Residency in Malta

Residency in Malta may be achieved through the Ordinary Residence Permit, which is primarily aimed at EU and EEA nationals, but can also apply to non EU and EEA nationals.

Citizens of EU member states have the right to enter and reside in Malta, but if their stay is going to exceed 3 months, then they will have to apply for a residence permit with the Department of Citinzenship and Expatriates Affairs. Non-EU nationals may also apply for such residence permits, but the conditions vary slightly.

Any person who is seeking to obtain Ordinary Residence in Malta must prove that he/she receives a stable income which is sufficient to support himself/herself and his/her dependants without recourse to the social assitance system in Malta.

Such a person must also be in possession of a health insurance policy which covers himself/herself and his/her dependants in Malta.

A person who successfully obtains Ordinary Residence in Malta will not have any particular tax benefits. In order to benefit from reduced taxation rates, an individual will have to be accepted under one of the following schemes :

Ordinary Residents in Malta will be taxed in Malta at the progressive taxation rates available to Maltese Nationals, on any income remitted to Malta and on any Maltese source income or capital gains. Ordinary residents will not be taxed on foreign source income which is not remmitted to Malta and on foreign source capital gains, even if the latter are remitted to Malta.

Long Term Residence

Individuals who have resided legally in Malta for a period of 5 continuous years may be granted Long-term residence status. The term “continuous” means that such individuals must not have been away from Malta for a period exceeding 6 consecutive months in any calendar year of the said 5 years in question, and not exceeding 10 months in total, out of the 5 years in question.

Temporary Residence

Individuals who have no intention of residing in Malta and stay in Malta for a temporary period of time, not exceeding 183 days in any calendar year, will only be taxed on Malta source income and capital gains. Foreign source income and capital gains will not be taxed even if these are remitted to Malta.

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