Resident Non-Dom Status
Persons may move and take up residence in Malta under the most appropriate residence rules applicable to them. In the case of non-EU or EEA nationals, individuals as well as families may take up residence under the Global Residence Program. Individuals from EU countries may either take up residence in Malta under the Malta Ordinary Residence system or benefit from the Residence Program Rules. Maltese tax law deems an individual non-dom resident in Malta in case of either spending more than 183 days in Malta or in case of circumstances demonstrated by the tax payer that support an intention to reside
Source & Remittance Basis of Taxation and Tax Reliefs
Non-domiciled residents of Malta are taxable on a remittance basis only on foreign-source income which has been remitted to Malta. Income and capital gains arising in Malta are subjects to tax in Malta at the applicable personal income tax rates.M
All capital gains arising outside of Malta are not taxed. Both capital and savings which are remitted to Malta also avoid the Maltese taxation.
Moreover, individuals who take up residence in Malta are eligible to receive their pensions in Malta completely free of tax at source and subject to a mere 15 per cent under the Global Residence Program or the Retirement Program.
Overseas capital funds invested locally are of course only taxed on any interest or dividends generated thereon, again at a 15 per cent flat rate. Permanent residents also benefit from double taxation agreements existing between Malta, the most European countries and Canada, Australia as well as the USA, so that one and the same income will not be taxed twice.
Moving to Malta? A Guide for Foreigners: Residence permit types
Having been a member state of the European Union since 2004, the island of Malta no longer applies restrictions to the movement of nationals of other EU member countries. In addition, in 2007, Malta also became part of the Schengen area, which made people's decision to move there even easier. The fact that the population of Malta is around 450,000 inhabitants, living in a total space that covers around 316 square kilometers, makes it the smallest and at the same time the most densely populated country in the European Union.
Malta has a history of different colonial periods, and the English language can be totally used. All this combined with the relatively low cost of living, it is not a surprise that the island of Malta is attracting more and more people from all over the world which have chosen and decided to move to Malta and call it home.
There are four different types of residency permits in Malta, and there are types of visa and permits that tend to be more suitable than others, depending on the nationality of the applicants.
Schengen Tourist Visa
The Schengen area consists of twenty-six states. The advantage of those member-countries is that people are free to travel from any of them to another one without even having to present a passport or identity card to the border controls. With a Schengen tourist visa, people are also free to move in and out from country to country in the Schengen area for up to ninety days, since that is the duration of this type of visa. The procedure of getting the Schengen tourist visa is pretty simple and consists in having a stamp in the passport at the boarder of the first Schengen country entered. People who already have the Schengen tourist visa and who would like to stay more can simply apply for a visa extension, which can be done at the Central Visa Unit in Valetta, the capital of Malta.
Permanent Residence in Malta
The permanent residence type of visa in Malta is a special one insofar as it is open to everyone, even for non-EU citizens; however, the visa has to be renewed every year at the same time. There are also special credits such as the Malta Global Residency Programme and others for those who wish to buy property in Malta. At any rate, seek advice from an immigration lawyer and others in the ex-pat community in Malta.
Permanent Residency in Malta
The idea of the permanent residency permit is to entitle the holder who is not a citizen of Malta to reside permanently in Malta without the necessity of obtaining and renewing an entry visa. This permanent resident therefore has freedom of movement in Malta.
Provided that the permanent resident remains within the law, then the permit is renewed automatically annually as a formality and once granted, a permit will not be revoked unless the resident in question breaches one or more conditions of the permit. However, the permanent residency permit has no effect on the visas the holder might need to enter other countries from Malta.
Permanent residency permit holders in Malta must pay a flat tax rate of fifteen per cent on all income brought into Malta. This is subject to a minimum payment of 4,500 euros per year. This minimum payment covers an income of approximately 30,000 euros per year. The minimum taxation that is paid under the Scheme is non-refundable. 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 year of residence. However, the permanent resident’s global income which is not made or brought to Malta should not be taxed in any cases.
Ordinary Residence in Malta
The Malta Ordinary Residence program is a really attractive residence program currently available to EU & EEA nationals as well as nationals of Switzerland looking to transfer their tax residence to a safe and tax-efficient jurisdiction. Malta happens to be the ideal destination for that. Holders of an ordinary residence permit benefit from the right to reside and work in Malta, as well as to travel completely freely across the whole Schengen area.
The ordinary residence permit is the type of visa in Malta that is made for ex-pats that are coming from other European Union countries. The tax rate holders of this visa pay varies depending on the income, marital status, and tax credits. The requirement that citizens will be eligible to apply for that type of residence permit only after they have been legal residents for five years. Moreover, the ordinary residence needs to be renewed every five years.