Taking up residence in Malta An expatriate may take up residence in Malta on obtaining a permanent residence permit from the Minister responsible for immigration. Permit Holders are entitled to pay income tax at the favourable flat rate of 15% calculated on income and capital gains arising in Malta and on foreign income remitted to Malta, excluding capital gains. Income and Capital Requirements For a person to qualify for eligibility of a permanent residence permit the following conditions have to be satisfied: - annual income of at least Lm10,000 (Euros 23,000) arising outside Malta, or a minimum capital possession of Lm150,000 or the equivalent in foreign funds (Euros 350,000); - Applicant must also prove that he would be able to remit to Malta a minimum annual income of Lm6,000 (Euros 14,000) for a single person plus Lm1,000 (Euros 2,300) for each dependent; The minimum tax liability for resident permit holders is set at one thousand eight hundred Maltese liri (Lm1,800) (Euros 4,500) and covers all members of the family. Taking Up Residence The permit holder must take up residence within 12 months from the issue of the permit and for this purpose the permit holder must purchase property in Malta or else he must lease a property at not less than Lm1,800 (Euros 4,500) per annum. The funds to finance the purchase must emanate from outside Malta and the property purchased must be used solely as a residence for the permit holder and his family. The permit holder may not engage in gainful occupation or other business activities in Malta unless duly authorised by the Office of the Prime Minister. He is also prohibited from taking part in local politics. Since the residence permit is issued on an indefinite basis there is no minimum period of presence in Malta which is required of the permit holder in order to benefit from the fiscal concessions and other advantages available. Double Taxation Relief A permit holder can also benefit from a double taxation relief in respect of tax levied outside Malta on any income remitted to Malta, however this all depends on whether a double tax treaty has been concluded by Malta with the country concerned. Malta has concluded, to date, 41 double taxation treaties. Exemption from Customs Duty and VAT Used personal household effects may be imported free of customs duties if imported within 6 months of taking up residence in Malta. This also applies to one private motor-vehicle which would therefore not be subjected to any import duty or VAT, provided the vehicle was in the permit holder’s ownership for a continuous period of at least 6 months prior to obtaining the residence permit. Application Process The application for acquiring a residence permit will include a number of documents mainly relating to the personal and financial status of the applicant and must be accompanied by the payment of a nominal fee. 
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