Msida
EY
Regional Business Centre
Achille Ferris Street
Msida MSD1751
Malta
Executive, immigration and Private Client Services contacts
Robert Attard
Christopher J. Naudi
+356 2134-2134, +356 2347-1458
Fax: +356 2133-0280
Email: robert.attard@mt.ey.com
+356 2134-2134, +356 2347-1440
Fax: +356 2133-0280
Email: chris.naudi@mt.ey.com
A. Income tax
Who is liable. Persons who are both ordinarily resident and domi ciled in Malta are subject to tax on their worldwide income and chargeable capital gains. Persons who are either not ordinarily resident in Malta or not domiciled in Malta are subject to tax only on Maltese-source income and on foreign income that is remitted to or received in Malta.
In practice, individuals generally are considered resident in Malta if they spend more than 183 days in a calendar year in Malta. Individuals are considered ordinarily resident if Malta is their habitual residence.
Individuals are deemed to be domiciled in Malta if they settle in Malta with the purpose of living in Malta for good and consider Malta to be their permanent home.
An individual cannot apply the remittance basis of taxation if any of the following circumstances exists:
• His or her spouse or partner in a registered civil union is ordi narily resident and domiciled in Malta.
• He or she is a long-term resident as defined in the Status of Long-Term Residents (Third Country Nationals) Regulations.
• He or she is the holder of a permanent residence certificate or a permanent residence card issued in accordance with the Free Movement of European Union (EU) Nationals and their Family Members Order.
Individuals applying the remittance basis of taxation may be lia ble to pay a minimum tax liability. See Rates for further details.
Article 29 (2) of the Income Tax Act (ITA) provides that income derived by an owner, lessor or operator of an aircraft or aircraft engine engaged in the international transport of passengers or goods is deemed to arise outside Malta, regardless of the fact that the aircraft may have called at or operated from an airport in Malta.
Income subject to tax. The taxation of various types of income is described below.
Employment income. Taxable employment income consists of gains or profits from any employment or office, including direc tors’ fees and fringe benefits provided because of an employment or office, such as the granting of the following:
• The private use of a motor vehicle
• The use of immovable and movable property
• Other benefits granted as a result of the nature of the employ ment or office
Article 56 (17) of the ITA provides for favorable tax treatment of employment income derived under an employment contract requiring the performance of work or of duties mainly outside Malta. At the taxpayer’s option, income arising from such an employment contract is taxable at a rate of 15%. The scheme is available to any individual. Specific conditions must be satisfied for the system to apply.
The beneficial tax treatment described in the preceding para graph does not apply to income derived from services rendered on ships, aircraft or road vehicles owned, chartered or leased by Maltese companies and to government services.
Income taxed under Article 56 (17) of the ITA is deemed to con stitute “the first part of that individual’s total income for that year” for computational purposes. Under this measure, if the individual derives income from other sources, such income is taxed at the progressive rates applicable to the portion of the income in excess of the income taxed at 15% (that is, any surplus income is not taxed at the progressive rates beginning at 0%; instead, it is taxed at the higher progressive rates applicable to the subsequent tax brackets).
Highly Qualified Persons Rules. The Highly Qualified Persons Rules provide a beneficial tax system for persons who receive emoluments payable under a qualifying employment contract. This measure provides for a potentially favorable tax rate of 15%, which can be applied at the option of the taxpayer. The 15% rate may be used with respect to income derived both from work duties carried out in Malta and from work duties performed outside Malta in connection with work duties in Malta. Persons who may benefit from these rules are highly qualified individuals who re ceive employment income of a minimum of EUR86,938 (exclu sive of the annual value of any fringe benefits and as adjusted annually in line with the Rental Price Index) from an eligible office.
The tax benefit consists in the right to elect to pay tax at a rate of 15% on income from a qualifying employment contract. No fur ther Malta income tax at the prescribed rate of 15% is chargeable on the income earned by individuals from a qualifying employment contract exceeding EUR5 million. The rate of 15% applies without the possibility to claim any relief, deduction, reduction, credit or setoff.
To benefit from the tax system described above, an individual must meet all of the following conditions:
• He or she must derive income subject to tax under Article 4(1) (b) of the ITA, which are emoluments payable under a qualifying employment contract.
• He or she is protected as an employee under Maltese law and has the required adequate and specific competence, as proven to the satisfaction of the Malta Financial Services Authority (in the case of financial services), the Malta Gaming Authority (in the case of gaming services), Transport Malta (in the case of aviation services), or the office of the Chief Medical Officer to the Government (in the case of medical services).
