- A citizen of the EU basically has 2 options:

Option 1:

(a) You set up residence in Malta, under the “normal” Immigration rules (Legal Notice 205/ 04, see below for link), whereby EU citizens are able to set up residence in Malta, and work in Malta. This is administered by the Immigration Office of the Malta Police. There will be some procedures to complete: application for a residence permit, and application for an employment licence or evidence of self-employment. The application process includes checking by the police, and this in practice unfortunately can take some time.

(b) You will be treated for tax purposes in the same way as a Maltese resident, and you will pay tax at 35% on income that arises in Malta or that you receive in Malta.

(c) Breaks in residence must not exceed 6 consecutive months.

Link: http://www.doi.gov.mt/EN/legalnotices/2004/04/LN205.pdf

Option 2:

You set up your residence in Malta under the optional Residents Scheme Regulations (Legal Notice 428/04, see link below). This scheme is administered by the expatriates section of the Inland Revenue dept. There is an application form to complete, and documents to produce. The application process includes checking by the police, and this in practice unfortunately can take some time. The advantage is chiefly that you will pay a reduced personal rate of 15% tax on income brought into/arising in Malta, subject to a minimum annual amount of €4,200. There are also exemptions/reduced tax on personal effects and car brought to Malta.

(b) The main requirements and restrictions:

You must show evidence that you have a capital (e.g. bank deposits, investments, immovables) of €350,000 or an annual income of €23,300.

You must import a minimum income of €14,000  plus €2,330 for each dependant, into Malta on an annual basis.

Within a year of taking up residence, you are required to lease a premises (not less than €4,200 per annum) or purchase a house (not less than €116,500) or purchase an apartment (not less than €69,900). Apart from this, there is no minimum stay requirement.

The exercise of a profession, occupation, or any employment or engagement in trade/business is in effect prohibited.

Link: http://www.doi.gov.mt/EN/legalnotices/2004/10/LN428.pdf

Link: http://www.doi.gov.mt/EN/legalnotices/2004/10/LN428.pdf

This information is kindly provided by our Real Estate Partner