The concept of residence in Malta is viewed from 2 perspectives: tax residence and immigration, even the process may need to be carried out separately.
Let’s take the scenarios below and explore the possible options at hand:
Coming to Malta as an employee
| EU National | Non-EU National * |
|---|---|
| No work VISA (work permit) is necessary; | A work VISA (work permit) is necessary; |
| The processes kicks-off by requesting a social security number in Malta which would eventually also generate a Maltese tax number | The process is initiated via Identity Malta and a number of matters need to be attended firstly: -Looking at whether the applicant is suitable -Adverts for the position being applied for -Looking at the possibility of applying under the Key Employee Initiative (KEI – fast tracked work permit scheme) rather than the standard Single Permit -Considering medical and X-Ray requirements |
| Following the engagement with the Employer via Jobsplus, one can proceed with applying for a residence permit with Identity Malta | Once the permit to work in Malta is granted, one would proceed with requesting a social security number in Malta which would eventually also generate a Maltese tax number |
| By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta. | By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta. |
Coming to Malta as a self-employed (freelancer)
| EU National | Non-EU National * |
|---|---|
| No work VISA (work permit) is necessary; | A work VISA (work permit) is necessary and will only be granted as long as there will be an investment of at least Euro 500,000 into the Maltese business; |
| The processes kicks-off by requesting a social security number in Malta which would eventually also generate a Maltese tax number | The process is initiated via Identity Malta and a number of matters need to be attended firstly: -Looking at whether the applicant is suitable -Adverts for the position being applied for -Looking at the possibility of applying under the Key Employee Initiative (KEI – fast tracked work permit scheme) rather than the standard Single Permit -Considering medical and X-Ray requirements |
| One is then to proceed with considering the VAT registration options according to the case at hand | Once the permit to work in Malta is granted, one would proceed with requesting a social security number in Malta which would eventually also generate a Maltese tax number |
| Following the engagement with the Jobsplus, one can proceed with applying for a residence permit with Identity Malta | By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta. |
| By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta. |
* NEW Programme for Non-EU Nationals – The Nomad Residence Permit
Through this permit, third country nationals (TCNs) will have the opportunity to work remotely from Malta for a temporary period provided they confirm that they can work remotely from any location.
The applicant would however be required to confirm that they fall under one of the following categories:
- They work for an employer registered abroad; or
- They conduct business activity for a company registered abroad, and of which they are partners or shareholders; or
- They offer freelance or consulting services to clients whose permanent establishments are in a foreign country.
In addition to the above, the applicant must reach a monthly income threshold of EUR 2,700 gross of tax and be able to provide a valid travel document, health insurance, a copy of their lease or purchase agreement in Malta and pass a background check.
This residence permit will be issued for one year. However, it may be renewed upon application at the discretion of Residency Malta, provided all eligibility criteria is still being met.
The benefit of this program is that a third country national may retain their current employment with a foreign company whilst legally residing in Malta.
Coming to Malta as an employee of certain profile – Highly Qualified Schemes
| EU National | Non-EU National * |
|---|---|
| No work VISA (work permit) is necessary; | A work VISA (work permit) is necessary, however, most probably this can be applied under the Key Employee Initiative which should allow the issuance of the work permit withing few weeks; |
| Applicable to senior positions (with certain prescribed salary) within specific local financial, gaming, innovation, aviation, maritime and gas entities; | Applicable to senior positions (with certain prescribed salary) within specific local financial, gaming, innovation, aviation, maritime and gas entities; |
| can extend the 5-year programme to 10 years for EU/EEA/Swiss nationals; | can extend the 4-year programme to 8 years for EU/EEA/Swiss nationals; |
| Successful application for the Highly Qualified Persons Rules would be entitled to a 15% flat rate on all employment income. | Successful application for the Highly Qualified Persons Rules would be entitled to a 15% flat rate on all employment income. |
Coming to Malta as self-sufficient
| EU National | Non-EU National * |
|---|---|
| Possible if one is able to support their lifestyle without the need to work in Malta; | Possible if one is able to support their lifestyle without the need to work in Malta |
| By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta | This is only for a temporary purpose and does not give comfort that it will be continually renewed; |
| By default, the tax regime to be followed would be the ordinary residence route under which income in general will be taxed at progressive tax rates. Moreover, with such a status, Malta tax will only be incurred in respect of income and capital gains arising in Malta and foreign income which is received in Malta. Therefore, any foreign income not received in Malta and any capital gains (irrespective if received in Malta or not) are not taxable in Malta. |