• He or she proves to the satisfaction of the Malta Financial Services Authority (in the case of financial services), the Malta Gaming Authority (in the case of gaming services), Transport Malta (in the case of aviation services) or the office of the Chief Medical Officer to the Government (in the case of medical services) that he or she possesses professional qualifications and has at least five years of professional experience.
• He or she has not benefitted under Article 6 of the ITA, which provides for certain fringe benefit exemptions.
• He or she fully discloses for tax purposes and declares emolu ments received with respect to income from a qualifying employment contract.
• He or she proves to the satisfaction of the Malta Financial Services Authority (in the case of financial services), the Malta Gaming Authority (in the case of gaming services), Transport Malta (in the case of aviation services) or the office of the Chief Medical Officer to the Government (in the case of medical services) the following:
— He or she performs activities of an eligible office (see below).
— He or she receives stable and regular resources that are suf ficient to maintain himself or herself and the members of his or her family without recourse to the social assistance sys tem in Malta.
— He or she resides in an accommodation that is regarded as normal for a comparable family in Malta and that meets the general health and safety standards in force in Malta.
— He or she possesses a valid travel document.
— He or she possesses sickness insurance with respect to all risks normally covered for Maltese nationals for himself or herself and the members of his or her family.
— He or she is not domiciled in Malta.
For purposes of the above beneficial tax system, the following offices with companies licensed and/or recognized by the Malta Financial Services Authority (in the case of financial services), the Malta Gaming Authority (in the case of gaming services) or Transport Malta (in the case of aviation services) are considered eligible offices:
• Chief Executive Officer, Chief Risk Officer (including Fraud and Investigations Office), Chief Financial Officer, Chief Operations Officer (including Aviation Accountable Manager), Chief Technology Officer and Chief Commercial Officer
• Portfolio Manager, Chief Investment Officer, Senior Trader/ Trader, Senior Analyst (including Structuring Professional), Actuarial Professional, Chief Underwriting Officer, Chief Insurance Technical Officer and Odds Compiler Specialist
• Aviation Continuing Airworthiness Manager, Aviation Flight Operations Manager, Aviation Ground Operations Manager and Aviation Training Manager
• Head of Marketing (including Head of Distribution Channels), Head of Investor Relations and Head of Research and Development (including Search Engine Optimization and Systems Architecture)
The benefit is also available to individuals employed as a Chief Executive Officer with an entity holding an aerodrome license and individuals employed in the Assisted Reproductive Technology sectors as embryologists, responsible persons or lead quality managers.
The benefit applies for a specific number of years (five years with respect to European Economic Area [EEA] and Swiss nationals and four years with respect to third-country nationals) from the date of first election, and it may be clawed back retro spectively if the expatriate’s stay in Malta is not in the public interest.
On submitting an application, the person is eligible for two fur ther extensions of four or five years, as the case may be, for the qualifying period, subject to the continued adherence to the other provisions of these rules.
The Maltese tax authorities will not issue a determination regarding the above after 31 December 2025, and any such determina tion issued must refer to any employment in respect of which the benefit provided by these rules commences by 31 December 2026 and ceases to apply by 31 December 2030.
Qualifying employment in aviation rules. The qualifying employ ment in aviation rules provide that if an individual derives income of at least EUR45,000 from a qualifying employment contract, such income may be subject to tax at a flat rate of 15%.
No further Malta income tax at the prescribed rate of 15% is chargeable on the income earned by individuals from a qualify ing employment contract exceeding EUR5 million. The rate of 15% applies without the possibility to claim any relief, deduc tion, reduction, credit or setoff.
• He or she is an individual who derives income subject to tax under Article 4(1)(b) of the ITA, which consists of emoluments payable under a qualifying contract (see below), and such income is received with respect to work or duties carried out in Malta, with respect to any period spent outside Malta in con nection with such work or duties or while on leave during the carrying out of such work or duties.
• He or she is protected as an employee under Maltese law, regardless of the legal relationship, for the purpose of exercis ing genuine and effective work for, or under the direction of, someone else, is paid and has the require adequate and specific competence, as proven to the satisfaction of the competent authority.
• He or she proves to the satisfaction of the competent authority that he or she is in possession of professional qualifications or experience.
• He or she fully discloses for tax purposes and declares emolu ments received with respect to income from a qualifying
employment contract and all income received from a person related to his or her employer that pays out income from a qualifying contract chargeable to tax in Malta.
• He or she proves to the satisfaction of the competent authority that he or she performs activities of an eligible office.
• He or she proves to the satisfaction of the competent authority the following:
— He or she is in receipt of stable and regular resources that are sufficient to maintain himself or herself and the members of his or her family without recourse to the social assistance system in Malta.
