It can be easier to move yourself to Malta than you care! There are a lot of rules, regulations and requirements, but it’s pretty straightforward. Here are your options: (Many European Union countries have similar residency requirements, but you should always check the rules in the specific country you are interested in moving to).
Tourist Visa
Standard tourist visa allows you to stay for 90 days without being hassled. When the three months are up, you can extend your stay or extend the agency from the police department. – or leaving Malta for a day or two and then returning for another 90 days.
Ninety days go by fast. This is what you should do if you are going to try Malta for a while. If you think that you really want to live here, you should think about becoming a permanent resident.
The Seat of Malta: The Benefits
The first good thing is that once you become a resident, you can generally live in Malta without the fear of running out of visas all the time. The second good thing is that there is a flat tax in Malta. Since Malta has dual treaties with many countries, you probably won’t have to pay any tax to your country of origin. If you’re rich, maybe you should opt for it. If you are not that rich, this tax system will still benefit you, because it is a simple tax on public property. If you are from America, the tax is significantly simpler.
If you become a resident, you may come and go as you please. You don’t have to live in Malta all the time. (Please note that you will not become a resident Maltese citizen. You will not be able to vote).
Seats: Differences
There are actually two types of residency that you should be looking for, regardless of where you are moving from. They are ordinary Residency and Permanent Residency. The only real difference between the two schemes is taxation.
Ordinary residence is restricted to Malta coming from any European countries. Taxes are determined from 0 to 35 percent of income, less the tax credit – depending on income. For couples, this translates into a tax credit of 0 to 5,770 cash. For example: Two thousand two thousand in cash would be taxed at 25 percent which = 5590. Then 5590 less credits 3450 = revenue 2050 cash. No other deductions or exemptions are allowed.
For hate, this translates into a 0 to 3,990 tax credit. For example, a single person making 22,000 cash every year making a 35 percent annual tax, which is equal to 7700 cash. A credit of 3990 was allowed. Therefore, 7700 coins minus 3990 = a tax of 3710 coins.
Permanent residence permanent is open to all people regardless of their country of origin. If you are not from the EU, you will apply for this type of residence. If you are from the EU, you can apply for this or ordinary residence. However, you should consult an attorney or a lawyer as to which method is more relevant to your situation. If you are from the EU and do not intend to live in Malta for a long time but use Malta to establish fiscal residency, you should consider this option because you will incur less tax this way. Also, ordinary residence is much easier and faster to obtain than permanent residence.
As a permanent resident, you will be taxed at a flat rate of 15 percent in Malta. However, the minimum is tax 4200 coins-even if you refund little or no tax. (This applies to people who don’t file taxes but have enough assets to live in Malta.) If you’re American, you’ll suffer, unfortunately, from the weak dollar. Forty-two hundred dollars is about $6,535 as of this writing. But, as I said before, it is certainly a much simpler system than the American tax system.
Ordinary residence permits are renewable every five years, while permanent residence permits are renewed annually.
Coming Soon: Part 2 — Maltese Residency: Requirements
Sources:
Internal Revenue, Malta
www.ird.gov.mt/default.aspx
Griscti & Chetcuti, Advocate – Malta
www.malta-law.com/residence.html
