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Overseas Buyers Guide

Overseas Buyers Guide

Malta and Gozo are becoming increasingly popular investment locations for foreign investors seeking their dream 'Place In The Sun' and it's easy to see why with an abundance of cultural attractions, an incredible climate, a safe family environment with wonderful beaches and world class diving locations!

Here’s what the experts say about Malta:

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Purchase of Property by Non-Maltese Buyers

It is quite easy for a non-Maltese to purchase property in Malta and Gozo. Foreign investors will find a straight forward buying system in Malta, which is renowned in Europe for its safe and undemanding legal processes (with contracts always written in English) whilst property transfers are binding and security of title guaranteed.

Click here for our Buying Guide to Malta.

Related Property Expenses

Seller expenses:

Click here to see Seller Expenses

Buyer expenses:

Click here to see Buyer Expenses

Other property related expenses:

  • Inheritance Tax doesn’t exist in Malta but if a death occurs then a beneficiary will have to pay a 5% tax on the value of the property. If a property is jointly owned and a spouse or partner passes away then a 5% tax will only apply to half the value of the property.

Residency & Tax

Ordinary Residence

This status requires the individuals to physically live in Malta for a period of 6 month or more and the qualifying criteria are as follows:

EU & EEA Nationals:

Economic Self-Sufficiency - applicants must show that they are financially independent and not in need of any assistance from the Maltese government for them or their dependents. The current thresholds are:

Single person - minimum capital of €14,000 or a weekly income of €84.95

Married Couples - minimum capital of €23,300 or a weekly income €93.10

Employment - applicants must accept offers of employment or seek employment in Malta,work as an employee or be self-employed. Alternatively an individual my look to start their own business in Malta.

Non EU & EEA Nationals - variations in criteria

Employment - an employment license is required in-order to work in Malta. This is granted once certain conditions have been satisfied (applicants who work in Financial Services and IT sectors may find it easier to gain a license as they are highly sought after).

Self Employment - in-order to work for your own business or be self employed the applicant must meet one of the following conditions:

  • Invest a minimum of €100,000 (this must be for fixed assets such as immovable property and equipment). It cannot include rental fee, legal fees or salary considerations and specific details will be required in a Business Plan that has to be submitted with the application.
  • Highly Skilled Innovator status can be granted with a sound business plan and commitment to recruiting at least 3 EU/EEA nationals within 18 months of the start up of the business.
  • Sole representative from a overseas company (of ‘sound reputation’ and with at least a 3 years trading history abroad) seeking to open a branch in Malta
  • A director of a company that has been formally approved by Malta Enterprise and has been notified by the latter to the Employment and Training Corporation
  • Also a strong commitment to the employment of EU & EEA nationals as part of the applicant’s staff will positively assist the application.

Long-Term Residence

This may be granted to individuals who have been legally residing in Malta for 5 continuous years (meaning that applicants must not have left Malta for more than 6 months in any one year or exceeded 10 months in total over the 5 year period).

A Third Country National who has been granted long-term residential status by another Member State (other than Malta), can reside in Malta for longer than 3 months due to employed or self-employed economic activity as long as they have a employment license or are having studies or vocational training or other such activities.

Educational Residence

Temporary residence will be granted to any student in a Private School, College or at the University of Malta for the duration of their course. If any student is a minor then they will need to be accompanied by a legal guardian who in turn will need to apply for Malta residence. Any applicant will need to prove that he or she is in receipt of a stable and regular income and has accommodation for their stay.

Temporary Residence

This status is relevant if the individual is staying in Malta for no more than 183 days in a calendar year and has no intention of living in Malta permanently. In this case there is no tax to pay on foreign income and gains even if they are remitted to Malta. Tax will only be liable on income and capital gains sourced in Malta.

Income Tax

Resident foreigners are only taxed on their income sourced in Malta. Residents citizens of Malta are taxed on their worldwide income. The current tax rates are as follows:

Single rates

Income Tax Thresholds in €Tax Rate %
0-8,500 0
8,501 - 14,500 15
14,501 - 19,500 25
19,501 + 35

Married rates

Income Tax Thresholds in €Tax Rate %
0-11,900 0
11,901 - 21,200 15
21,201 - 28,700 25
28,701 + 35

Special Tax Rates for individuals working in the Financial Services & Gaming Industries.

There are extremely beneficial tax rules for Highly Qualified Employed Persons in the Financial Services & Gaming Industries. The qualifying rates are as follows:

  • €80,100 + annual income is taxable at a reduced rate of 15% (income threshold for 2013)
  • €5,000,000 + annual income is tax free (any income exceeding €5,000,000 is tax free)

Click here for the conditions

Global Residence Programme

Malta has just launched a new tax regulation called the 'Global Residence Programme'. Click here for more information.