— He or she resides in an accommodation that is regarded as normal for a comparable family in Malta and that meets the general health and safety standards in force in Malta.
— He or she is in possession of a valid travel document.
— He or she is in possession of sickness insurance with respect to all risks normally covered for Maltese nationals, and such insurance covers himself or herself and members of his or her family.
— He or she is not domiciled in Malta.
For purposes of the above beneficial tax system, the following offices with companies licensed and/or recognized by Transport Malta are considered eligible offices, to the effect that any employment contracts providing for these employment activities are considered qualifying contracts:
• Chief Executive Officer, Chief Operations Officer, Chief Financial Officer, Chief Risk Officer, Chief Technology Officer, Chief Commercial Officer, Chief Investment Officer, Chief Insurance Officer, Accountable Manager, Deputy Accountable Manager and General Manager
• Flight Operations Manager, Nominated Person Flight Operations, Training Manager, Nominated Person Training, Ground Operations, Nominated Person Ground Operations, Continuing Airworthiness Manager, Nominated Person Continuing Airworthiness, Compliance Manager, Quality Systems Manager, Safety Manager, Flight Dispatch Manager and Instructor Manager
• Head of Marketing, Head of Public Relations, Actuary, Underwriting Manager, Risk Management Officer, Key Account Manager, Product Coordinator, Material Coordinator, Engineering Reporter, Aeronautical Engineer, Head of Maintenance Operations, Aviation Systems Developer and Key Aviation Specialist
The benefit applies for a specific number of years from the date of first election, and it may be clawed back retrospectively if the expatriate’s stay in Malta is not in the public interest.
On submitting an application, the person is eligible for a onetime extension to the qualifying period, subject to the continued adherence to the other provisions of these rules.
Qualifying employment in innovation and creativity. The rules provide that if an individual derives income of at least EUR52,000 from a qualifying employment contract, such income may be subject to tax at a flat rate of 15%. The rate of 15% applies
without the possibility to claim any relief, deduction, reduction, credit or setoff.
To benefit from the 15% flat rate, an individual needs to satisfy all of the following conditions:
• He or she is an individual who derives income subject to tax under Article 4(1)(b) of the ITA, which consists of emoluments payable under a qualifying contract (see below), and such income is received with respect to work or duties carried out in Malta and with respect to any period spent outside Malta in connection with such work or duties or while on leave during the carrying out of such work or duties.
• He or she is protected as an employee under Maltese law, regardless of the legal relationship, for the purpose of exercising genuine and effective work for, or under the direction of, someone else, is paid and has the required adequate and spe cific competence, as proven to the satisfaction of the competent authority.
• He or she proves to the satisfaction of the competent authority that he or she is in possession of professional qualifications or experience.
• He or she is not an individual who has benefited under Article 6 of the ITA.
• He or she fully discloses for tax purposes and declares emolu ments received with respect to income from a qualifying employment contract and all income received from a person related to his or her employer that pays out income from a qualifying contract chargeable to tax in Malta.
• He or she proves to the satisfaction of the competent authority that he or she performs activities of an eligible office.
• He or she proves to the satisfaction of the competent authority the following:
— He or she is in receipt of stable and regular resources that are sufficient to maintain himself or herself and the members of his or her family without recourse to the social assistance system in Malta.
— He or she resides in an accommodation that is regarded as normal for a comparable family in Malta and that meets the general health and safety standards in force in Malta.
— He or she is in possession of a valid travel document.
— He or she is in possession of sickness insurance with respect to all risks normally covered for Maltese nationals, and such insurance covers himself or herself and members of his or her family.
— He or she is not domiciled in Malta.
A qualifying contract is one which provides for a role directly engaged in the carrying out or the management of research, development, design, analytical or innovation activities, as fur ther specified in guidelines issued by Malta Enterprise.
The benefit applies for a specific number of years from the date of first election, and it may be clawed back retrospectively if the expatriate’s stay in Malta is not in the public interest.
However, the Maltese tax authorities will not issue a determina tion regarding the above after 31 December 2025, and no benefit may be availed after the 2030 year of assessment.
Qualifying employment in maritime activities and the servicing of offshore oil and gas industry activities. The rules provide that if an individual derives income of at least EUR65,000 from a qualify ing employment contract, such income may be subject to tax at a flat rate of 15%. No further Malta income tax at the prescribed rate of 15% is chargeable on the income earned by individuals from a qualifying employment contract exceeding EUR5 million. The rate of 15% applies without the possibility to claim any relief, deduction, reduction, credit or setoff.
