Ordinary residence in Malta requires individuals to physically live on the island for a period of six months or more. EU/EEA/Swiss nationals may apply as being economically self-sufficient by proving that they are financially stable or on the basis of employment if an individual works in Malta as an employee or is self-employed. EU/EEA/Swiss nationals and Non-EU nationals may accompany the main applicant provided that they prove that they are financially dependent on the latter. One may also apply on the basis of education if an individual is studying in Malta. If the student is under-age, his/her legal guardian can apply for a residence permit to accompany him/her upon confirming that he/she has stable and regular income.
EU/EEA/Swiss nationals and their family members may apply for permanent residence upon completing a continuous five-year period of legally living in Malta. Applicants must not have absented themselves from Malta for more than six months a year.
Non-EU nationals may apply for a residence permit if they will be working in Malta or upon opening a business in Malta provided certain criteria are satisfied.
Foreign partners of EU nationals may apply for residence in Malta provided that they confirm that they have a regular and stable income and that the relationship has existed for at least two years.
Non-EU nationals who reside legally in Malta may apply for the reunification of their family members, namely the spouse being 21 years of age or over and minor unmarried children under the age of 18.
Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on:
- Income and capital gains arising in Malta
- Income arising outside Malta which is received in Malta
- No tax is chargeable on foreign capital gains even if such gains are remitted to Malta
A person who is resident non domiciled (or a married couple who opts for the joint computation) and who derives at least €35,000 income or capital arising outside Malta which has not been received in Malta, will be subject to a tax liability of not less than €5,000 per annum. Tax paid in Malta on all income, apart from the transfer property tax, is deductible from the minimum tax.
Personal income tax is charged at progressive rates of tax up to a maximum of 35 per cent, as illustrated by the following tables:
In order to qualify for the parental rate computation, a parent must satisfy the following conditions:
- 1. He / she maintained under his/her custody a child or paid maintenance (established or authorised by courts) in respect of his or her child;
- 2. Such child was not over 18 years of age, or not over 23 years if receiving full-time instruction at a tertiary level;
Such child did not earn income in excess of €3,400 from gainful occupation.