent residents are not subject to tax in Malta on foreign sourced income not remitted to Malta. Nor are they subject to tax on any foreign-sourced capital gains whether remitted to Malta or not.

Permanent Residents of Malta are entitled to taxation at the flat rate of 15% on remitted income. Income arising in Malta to a permanent residence permit holder is subject to tax at 35%.

Permanent residents of Malta requiring formal confirmation of their tax residence status in Malta are able to obtain this through a separate procedure.

A beneficiary of this scheme and his or her spouse cannot opt for a separate tax computation. Permit holders are also subject to the payment of provisional tax payments. The minimum taxation payable under the Scheme are non-refundable, and the minimum tax for the first year will be payable by not later than the tax return date. Provisional Tax payments apply from the second fiscal year of residence.

New Malta Permanent Residence Scheme

New applications under the PR Scheme were accepted between 1988 and 2010 and existing PR permits remain valid subject to compliance with the current rules applicable to their Permanent Residence Permit. New applications for permanent residence must be made under the 2011 HNWI Residence Rules that are available in two streams: one for European nationals and another for non-European nationals. For more information about the HNWI Schemes refer to our publication on the Malta High Net Worth residence schemes for EU nationals and non-EU nationals as well as a specialised permanent residence scheme for Swiss and for HNWIs from Liechtenstein, Norway and Iceland. A revised scheme is imminently with terms expected to position the scheme amongst the most cost-effective and attractive residence schemes available in Europe.

Our Permanent Residence Services

Led by Dr Jean-Philippe Chetcuti and Dr Priscilla Mifsud Parker, Chetcuti Cauchi's award-winning Immigration & Relocation Law team is the oldest specialised immigration law practice in Malta. We have successfully represented individuals and families ranging from expatriate retirees, emigrants seeking employment, to HNW individuals listed in Fortune 500.

As advocates, we are registered authorised mandataries according to law and our firm is authorised by the Maltese immigration and tax authorities. We are able to advise you on the tax and legal implications and requirements of the residence application process and indicate expected time frames based on the specific circumstances and nature of your application. Our advice covers the rules applicable to immigrating to Malta under a number of available residence schemes as well as practical relocation assistance ranging from transportation and insurance to schooling and health insurance coverage.

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Key Contacts

Dr Jean-Philippe Chetcuti

Senior Partner, Global Residency & Citizenship

+356 22056411

Mr Kenneth Camilleri

Director, Tax & Immigration

+356 22056414

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