To benefit from the 15% flat rate, an individual needs to satisfy all of the following conditions:
• He or she is an individual who derives income subject to tax under Article 4(1)(b) of the ITA, which consists of emoluments payable under a qualifying contract (see below), and such income is received with respect to work or duties carried out in Malta and with respect to any period spent outside Malta in connection with such work or duties or while on leave during the carrying out of such work or duties.
• He or she is protected as an employee under Maltese law, regardless of the legal relationship, for the purpose of exercising genuine and effective work for, or under the direction of, someone else, is paid and has the required adequate and spe cific competence, as proven to the satisfaction of the competent authority.
• He or she proves to the satisfaction of the competent authority that he or she is in possession of professional qualifications or experience.
• He or she fully discloses for tax purposes and declares emolu ments received with respect to income from a qualifying employment contract and all income received from a person related to his or her employer that pays out income from a qualifying contract chargeable to tax in Malta.
• He or she proves to the satisfaction of the competent authority that he or she performs activities of an eligible office.
• He or she proves to the satisfaction of the competent authority the following: He or she is in receipt of stable and regular resources that are sufficient to maintain himself or herself and the members of his or her family without recourse to the social assistance system in Malta.
— He or she resides in an accommodation that is regarded as normal for a comparable family in Malta and that meets the general health and safety standards in force in Malta.
— He or she is in possession of a valid travel document.
— He or she is in possession of sickness insurance with respect to all risks normally covered for Maltese nationals, and such insurance covers himself or herself and members of his or her family.
— He or she is not domiciled in Malta.
For purposes of the above beneficial tax system, the following offices are considered eligible offices if they are held with any undertaking holding a Document of Compliance (DOC) issued in accordance with the International Safety Management (ISM) Code or a Seafarer Recruitment and Placement Services License issued in accordance with the Maritime Labour Convention, 2006 or any undertaking engaging the particular individual for
work onboard any ship, other than those specifically excluded by the rules, or any undertaking that carries on mainly a trade or business consisting in the servicing of the offshore oil and gas and ancillary services industry:
• For maritime activities: Chief Executive Officer, Chief Operations Officer, Managing Director, Chief Financial Officer, General Manager, Crewing Manager, Technical Manager, Technical Ship Superintendent, Designated Person Ashore, Master, Chief Mate, Second Officer, Chief Engineer, Second Engineer and Chef
• For the offshore oil and gas and ancillary services industry: Chief Executive Officer, Chief Operating Officer and Head of Training Academy. The benefit applies for a specific number of years from the date of first election, and it may be clawed back retrospectively if the expatriate’s stay in Malta is not in the public interest.
Self-employment and business income. Taxable self-employment and business income is based on accounting profits, adjusted for tax purposes. Tax adjustments include the addition of disallow able expenses, such as accounting depreciation, amortization of goodwill, movements in certain corporate-related provisions, donations, stamp duty expense and startup expense.
Taxable self-employment and business income is aggregated with other income and taxed at the rates set forth in Rates
Investment income. Malta operates a full imputation system under which dividends paid by a company resident in Malta out of its taxed profits carry a tax credit equal to the tax paid by the com pany on the profits out of which the dividends are paid. Shareholders are taxed on the gross dividend at the regular rates, but are entitled to deduct the tax credit attaching to the dividend against their total income tax liability. The full imputation system applies to both residents and nonresidents. If a dividend is paid out of the Untaxed Account (the difference between tax and accounting profits), a 15% withholding tax is imposed. In gen eral, this withholding tax does not apply to nonresidents. Dividends paid out of profits exempt from tax, which do not fall in the Untaxed Account, are not taxable in the hands of the share holders.
Resident individuals may choose to pay a 15% withholding tax on bank interest and other forms of investment income. Interest, royalties, premiums and discounts paid to nonresidents are exempt from tax in Malta unless such income is effectively con nected with a permanent establishment in Malta through which the nonresidents engage in a trade or business.
In general, rental income is taxed with other income at the rates set forth in Rates. Limited deductions are available against rental income in the determination of chargeable income (see below). However, individuals deriving rental income from the leasing of residential and certain commercial tenements may choose to pay a 15% final tax on the gross rental income received. This 15% rate is considered a final tax and is not available for credit or setoff.
A person who, in the year immediately preceding the year of assessment, derives rental income from a registered private residential lease with a duration of two years or more and opts to charge that income to tax by applying the 15% final tax on gross rental income, is entitled to a tax rebate. The applicable rebate is determined by reference to the duration of the registered private residential lease and the number of bedrooms of the leased prem ises and ranges from EUR200 to EUR500 per lease.
