EXPATRIATES & PERMANENT RESIDENCY

The treatment under Maltese law of foreigners that wish to take up residence in Malta depends on nationality of the person concerned: nationals of an EU or EEA Member State benefit from the rules that must ensure (and regulate) their freedom of movement within the European Community, whilst other persons, so-called Third Country Nationals, are subject to a more restrictive regime in line with the Schengen acquis. 

 

 

Since Malta joined the European Union in May 2004, EU/EEA nationals have the option to choose between applying for a residence permit or document in terms of the Immigration Regulations and a permanent residence permit issued under the Resident Scheme Regulations. 

 

a) Residence permits for EU/EEA citizens – Long-term residence 

 

Since 1 May 2004, the date of Malta’s accession to the European Union, EU/EEA citizens are allowed to reside in Malta. However, in cases where such residence is to exceed three months (six months in the case of a person who provides evidence that he is genuinely seeking employment and has a genuine prospect of securing employment by the end of the said period of six months), an application must be made for a permit; the Principal Immigration Officer will automatically issue the citizen and, where applicable, his dependants, with a residence permit or a residence document in accordance with the Immigration Regulations. A residence permit will specify whether the residence has been taken up for the purpose of long-term or permanent stay in Malta, for work, study or other purpose. It should be noted that, depending on the purpose of the stay in Malta, other formalities than those related to residence permits or documents may have to be fulfilled. For example, persons wishing to take up employment in Malta are required to obtain an employment licence. 

 

Residence permits are valid for a period of five years from the date of issue and will, in normal circumstances, be automatically renewable. Breaks in residence do not affect the validity of the residence permit, as long as they do not exceed six consecutive months. 

 

Residence permits for persons that do not reside in Malta for employment, professional or education purposes, are issued provided that the EU/EEA citizen and those dependants actually accompanying him:  

 

(i) are covered by sickness insurance in respect of all risks in Malta;  

 

(ii) have sufficient resources, to avoid their becoming a burden on the social assistance system in Malta during the period of their residence; and 

 

(iii) provide evidence to that effect, along with a valid identification document and, in the case of dependants who are third country nationals, a valid visa, when the application for the residence permit is submitted. 

 

A person’s resources are deemed “sufficient” if they are higher than the level of resources indicated by the Ministry responsible for social policy as being the minimum means which determine the grant of social assistance to Maltese nationals, and taking into account the personal circumstances of the applicant and, where appropriate, the personal circumstances of accompanying dependants. If this criterion cannot be applied, such resources are deemed sufficient if they are higher than the level of the national minimum social security pension payable by the Government of Malta at the time of application. 

 

The following documents must be produced to the Immigrations Office (Police Headquarters) together with the completed application form (and for each dependant): 

 

Although residence (and employment) permits must, as a rule, be issued automatically and unconditionally, the processing of the applications may take a few months. The Immigration Regulations provide that the Principal Immigration Officer has to take a decision as to whether to grant or refuse a first residence permit, or whether to renew same, as soon as possible and in any event not later than six months from the date of application for the permit. The person concerned is allowed to remain in Malta temporarily pending a decision to grant or refuse such application. 

 

b) Certificates issued under the Residents Scheme 

 

Instead of applying for a residence permit, EU/EEA citizens may opt to apply for a certificate issued in accordance with the Residents Scheme Regulations of 2004.  

 

Indeed, any foreigner, of whatever nationality, including a third country national, may submit an application for a permanent residence permit provided the capital or annual income conditions are satisfied. This permit is issued on an indefinite basis. The conditions for the issuing of a Residence Permit are the following: 

 

1.1 Capital or Income Qualifications 

 

Applicants must produce evidence of the following : 

 

(1) An annual income of approximataly.EUR 23,300 or over, consisting in business profits, rents, investment income, pension, or a combination thereof; 

 

or 

 

A capital equivalent to approximataly EUR 350,000 or over, in the form of bank account holdings, real estate, investments and other assets situated in any country outside Malta. 

 

(2) Remit annually to Malta an income equivalent to approximataly EUR 14,000 in his/her respect and approximataly EUR 2,330 in respect of each dependant . 

 

In either case, the whole amount is not required to be brought into the country, and the value of the property purchased locally is also taken into account as part of the capital requirement, if you proceed to acquire real estate prior to the issue of a permit in your favour. 

 

There is no restriction as to how one must use money remitted under this rule as long as it is not retransferred out to a foreign bank account. 

1.2 Conduct Certificate 

 

A Conduct certificate from the police authorities nearest to your place of residence. Only if this is not issued by the said authorities, character references would be required from any three of the following: 

 

(a) your bankers; 

(b) your solicitor; 

(c) your medical practitioner; 

(d) your employer (or previous employer); 

(e) your accountant; or 

(f) any person of a similar standing. 

 

1.3 Marriage Certificates or Birth Certificates 

 

A copy of the marriage certificate is required in the case of a married couple, a married woman who is applying on her own behalf, a divorced woman, or a widow. Otherwise full birth certificates should be submitted. 

 

1.4 Passport Photos 

 

Three passport-sized photographs of each person whose name appears on the application form. 

 

1.5 Deed of Purchase/ Lease Agreement 

 

If available, a copy of either the deed of purchase or the lease/rent agreement if you own or rent/lease property in Malta. 

 

2. Application Procedure 

 

Spouse, children under 21 years of age, parent or grandparent who is financially dependant on the applicant. 

