Permanent Residence

These are just some of the reasons why an increasing number of foreigners are making the Maltese Islands their permanent home:

• A pleasant climate

• Warm hospitality

• A peaceful way of life

• A rich cultural and historical heritage

• A Permanent Residence Scheme which offers a number of incentives to foreigners interested in settling in Malta.

Concessions that this scheme can offer you :

An unusually low tax rate

• A flat rate of 15% is charged on all income (less tax rebates as applicable) received in, or remitted to Malta from either local or foreign sources. This is subject to a minimum payment of Lm 1,800 per annum. (Lm 1 = approximately US $ 2.50 or Euro 2.40)

Exemption from customs duty

• Your used household and personal effects, furniture and other domestic articles (excluding firearms and weapons of all kinds) may be imported free of duty if imported within six months of your arrival in Malta. In such cases import licences are not required.

• One private motor-vehicle may be imported free of duty provided:

• it has been in your possession for a continuous period of at least six months immediately before the issue of the said residence permit;

• all charges due thereon have been paid prior to the vehicle’s arrival in Malta, and

• it is imported within six months of either your arrival in Malta, or of the issue-date of your residence permit (whichever date is the later)

If you are married, you and your spouse will only be able to import one car between you on these terms. Customs duty will become payable on the value of the vehicle as assessed by the Customs Department, at the time it is transferred to a non-entitled person. A first registration fee is payable according to the vehicle’s horsepower.

Repatriation of your capital and income

This applies to:

• Any unspent remainder of the capital you brought to Malta

• Any income this has accumulated during your stay

• Any proceeds from the sale of your property and/or other investments in Malta.

No death duties are payable in Malta

Though no death duties are payable in Malta, Transfer Duty (according to the Duty on Documents Transfers Act of 1993) is charged on:

• Immovable property in Malta

• Any shares in a locally registered company (excluding those companies listed on the stock exchange)

Any foreigner, of whatever nationality, may submit an application for a permanent residence permit provided specific conditions are satisfied. This permit is issued on an indefinite basis.

If you qualify to apply for a permit under this scheme, you can submit an application for a permanent residence permit:

• if you have an annual income equivalent to Lm 10,000 or a capital equivalent to Lm150,000

• if you can remit annually to Malta an income equivalent to Lm 6,000 in your respect, and Lm 1,000 in respect of each of your dependants. For this purpose of this scheme "dependants" means:

• your spouse;

• children under 21 years of age;

• a parent or grandparent who is wholly dependent on you.

Once in possession of the permit;

• You will be required to take up residence by not later than one year from the issue-date of your permit.

• You must either purchase property valued at not less than Lm 50,000 (Lm 30,000 in the case of an apartment) or lease/rent property for not less than Lm 1,800 per annum. Twelve months after taking up residence in Malta, you will be required to produce evidence that you complied with this condition. While you may invest capital in Malta, investments in real estate are limited to one owner-occupied house or apartment.

• You must not exercise any occupation or profession, hold any appointment, seek employment, or engage in any form of business in Malta.

• You should not participate in political activities; however, should you be interested in local council activities you may contact the Local Council Department, at the Office of the Prime Minister.

Applications for permanent residence permits must be made on appropriate forms.

Your application must also be accompanied by:

• A certificate from your bankers (or as applicable) showing either (i) that you have an annual income equivalent to Lm 10,000 or (ii) capital equivalent to Lm 150,000. It must also certify that you will be able to import into Malta a minimum annual income of Lm 6,000 plus Lm 1,000 for each dependent.
  

• Conduct Certificate (Very very important as most delays in the issuing of the permit are held up because of the lack of this certificate)

Persons applying for a residence permit should produce conduct certificates from the Police Authorities of any country were they have resided.

Such certificate/s should indicate whether they ever had any criminal convictions or whether they have any ongoing criminal proceedings.

The persons concerned should also make a declaration on oath before a Commissioner for Oaths attesting whether they ever had any criminal convictions or whether they have any ongoing criminal proceedings.

If the Police authorities in any of the countries where applicants have resided do not issue conduct certificates, 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

together with a declaration as already specified above.

• 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.

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

• A copy of either the deed of purchase or th lease/rent agreement if you own or rent/lease property in Malta.

General Information

• The processing of applications for permanent residence permits may take from 6 to 10 weeks.

• At the end of the first year of residence and subsequently at the end of every calendar year, you will be required to complete an Annual Declaration form to confirm that you have fulfilled the conditions attached to your permit.
  

Important Note

Certain conditions are attached to such permits, amongst which are:

• Permit holders are NOT allowed to work in Malta

• Permit holders are not allowed to take up political activities in Malta.

4.       If residence has not taken up within 12 months from the issue of the certificate, then the Commissioner would refund an amount not exceeding Lm 1300.