A special withholding tax rate of 5% applies if an individual rents immovable property to the Housing Authority for a period of not less than 10 years. The 5% tax is applied to the gross rental income received. It is considered a final tax and is not available for credit or setoff. The tax is withheld by the Housing Authority from payments made and remitted to the Commissioner for Revenue by the 14th day following the end of the month in which the rent is paid.
A special final tax rate of 10% may also apply with respect to particular rental income.
If the rental income is not subject to a final tax, bank interest, license fees and rents payable may be deducted if incurred in the production of passive rental income. An additional 20% maintenance allowance, calculated on the difference between rents receivable and rents and license fees payable, may be taken. Each property is treated as a separate source of income. Losses from one property may not offset income from another.
Tax schemes for high-net-worth individuals. Non-Maltese indi viduals who meet several conditions may benefit from a special tax status. Special tax status implies the right to pay tax at 15%. The 15% tax rate does not apply to local-source income and capital gains. An obligation to pay minimum tax applies.
Residence program for EU/EEA and Swiss nationals. An EU/ EEA or Swiss national may benefit under this system if such person proves to the satisfaction of the Commissioner for Revenue the following:
• He or she holds a qualifying property with the following value thresholds:
— Owned property of not less than EUR275,000 for a property located in Malta (EUR220,000 for a property located in Gozo or in the south of Malta)
— Rented property of not less than EUR9,600 per year for a property located in Malta (EUR8,750 per year for a prop erty located in Gozo or in the south of Malta)
• He or she does not benefit under any other scheme.
• He or she is neither a Maltese national nor a third-country national. The special law contains a special definition of this term. For the purposes of this law, EEA and Swiss nationals are not considered third-country nationals.
• He or she is in receipt of stable and regular resources that are sufficient to maintain himself or herself and his or her depen dents without recourse to social assistance in Malta.
• He or she is in possession of a valid travel document.
• He or she is in possession of sickness insurance with respect to all risk across the whole of the EU that is normally covered for
Maltese nationals for himself or herself and his or her dependents.
• He or she can adequately communicate in one of the official languages of Malta.
• He or she meets a fit and proper test.
Beneficiaries under the scheme have the right to pay tax at 15% on their foreign-source income, that is received in Malta, subject to a minimum tax of EUR15,000 per year.
The law prescribes the following circumstances that would result in loss of status:
• The individual has a lack of holding of qualifying property.
• The individual becomes a Malta or a third-country national.
• The individual becomes a permanent resident of Malta.
• The individual does not possess sickness insurance for himself or herself and his or her dependents after the appointed date.
• The individual’s stay is not in the public interest.
• The individual stays in another jurisdiction for more than 183 days in a calendar year.
Beneficiaries are subject to reporting obligations.
Global residence program for non-EU/EEA and non-Swiss nationals. The conditions and characteristics of the global resi dence program for non-EU/EEA and non-Swiss nationals are almost identical to those applicable to EU/EEA or Swiss Nationals, subject to some exceptions.
Beneficiaries under this scheme can also benefit from a 15% tax rate on income arising outside Malta, including foreign-source income that is received in Malta. Beneficiaries are liable to a minimum tax of EUR15,000 per year.
The law prescribes the following circumstances that would result in a loss of status under the scheme:
• The individual becomes a Maltese, EU, EEA or Swiss national.
• The individual has a lack of holding of qualifying property.
• The individual becomes a long-term resident of Malta.
• The individual does not possess sickness insurance for himself or herself and his or her dependents after the appointed date.
• The stay is not in the public interest.
• The individual stays in another jurisdiction for more than 183 days in a calendar year.
The Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment. This program is regulated by the Granting of Citizenship for Exceptional Services Regulations (S.L. 188.05), which allows for the granting of citizenship by a certificate of naturalization to foreign individuals and their families who contribute to the economic development of Malta. These regulations are being administered by a newly founded govern ment agency, the Community Malta Agency. Like the Malta Individual Investor Programme, every application is subject to a stringent due diligence process, including thorough background checks.
Individuals interested in pursuing a Maltese Citizenship Application must go through the following three main stages:
• Residency Stage
• Citizenship Eligibility Stage
• Citizenship Stage
Applicants have the option of choosing a three-year residence route or a one-year residence route before submitting the citizen ship application. The applicant’s option must be made clear when applying for residence permit. Prospective applicants are only eligible to apply for citizenship under the new program as main applicants only if the following requirements are satisfied:
• They must be at least 18 years of age.
• They must meet the application requirements, which include the purchase of property in Malta with a minimum amount of EUR700,000 or lease a property in Malta with a minimum amount of EUR16,000, as provided under the new regulations (to be retained for a minimum period of five years from the date the Certificate of Naturalisation is issued).