 

Where Malta has a resident Diplomatic Mission in the country of nationality, the application form, together with the above-mentioned supporting documents, shall be deposited, in person, by the applicant, at the said resident Diplomatic Mission. The applicant shall be required to undergo a mandatory interview. 

 

Where Malta has no resident Diplomatic Mission in the country of nationality, the application form, together with the supporting documents, shall be sent- 

 

(i) either to the Malta Diplomatic Mission accredited to the country of nationality ; 

or 

(ii) directly to the Commissioner of Inland Revenue. 

 

The use of an intermediary or agent is permissible only in those instances where the application form together with the supporting documents are sent directly to the Commissioner. A telephone interview may be conducted by the Commissioner. 

 

Very importantly, as this is a disqualifying factor, all the supporting documents, deposited with the application, must be certified original documents. Furthermore, a warranted notary public of the country of nationality shall attest that the information contained therein is correct. All supporting documents shall be legalised by the Ministry of Foreign Affairs of the country of nationality and counter-legalised by an official of the Malta Diplomatic Mission in the country of nationality. For this purpose, the Malta Diplomatic Mission in the country of nationality shall periodically ascertain, by virtue of a Note Verbale, that any officer legalising the supporting documents are truly officials pertaining to the Ministry of Foreign Affairs of the country of nationality. 

 

Where Malta has no Diplomatic Mission in the territory of the country of nationality and the application form and related documentation are received by the Malta Diplomatic Mission accredited to the country of nationality, the process of verification as to the legalisation of documents by the Ministry of Foreign Affairs of the country of nationality, shall be made prior to the counter-legalisation by the accredited Diplomatic Mission. For this purpose, the accredited Diplomatic Mission shall also periodically ascertain, by virtue of a Note Verbale, that any officer legalising the documents are truly officers pertaining to the Ministry of Foreign Affairs of the country of nationality. 

 

An administrative fee of approximataly EUR 120 per application, or their equivalent in foreign currency, shall be charged by the Malta Diplomatic Mission for the processing of the application and its transmission to Malta. The Malta Diplomatic Mission shall issue an official receipt against payment of the administrative fee. The fee shall be non-refundable, even in those instances where an application is refused. 

 

3. Conditions for the Renewal of a Residence Permit 

 

3.1 Acquisition or Rental of Property 

 

Within a year from the issue of their residence permit, permanent residents must purchase their own residence in Malta at a value that is not less than approximataly EUR 120,000 in the case of a house or approximataly EUR 70,000 in the case of an apartment. 

 

Alternatively, the applicant may opt to lease or rent a property of which the minimum rental is approximataly EUR 4200 per annum. 

 

3.2 Employment/Business Engagement 

 

No employment or engagement in business may be undertaken by applicants for permanent residency unless authorised by the competent authorities.  

 

Permanent residents are not allowed to participate in political activities; however, participation in local council activities is allowed 

 

4. Fiscal & Other Benefits of Maltese Residence  

 

4.1 A low tax rate 

 

A flat rate of 15% is chargeable on all income received in, or remitted to, Malta from either local or foreign sources. This is subject to a minimum payment of approximataly EUR 4,200 per annum. 

 

This amount falls due in 3 installments of approximataly EUR 840 on the 30th April, approximataly EUR 1260 on the 31st August and approximataly EUR 2,100 on the 21st December of each year. Since approximataly EUR 4,200 would have to be paid in advance for the first year (see above) the aforesaid installments start to be paid from the following year. 

 

This means that, thanks to Malta’s 45 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% with tax never paid twice upon the same income. 

 

First payment of Tax: for applications filed after 1st May 2004, the minimum tax of EUR 4200 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. 

 

4.2 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 licences are not required. Special provisions may apply to motor vehicles. 

 

4.3 Complete Freedom of Movement  

 

There are no annual minimum stay requirements. A permanent resident may travel to and from Malta freely without the need of applying for a visa or extensions of stay. 

 

4.4 Repatriation of 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. 

 

4.5 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 1.1 above. 

 

Third Country Nationals (“TCNs”) (not coming from another Schengen State) who wish to enter Malta for a duration not exceeding three months are required to: 

 

(a) hold a valid passport; 

(b) hold a valid visa; 

(c) submit, before entry into Malta, documents substantiating the purpose and the conditions of the planned visit, as applicable; 

(d) have, even if in possession of a valid visa, sufficient means of support, both for the period of the planned visit and to return to their country of origin or to travel in transit to a third state into which his admission is guaranteed, or is in a position to acquire such means legally; 

(e) have not been reported as a person to be refused entry; and 

(f) not be considered to be a threat to public policy or national security. 

 

TCNs are only entitled to reside in Malta if a uniform residence permit for a specific purpose is issued in their regard. 

 

It is an implied condition of any residence permit issued to any person, that such person may not in Malta exercise any profession or occupation or hold any appointment or be employed by any other person or engage in business without a the relevant licence. 

 

TCNs may benefit from the Residents Scheme described. The Commissioner of Inland Revenue is empowered to issue a certificate which is deemed to constitute a residence permit issued in terms of the Immigration Act, to individuals who satisfy the conditions established under these Residents Scheme Regulations. However, such certificate does not entitle the holder thereof to any of the rights mentioned in the Immigration Regulations. 

 

Every person over the age of fourteen years who resides in Malta for a period of more than six months must apply for a Maltese identity card.