Residents Scheme

Residents Scheme
The Scheme is regulated by the Residents Scheme Regulations, 2004.
Those that satisfy the conditions of the scheme will be issued with a certificate from the Commissioner of Inland Revenue. Not only does the certificate entitle the holder to the benefits of the Residency Scheme but it is also a permit in terms of article 7 of the Immigration Act and thus allows the holder to reside in Malta subject to conditions specified in the regulations.

Income Tax Benefits
A flat rate of 15% on all income received in Malta or brought into Malta whether from local or foreign sources (as regulated by Article 56 (10) of the Income Tax Act) with a minimum tax payment of Eur4,200 (Lm1803.06) per year.

Article 56(10) Residence Certificate
Once an application is approved, the applicant is obliged to pay Eur4,200(Lm1803.06) tax by not later than 30 days from such approval. The amount of tax paid will be held on account and credited in the first year of assessment for which a tax return is required.

A residence certificate shall be issued by the Commissioner, within 30 days from such payment. The certificate will entitle the holder to reside permanently or indefinitely in Malta but it does not entitle him/her to any of the rights mentioned in the Immigration Regulations, 2004.

The certificate shall be withdrawn if the applicant does not take up residence within 12 months from its date of issue. In these circumstances the applicant will be entitled to a refund not exceeding Eur3,028 (Lm1300) of the tax paid.

If the holder of a certificate is a Citizen of the Union as defined in the Immigration Regulations, 2004, he/she may at any time opt to renounce to such certificate and apply for a residence permit or a residence document under the Immigration Regulations, 2004 in which case the provisions of those Regulations shall apply. When such option is exercised the applicant will still be liable to the minimum tax liability of Eur4,200 (Lm1803.06) for that particular year.

The certificate shall be deemed to have been withdrawn with immediate effect if the holder of the certificate is issued with a residence permit or a residence document in terms of Regulation 9 of the Immigration Regulations, 2004.

The certificate shall be monitored annually and it shall be considered as having been withdrawn if the holder infringes any condition stipulated in the Regulations.