• They must commit to provide proof of residence for a period of 12 months or 36 months before becoming eligible to apply for citizenship, as provided under the new regulations.
• They need to invest EUR750,000 (after one year of residence) or EUR600,000 (after having three years in Malta).
• They must commit to donate a minimum of EUR10,000 to a registered philanthropic organization, as provided under the new regulations.
If the applicant goes for the one-year residency route, the following investment requirements need to be met:
• Main contribution: EUR750,000 for main applicant, and EUR50,000 per dependent individual
• Real estate investment: EUR700,000 (purchase of property) or minimum EUR16,000 annually (in the case of a lease of prop erty)
• Donation to a registered philanthropic organization: minimum of EUR10,000
If the prospect goes for the three-year residency route, the follow ing investment requirements need to be met:
• Main contribution: EUR600,000 for main applicant, and EUR50,000 per dependent individual
• Real estate investment: EUR700,000 (purchase of property) or minimum EUR16,000 annually (in the case of a lease of prop erty)
• Donation to a registered philanthropic organization: minimum of EUR10,000
Repatriation of Persons Established in a Field of Excellence Rules. The Repatriation of Persons Established in a Field of Excellence (RPEFE) Rules prescribe that an individual who is established in a field of excellence and returns as an ordinary resident in Malta may elect to have his or her income from employment exercised in Malta charged to tax at a flat rate of 15%.
A person may benefit under this system if all of the following conditions are satisfied:
• His or her income is derived from a qualifying employment contract.
• He or she is an eligible person who receives employment income and emoluments (exclusive of the annual value of any fringe benefits) of EUR75,000 or more and is the beneficiary of such items.
A qualifying contract is an employment contract approved in writing by the Malta Enterprise Corporation.
An eligible person is an individual who is established in a field of excellence and returns as an ordinary resident in Malta if he or she had been ordinarily resident in Malta for at least 20 years but has not been ordinarily resident in Malta for the 10 consecutive years before his or her return to Malta.
A field of excellence is an area of professional competence in which an eligible person has excelled that is relevant for the manufacturing and research and development sectors, as defined in guidelines that may be issued by Malta Enterprise Corporation in accordance with the Malta Enterprise Act.
A beneficiary is an eligible person who, to the satisfaction of the Malta Enterprise Corporation, meets all of the following condi tions:
• He or she is an individual who derives income subject to tax under Article 4(1)(b) of the ITA, which consist of income and emoluments payable under a qualifying employment contract and received with respect to the following:
— Work or duties carried out in Malta.
— A period spent outside Malta that is related to such work or duties.
— Leave during the carrying out of such work or duties.
• He or she proves to the satisfaction of Malta Enterprise Corporation that he or she possesses educational and/or profes sional qualifications that are relevant in the profession or sector specified in the binding job offer or in the qualifying employ ment contract, as may be further defined in guidelines issued by the Malta Enterprise Corporation in accordance with the Malta Enterprise Act.
• He or she is protected as an employee under Maltese law, regardless of the legal relationship, for the purpose of exercis ing genuine and effective work for, or under the direction of, someone else, is paid, and has the required adequate and spe cific competence, as proven to the satisfaction of the Malta Enterprise Corporation.
United Nations Pensions Programme Rules. Under the United Nations (UN) Pensions Programme Rules, following the granting of the special tax status, a beneficiary’s UN pension income or widow’s/widower’s benefit received in Malta is exempt from income tax. In addition, under this scheme, a 15% tax is levied on all income excluding the UN pension or widow’s/widower’s benefit arising outside of Malta in the year immediately preced ing the year of assessment in which it is received in Malta by the beneficiary and the beneficiary’s spouse and dependents, pro vided that the minimum amount of income subject to tax is EUR10,000 with respect to the beneficiary (this amount is increased by EUR5,000 if both spouses are in receipt of a UN pension). A 35% tax is imposed on all other income of the ben eficiary and the beneficiary’s spouse and dependents that is not chargeable in accordance with the preceding two rules. A benefi ciary is an individual who is not a permanent resident nor a
long-term resident of Malta and who proves to the satisfaction of the Commissioner for Revenue the following:
• The individual is in receipt of a UN pension or a widow’s/wid ower’s benefit, of which at least 40% is received in Malta.
• He or she is not a person who benefits under any other scheme.
• He or she is not a Maltese national.
• He or she holds a qualifying property holding.
• He or she is in receipt of stable and regular resources that are sufficient to maintain himself or herself and his or her dependents without recourse to the social assistance system in Malta.
• He or she is in possession of a valid travel document.
