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Obtaining Residency in Malta


Michealle Oakes


November 25, 2022


08:40 AM

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Maltese residency is ideal for ambitious and driven individuals wishing to enjoy the benefits of EU membership while basing themselves in such an outstanding strategic location. The island has a highly trained and linguistically agile workforce, very friendly tax regime, superb weather, beaches that are among the best in the world, and that has excellent air and sea links to all global hubs.

How to Obtain Residency in Malta?

There are several immigration pathways available for those interested in obtaining residence in Malta. We have outlined some of the most common residency programs below, including: Malta Permanent Residency Program; Malta Retirement Programme; and Malta Ordinary Residence Permit.

What is the Malta Residency Program (MPRP)?

The Malta Permanent Residence Programme (MPRP) was launched in 2021 and is a residency programme open to non-EU nationals by means of investment in Malta. MPRP offers third-country nationals the opportunity to acquire a second residency in Malta which is a member state of the EU. This new programme has effectively replaced the previous programme known as the Malta Residence and Visa Programme (MRVP).

What are the benefits of the Malta Residency Program?

There are several benefits to become a Maltese resident:

  • Successful applicants and their dependants will obtain a permanent residence status in Malta valid for life;
  • Successful applicants and their dependants have the right to reside indefinitely in Malta; and
  • Visa-Free travel within Schengen Area, with a right to stay in one place for up to 90 days within a 180-day period.

What are the Schengen Region Countries?

As a Maltese Resident, you will gain free movement within the 26 countries comprising the Schengen Area. This includes:

🇦🇹Austria 🇬🇷Greece 🇳🇱Netherlands 🇧🇪Belgium 🇭🇺Hungary 🇳🇴Norway 🇨🇿Czech Republic 🇮🇸Iceland 🇵🇱Poland 🇩🇰Denmark 🇮🇹Italy 🇵🇹Portugal 🇪🇪Estonia 🇱🇻Latvia 🇸🇰Slovakia 🇫🇮Finland 🇱🇮Liechtenstein 🇸🇮Slovenia 🇫🇷France 🇱🇹Lithuania 🇪🇸Spain 🇩🇪Germany 🇱🇺Luxemburg 🇸🇪Sweden 🇨🇭Switzerland

What are the Maltese Residency Program Requirements?

Eligibility and Requirements: The main applicant must be at least 18 years of age; Must be a third-country nationals, therefore, Maltese, EEA and Swiss nationals are excluded and cannot apply; Must have assets amounting to at least €500,000, out of which a minimum of €150,000 must be in the form of financial assets; Has stable and regular resources which are sufficient to maintain him/herself and any of his/her dependents; Be in possession of valid travel documents; Be in possession of health insurance in respect of all risks covered for Maltese Nationals.

What is the Malta Retirement Programme?

The Malta Retirement Programme is for retirees or adults nearing retirement age and who are considering taking up residence overseas. Malta is situated in the middle of the Mediterranean sea; its warm climate, culture, health care has made the island an attractive retirement location. Retirees can also benefit from a flat rate of 15% on all foreign source income which is remitted to Malta, subject to a minimum annual tax.

What are the benefits of the Malta Retirement Program

Applicants that decide to take up residence in Malta through the Malta Retirement Programme will benefit from a flat tax rate of 15% on a pension remitted and a minimum tax payable amount of €7,500 in annual tax. An additional €500 is to be paid annually for every dependent or special carer engaged.

Who is eligible for the Malta Retirement Program?

  • EU/EEA or Swiss national;
  • Receive your pension income in Malta and must constitute at least 75% of your chargeable income;
  • Applicants cannot be in an employment relationship, however, may hold non-executive roles on the board of a Maltese company;
  • Purchase a property with a minimum value of €275,000 (situated in the north and central areas of Malta), or €250,000 (situated in Gozo or the south of Malta) or rental of a property for a minimum of €9,600 per annum (situated the north and central areas of in Malta), or €8,750 (situated in Gozo or in the south of Malta);
  • Be covered by an EU Health Insurance Policy;
  • Be a fit and proper person with no criminal record. Also, a due diligence exercise is carried out by the Maltese Inland Revenue Department before the granting of the special tax status.

Malta Streets.webp Malta is full of winding white sandstone streets that are never too far from the sea.

What is the Malta Ordinary Residence Permit?

Any EU, EEA, Swiss nationals or third-country nationals who wish to reside in Malta for more than three months, is required to apply for an e-Residence card with the Department for Citizenship and Expatriate Affairs. Before applying for an e-Residence card, applicants should look into renting or purchasing a property in Malta, as well as opening a Maltese bank account. This is done to provide prospective applicants substance within Malta.

What are the benefits of the Malta ordinary residence permit?

  • Tax Residence in Malta;
  • Any capital gains arising from outside of Malta, and is not received in Malta, is not subject to tax in Malta;
  • Any income arising from outside of Malta, and is not received in Malta, is not subject to tax in Malta.

Subject to capital gain and income arising from outside of Malta, the “remittance basis” of taxation does not apply to individuals who apply for long-term residence or a permanent residence certificate. Such individuals would be subject to tax in Malta on a “worldwide income basis”.

Do I have to pay income tax in Malta?

Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on income arising in Malta, on income arising outside Malta but received in Malta and on capital gains arising in Malta. No tax is chargeable on capital gains that arise overseas but which are remitted to Malta.

Personal income tax is charged at progressive rates from 0% up to a maximum of 35%

Who is eligible for the ordinary residence permit in Malta?

The Ordinary Residence Permit is an attractive residence scheme with many benefits. There are different grounds on which applicants may become ordinarily resident in Malta, such as:

EU/EEA or Swiss nationals have the right to enter, remain and reside in Malta. The most common scenarios being:

  • Self-sufficiency;
  • Employment/self-employment in Malta;
  • To study.

Third-country nationals may also apply, but their rights are not automatic. Also, there are restrictions and conditions imposed, especially regarding employment/self-employment rights.

What are the requirements to obtain the Maltese Ordinary Residence?

  • Provide evidence of financial self-sufficiency needs to be demonstrated to ensure the applicant will have a high standard of living in Malta;
  • Applicants need to provide proof that they have the required available funds of at least €14,000 for single persons. In the case of married couples provide evidence that they have the necessary available funds of at least €23,500 or over, and an additional €3,500 for every dependent included in the application;
  • Applicants must either purchase or rent property in Malta before submitting the Ordinary Residence application.

Michealle Oaks is the Business Development Director at Zeta, a boutique firm offering corporate services, specialize in assisting our clients with company formation, relocation services, assist with any tax planning through our preferred Tax Advisors, advise on structuring and estate planning solutions.

👉 Contact Michealle today!

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