Malta Ordinary Residence Scheme

Dr. Jean-Philippe Chetcuti | 14 Jun 2018

Ccmalta Default

The Malta Ordinary Residence Scheme is an attractive residence scheme currently available to EU & EEA nationals and nationals of Switzerland, Liechtenstein, Norway and Iceland seeking to transfer their tax residence to a safe, high quality and tax-efficient jurisdiction such as Malta.

Eligibility for Malta Ordinary Residence

  • Nationalities eligible to ordinary residence in Malta include all EU and EEA nationals as well as nationals of Switzerland, Liechtenstein, Norway and Iceland.
  • Applications are approved for non-EU nationals at the discretion of the authorities.
  • Applicants for ordinary residence status need to demonstrate financial independence without being subjected to complex means eligibility testing.
  • Ordinary residents need to evidence their local residential address by purchasing or renting a house or apartment in Malta. This needs to be available at the time of filing of the application.
  • Ordinary residents may live and enter into any business or employment in Malta.
  • Holders of ordinary residence permits are allowed to convert to other available residence schemes.

Remittance Based Tax System for Malta Ordinary Residence

Residents of Malta under the ordinary residency scheme and who are not domiciled in Malta are taxable on a remittance basis. Accordingly, ordinary residents are not taxable on foreign source income not received in Malta and also not taxable on any capital gains arising outside Malta, whether remitted to Malta or otherwise.

The Budget Implementation Act passed recently this year, introduced a minimum annual tax in Malta of €5,000 for individuals or couples who are resident but not domiciled in Malta, and who earn at least €35,000 yearly.

Conditions of ordinary residence permits allow resident permit holders to take up residence in Malta and physically live in Malta with the possibility of taking up employment and doing business in Malta.

 

Tax Rates for Single Taxpayers

Single Rates
0 9,100 0% 0
9,101 14,500 15% 1,365
14,501 19,500 25% 2,815
19,501 60,000 25% 2,725
60,001 and over 35% 8,725
 

Tax Rates for Married Taxpayers

Married Rates
0 12,700 0% 0
12,701 21,200 15% 1,905
21,201 28,700 25% 4,025
28,701 60,000 25% 3,905
60,001 and over 35% 9,905
 

Tax Rates for Parent Taxpayers

Parent Rates
0 10,500 0% 0
10,501 15,800 15% 1,575
15,801 21,200 25% 3,155
21,201 60,000 25% 3,050
60,001 and over 35% 9,050

Ordinary Residence Permit Application Process

Applications for Ordinary Residence permits are generally processed within a shorter time compared with other residence permit applications.

Our Ordinary 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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