• He or she is in possession of sickness insurance with respect to all risks across the whole of the EU that are normally covered for Maltese nationals, and such insurance covers himself or herself and his or her dependents.
• He or she can adequately communicate in one of the official languages of Malta.
• He or she is a fit and proper person.
An individual ceases to possess special tax status under these rules after the appointed day for such status if any of the following circumstances arise:
• The individual becomes a permanent resident or a long-term resident of Malta.
• The individual becomes a Maltese national.
• The individual does not hold a qualifying property holding, including a case in which the individual lets or sublets the qualifying property holding.
• The individual fails to receive in Malta at least 40% of the UN pension or widow’s/widower’s benefit as indicated in documen tary evidence submitted to the Commissioner for Revenue.
• The individual is not in possession of the sickness insurance referred to above.
• The individual’s stay is not in the public interest.
• The individual stays in any other jurisdiction for more than 183 days in a calendar year.
Taxation of employer-provided stock options. The exercise by an employee of a share option is taxable as a fringe benefit. When an employee exercises the option to acquire shares in a company in which the employee is employed, the taxable value of the fringe benefit equals 15% of the excess, if any, of the market value of the shares on the date of the exercise of the option over the option price of such shares.
Capital gains. Capital gains derived from the transfer of the fol lowing capital assets are taxable:
• Immovable property
• Securities
• Business
• Goodwill
• Business permits
• Copyrights
• Patents
• Trademarks and trade names
• Beneficial interests in trusts
• A full or partial interest in a partnership
In certain cases, share dilutions and degroupings result in deemed transfers of securities in a company and are subject to tax.
In addition, if a person acquires or increases a partnership share, a transfer of an interest in the partnership to that partner from the other partners is deemed to occur and accordingly is subject to tax.
Taxable capital gains, other than on immovable property subject to property transfer tax (see Property transfer tax), are included with other income and taxed at the rates set forth in Rates.
Capital losses may not offset trading profits; however, capital losses may be carried forward for offset against future capital gains. Trading losses may offset capital gains.
Individuals who are not ordinarily resident in Malta are exempt from tax on gains derived from disposals of shares in Maltese companies and partnerships, other than Maltese property compa nies or property partnerships.
In the course of a winding up or distribution of assets of a com pany, the transfer of property by a company to a shareholder who owns 95% of the share capital of the company, or to an individu al related to the shareholder, is exempt from tax, provided certain conditions are satisfied.
Property transfer tax. In general, the transfer of immovable prop erty in Malta is taxed at a rate of 8% on the higher of the consid eration or market value of the immovable property at the date of the transfer. No deductions may reduce the tax base, except for agency fees subject to value-added tax (VAT). However, different tax rates apply in certain circumstances, which are described below.
If the property transferred was acquired before 1 January 2004 or if the property is a Grade 1 or Grade 2 scheduled property or property located in an urban conservation area, the seller is taxed at a rate of 10% of the transfer value.
A 5% tax rate applies in either of the following circumstances:
• The property does not form part of a project and is transferred before five years from the date of acquisition.
• The transferred property is a restored or rehabilitated property that is located in an urban conservation area or is scheduled by the Malta Environment and Planning Authority.
A 2% rate applies to a transfer of property owned by an individual (or co-owned by two individuals) that was deemed to be the transferor’s sole ordinary residence. The transfer must be made not later than three years after the date of acquisition of the property.
For a transfer of immovable property acquired through a donation made more than five years before the date of the transfer, a 12% rate applies on the difference between the relevant transfer value and the relevant acquisition value.
For a transfer of property that was acquired by the transferor by inheritance before 25 November 1992 or a transfer of property by inheritance after 25 November 1992 by means of a judicial sale
by auction, the tax equals 7% of the transfer value. If the prop erty was acquired by the transferor by inheritance after 25 November 1992, the tax equals 12% of the difference between the transfer value and the value declared when the property was inherited by the transferor.
For the transfer of property that is not part of a project, the tax rate is 5% of the transfer value if the transfer is made before five years after the acquisition date.
Nonresidents may opt out of the 8% final withholding tax regime if they produce a statement signed by the tax authorities of their country of residence confirming that they are resident in that country and that any gains or profits derived in Malta are being taxed in their country of residence. In such circumstances, the tax on the capital gain derived from the sale of immovable property in Malta is calculated by reference to the difference between the consideration and the cost of the property. Tax is calculated at the nonresident rates. However, these nonresidents must pay a 7% provisional tax payment on the transfer of property, which is not available for refund.
Deductions
Deductions from employment income. The following deductions from employment income are expressly allowed:
• Individuals may deduct certain alimony payments including alimony payments ordered by the courts of an EU or EEA member state or the courts of another jurisdiction as the Commissioner for Revenue may approve.
