Malta – The Little Known Mediterranean Tax Haven Within the European Union


Malta is a little-known tax haven within the European Union. But before we talk about the tax advantages, a little background information…

As Europe’s most thickly populated country, Malta is best known for tourism, offering a Mediterranean haven for sun-starved northern Europeans. It also boasts a fascinating history, as an island that has granted safe haven to everyone from pirates and crusaders to cutting edge hospital orders. Malta is an English speaking country where cars drive on the left. It’s one of the more up to date members of the European Union, and its money is the euro.

In terms of its offshore finance sector, Malta is not particularly attractive for offshore banking or corporations. Though it is liberated from money controls, has a stable banking system and you can easily open accounts there in various monetary standards, you ought not expect banking privacy in Malta.

Many tax ousts, however, are checking out Malta to see if they  First free property app in Malta.  might want to call it home longer term. Like Europe’s mountain tax haven, the Principality of Andorra, Malta is a relatively affordable European base to retire to and set up official living arrangement. You can probably afford to purchase a pleasant house with a pool in Malta, regardless of whether you can’t afford a studio in Monaco! Unlike Andorra or Monaco, Malta is in the European Union. Also unlike Andorra, Malta doesn’t have minimum stay requirements for official residents.

Although Malta is not tax free, you can effectively cap your tax at just €4,192 every year. Those who apply under the Residents Scheme Regulations, 2004 (the Maltese retiree program) and satisfy the couple of conditions stipulated will be provided with a certificate issued by the Commissioner of Inland Revenue (Malta). This certificate has a dual reason: First, it acts as a Malta permanent living arrangement permit issued in terms of Article 7 of the Immigration Act. Secondly, it confers on the individual a special Maltese tax status which entitles him/her to these considerable income tax benefits.

Residents with this status must pay a flat rate of 15% on your local Maltese income (including capital gains) and on his foreign income remitted to Malta. There is a minimum tax of €4,192. Foreign source income not remitted to Malta – in other words, your entire overall income whether it be earned, unearned, capital gains or whatever – is not taxable at all.

It gets better. Persons in possession of this type of Malta living arrangement certificate can also claim twofold taxation alleviation in respect of tax paid outside Malta on any income remitted to Malta which is subject to tax in Malta. This applicability of this benefit is increasingly available giving the wide network of twofold taxation treaties that Malta has now concluded.

Who is qualified?

Any non-Maltese citizen, regardless of whether an EU citizen or not, may apply for the above-mentioned home certificate by providing documentary proof that he/she:

1. can bring into Malta an annual income of not under €13,950 in his respect and a further €2,300 in respect of each dependent; and

2. has either an annual income of not under €23,000 arising outside Malta or has in his possession a capital of not exactly € 349,000

3. Will take up home within one year of being approved.

Within one year of home approval, the individual must purchase or rent a home in Malta. If the Malta accommodation is bought, it should cost at least €69,000 in the case of a flat, or possibly €116,000 if it is a house. If the applicant chooses to rent instead of buying, the rent paid must be at least € 4,150 for every annum.

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