Residence Requirements
It may be easier to get yourself moved into Malta than your pets! (Of course, I'm saying this now--June, 08--before I've even tried to establish residence in Malta. We'll see how I feel after I'm actually there.)
OK--it's a year later--October, 2009, and this is how I really feel: Please see YANKEE--and other NON-EU Citizens: Go Home!
There are lots of rules, regulations and requirements, but it's pretty straightforward. Here are your options: (Many European Union nations have similar residence requirements, but you should always check the rules for the specific nation you're interested in moving to.)
Tourist Visa
The standard tourist visa allows you stay for 90 days without being hassled. When the three months are up, you can extend your stay by either getting an extension from the police department--or by leaving Malta for a day or two and then returning for another 90 days. But if you're a NON-EU, you have to go to either England, Ireland, Tunisia, Turkey or some other place that is not in the Schengen Agreement. Just going to another EU country doesn't count.
Ninety days go by quickly. This is what you should do if you're going to try Malta out for a short time. If you're planning to really try to live here, you should plan on becoming a permanent or other type of resident (i.e., a family member of an EU national—if you meet the qualifications).
During this time you're prohibited from undertaking paid employment in Malta. Details of visa-exempt countries and the visa application procedures for other nationals are available on the Ministry of Justice and Home Affairs website (http://www.mjha.gov.mt)
Long-term visas are issued to visitors who wish to extend their stay beyond three months, and for business travelers. These are usually issued for a maximum of 12 months but are renewable.
How to Renew Your American Passport in Malta
If you live in Malta, there's good news and bad news. The good news is that you go to the American Embassy in Malta to renew your passport. The bad news: you go to the American Embassy in Malta to renew your passport.
By Ilene Springer | Published 6/15/2010
Temporary Residence
If you enter Malta as a visitor and subsequently wish to settle in the country on a temporary basis, you must apply for a Temporary Resident Permit from the Department of Citizenship and Expatriate Affairs, part of the Ministry of Justice and Home Affairs. Many expatriates live in Malta on temporary residence permits, which they renew annually. To qualify for a Temporary Resident Permit, you have to be able to provide evidence of an annual income of at least LM6,000 ($15,360) and an additional income of LM1,000 ($2,560) per dependent.
Maltese Permanent Residency: The Benefits
The first good thing is that once you become a resident, you can generally live in Malta without the fear of a visa running out all the time. The second good thing is that there's a flat 15 percent tax on income you bring into Malta. Since Malta has double-taxation treaties with many countries, you will most likely not have to pay any tax to your country of origin. If you're wealthy, this is probably very desirable. If you're not so wealthy, this tax scheme may still benefit you because it's a simple tax scheme. If you're from America, it's a significantly simpler tax scheme.
If you become a resident, you can come and go as you please. You don't have to live in Malta all the time. (Please be aware that you will not become a Maltese citizen by becoming a resident. You won't be able to vote--and you will NEVER be able to work in Malta.
Residency: The Differences
There are actually two types of residency you can seek, all depending on where you are emigrating from. They are Ordinary Residence and Permanent Residence. The only true difference between the two schemes is the amount of taxation.
Ordinary residence is restricted to people coming to Malta from any of the EU countries. Taxes are determined by taking from 0 to 35 percent of income minus a tax credit--depending on income. For married couples, this translates into a tax credit of 0 to 5,770 Euros. Example: A couple making 22,000 Euros would be taxed at 25 percent which = 5590. Then 5590 minus a credit of 3450 = tax of 2050 Euros. There are no other deductions or exemptions allowed.
For singles, this translates into a 0 to 3,990 tax credit. For example, a single person making 22,000 Euros annually would be subject to a 35 percent taxation which equals 7700 Euros. A credit of 3990 is allowed. Therefore, 7700 Euros minus 3990 = a taxation of 3710 Euros.
Permanent residence is open to all people no matter what country they originate from. If you're not from the EU, then this is the type of residency you would apply for. If you are from the EU, you can apply for this or ordinary residence. But you should consult an attorney or lawyer to determine which scheme is more applicable to your situation. If you're from the EU and don't intend to live in Malta very long-but are using Malta to establish a fiscal (tax) residence, you might consider this option because you may incur less tax this way. Also, ordinary residence is a lot easier and faster to achieve than permanent residence.
As a permanent resident, you will be taxed a flat 15 percent on income you bring into Malta. However, there is a minimum tax of 4200 Euros-even if you remit little or no income. (This would apply to people who don't bring in income but have the required amount of assets to live in Malta.) If you're an American, you're going to suffer, unfortunately, from the weak dollar. Forty-two hundred Euros comes to about $6535, as of this writing. But, as said before, at least it's a far simpler system than the American taxation system.
Ordinary residence permits are renewable every five years, while permanent residence permits are renewable every year.
Check here for a complete list of instructions for applying for Maltese Citizenship.
Sources:
Inland Revenue, Malta
www.ird.gov.mt/default.aspx
Griscti & Chetcuti, Advocates - Malta
www.malta-law.com/residence.html
