Purchase of Property by Non-Maltese Buyers
It’s easy for a non-Maltese person to purchase property in Malta and Gozo. Foreign investors will find a straightforward 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 to read our Guide To Buying Property In Malta
Property Related Expenses
Seller Expenses – click here to see our list of seller related expenses
Buyer Expenses – click here to see our list of buyer related expenses
Other Property Related Expenses
Inheritance Tax – No tax is due at the ‘Declaration Stage’, but when the property is sold the owner will have to pay 12% tax on the difference between the declared value (Declaration Causa Mortis Deed) and the actual sale price.
Residency & Tax in Malta
This status requires the individuals to physically live in Malta for a period of 6 months 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 – a minimum capital of €14,000 or a weekly income of €84.95
Married Couples – a 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 may look to start their own business in Malta.
Non-EU & EEA Nationals:
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 startup of the business.
- Sole representative from an 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 in Malta
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 an employment license or are having studies or vocational training or other such activities.
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.
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.
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:
|Income Tax Thresholds in €
||Tax Rate %
|8,501 – 14,500
|14,501 – 19,500
|Income Tax Thresholds in €
||Tax Rate %
|11,901 – 21,200
|21,201 – 28,700
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
In recent years Malta has launched a new tax regulation called the Global Residence Programme