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Permanent Residence Permits
The Permanent Residence Scheme under Malta law offers a number of incentives to foreigners interested in obtaining an indefinite Malta Residence Permit
The main incentives under the scheme are the following: -
- An attractive rate of tax
A flat tax 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, subject to a minimum annual tax liability of €4,192 . Capital gains remitted to Malta are not subject to any tax whatsoever.
- Repatriation of capital and income
It is possible for a permanent resident to repatriate the following without any formalities:
- Any unspent remainder of the income or capital brought to Malta in excess of the minimum transfer amounts in accordance with the Permanent Residence Scheme;
- Any income this has accumulated during stay in Malta;
- Any proceeds from the sale of property/other investments.
- Death duties
No death duties are payable in Malta however transfer duty is charged on the transmission of immovable property and/or any shares owned in a locally registered company (excluding shares in companies listed on the Malta Stock Exchange).
Any foreigner, of whatever nationality, may submit an application under the scheme provided that specific conditions are satisfied.
What are the conditions for eligibility?
An individual will be eligible if:
- He/she has an annual income equivalent to €23,000 arising outside Malta or capital equivalent to €349,000;
- he/she remits annually to Malta an income equivalent to €13,950 in his/her respect and €2,330 in respect of each dependant.
Who may apply for the scheme?
Any foreigner, of whatever nationality, may submit an application under the scheme provided that specific conditions are satisfied.
What are the conditions for eligibility?
An individual will be eligible if:
- He/she has an annual income equivalent to €23,000 arising outside Malta or capital equivalent to €349,000;
- he/she remits annually to Malta an income equivalent to €13,950 in his/her respect and €2,330 in respect of each dependant.
For the purposes of this scheme, dependant means:
- The spouse;
- Sons and / or daughters under 21 years of age;
- A parent or grandparent who is financially dependant on the applicant.
What conditions should be satisfied?
Once the application is approved, the applicant must within 30 days, effect payment of €4,192 being the minimum liability for the 1st year of residence in Malta. Such amount will be available as a credit against the applicant’s actual tax liability for that year. The permanent residence certificate will be issued upon payment of the aforesaid amount within the stipulated time period.
Once in possession of a certificate the holder
- is required to take up residence by not later than one year from the issue date of the certificate. The holder has to complete a prescribed document which has to be presented together with identification documents to the Department of Inland Revenue, Expatriates Division, within 15 days of arriving in Malta. Should the applicant not take up residence within 12 months from date of issue of the certificate and such certificate be withdrawn, the amount of €2,985 from the amount of €4,192 paid will be refunded.
- must either purchase immovable property valued at not less than €116,000 (€69,000 in the case of an apartment), or lease/rent immovable property for not less than €4,150 per annum within twelve months of taking up residence in Malta.
- A parent or grandparent who is financially dependant on the applicant.
The application process
Applications for a permanent resident certificate must be made on the appropriate prescribed form. The application must also be accompanied by:
- A certificate from the applicant’s bankers (or other professional adviser) showing either (i) that he/she has an annual income equivalent to €23,000 arising outside Malta; or (ii) capital equivalent to €349,000. It must also certify that the applicant will be able to import into Malta a minimum annual income of €13,950 plus €2,300 for each dependant.
- A Conduct certificate, in respect of each adult (18 years or over) whose name appears on the said application, from the Police authorities of the country where the applicant and his/her dependants have resided
- Such certificate/s should indicate whether the applicant/dependants have ever had any criminal convictions or whether the applicant/dependants have any ongoing criminal proceedings
- If the certificate/s issued by the Police authorities do not contain such information, the applicant/dependants should make a declaration on oath before a Commissioner for Oaths attesting whether the applicant and his dependants, if any, have ever had any criminal convictions or have any ongoing criminal proceedings.
- If the Police authorities in any of the countries where the applicant/dependant has resided do not issue conduct certificates, character references are required from any three of the following
- banker
- solicitor
- medical practitioner;
- employer (or previous employer);
- accountant; or
- any person of a similar standing, together with the 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.
- A written declaration by the applicant stating that parents and/or grandparents are financially dependent on him/her (where applicable).
- Three passport-sized photographs and photocopies of the relevant pages of passport/identification card of each person whose name appears on the application form.
- A copy of either the deed of purchase or the lease/rent agreement if the applicant already owns or has leased/rented immovable property in Malta
- The supporting documents, indicated under notes 2 to 5 above, attached to the application MUST be certified original documents attested for correctness by a warranted notary public of the country of nationality. Furthermore, all supporting documents must be legalized by the Ministry of Foreign Affairs of the country of nationality and counter-legalized by an official of the Malta Diplomatic Mission in the country of nationality.
- An administrative fee of €115, or equivalent in foreign currency, is charged by the Malta Diplomatic Mission against an official receipt, for the processing of the application and its transmission to Malta. This fee is not refundable even in those instances where the Commissioner refuses the application.
The processing of applications under the scheme normally takes about 3 months
Annual Requirements
A permanent resident will be required to complete a tax return and specific attachments to confirm that he/she has fulfilled all the conditions attaching to the permit, in respect of each calendar year in which he was resident in Malta under the scheme.
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