• School fees paid to schools specified by the Minister of Finance and fees with respect to a registered private kindergarten are deductible to persons paying such fees on behalf of their children. The maximum amounts deductible are EUR2,600 for each child attending secondary school and EUR1,900 for each child attending primary school plus EUR1,600 for kindergar ten. Fees paid to one of the specified schools for a facilitator with respect to a child with special needs may be deducted up to an amount of EUR9,320 if a board established by the Minister of Finance for this purpose determines that a facilitator is necessary.
• Individuals who prove to the satisfaction of the Commissioner for Revenue that they have paid fees for child care services for their children who were below the age of 12 to bona fide child care centers may claim a deduction for such payments con firmed by official receipts, up to a maximum deduction of EUR2,000.
• Fees paid for the use of school transport are deductible to per sons paying such fees on behalf of their children younger than 16. Up to a maximum of EUR150 for each child may be claimed as a deduction.
• Individuals who prove to the satisfaction of the Commissioner for Revenue that in the year preceding a year of assessment they have paid fees on their own behalf or on behalf of family mem bers with respect to a residence in a private home for the elderly and/or disabled may deduct such fees up to a maximum amount of EUR2,500. The proof must consist of information provided by the operator of the private home for the elderly.
• Individuals may claim a deduction for fees paid on behalf of their children younger than age 16 for attendance at sports activities organized either by a person registered under the Sport Persons (Registration) Regulations or approved by the Kunsill Malti ta’ l-Isport, up to a maximum deduction of EUR100 for each child. Individuals may also claim a deduction for fees paid on behalf of their children younger than 16 for cultural activities, also up to a maximum of EUR100 per child. • Individuals who prove to the satisfaction of the Commissioner for Revenue that they have paid fees with respect to their stud ies at recognized tertiary education institutions, located in Malta or abroad, may claim a deduction against their income with respect to such fees in such manner and subject to such conditions as may be prescribed. The deduction is capped at EUR10,000, but any amounts above that threshold may be car ried forward and set off against income for subsequent years.
Business deductions. Self-employed individuals may deduct all expenses incurred wholly and exclusively in the production of income, including capital allowances (tax depreciation) at speci fied rates. In addition, a deduction of up to EUR935 per child may be claimed for payments by an employer to a licensed or registered child care center with respect to child care services ren dered to children of employees.
Rates
Residents. The following tables present the progressive tax rates for the 2021 basis year for married persons filing jointly and single persons and married persons filing separately.
Married persons filing jointly
Taxable income Tax rate Tax due Cumulative tax due EUR % EUR EUR
First 12,700 0 0 0
Next 8,500 15 1,275 1,275
Next 7,500 25 1,875 3,150 Next 31,300 25 7,945 11,095 Above 60,000 35
Individuals who are EU/EEA nationals may also qualify for the above rates even if a spouse is not resident in Malta, provided that other specified conditions are satisfied and that the Commissioner for Revenue is satisfied that at least 90% of the couple’s world wide income is derived from Malta.
Single persons and married persons filing separately
Taxable income Tax rate Tax due Cumulative tax due EUR % EUR EUR
First 9,100 0 0 0
Next 5,400 15 810 810 Next 5,000 25 1,250 2,060 Next 40,500 25 10,215 12,275
Above 60,000 35
Persons applying either the single tax rates or the married tax rates who receive pensions exceeding EUR9,100 or EUR12,700, respectively, are allowed a pension tax rebate.
For persons applying the single tax rates with pension income exceeding EUR9,100, the pension tax rebate is calculated as follows:
Pension tax rebate = (Pension income – EUR9,100) × 0.15
However, the maximum tax rebate cannot exceed EUR705.
For persons applying the married tax rates with pensions exceed ing EUR12,700, the pension tax rebate is calculated as follows:
Pension tax rebate = (Pension income – EUR12,700) × 0.15
However, the maximum tax rebate cannot exceed EUR165.
In addition, a further pension tax rebate is granted to persons applying the married tax rates. The further pension tax rebate is calculated as follows:
Further pension tax rebate = [(Taxable income – EUR12,700) × 0.15] –Original rebate (maximum of EUR165)
However, the maximum rebate cannot exceed EUR300.
Individuals who have not yet reached the statutory retirement age and who return to employment after having been absent from any gainful occupation for at least five years immediately preceding the date of the income tax return (30 June) benefit from a tax credit of EUR2,000. This tax credit is set off against the tax on income from the employment and may be claimed for two con secutive years beginning in the year of assessment in which the employment begins.
Women who have a child and continue in employment, including women who have a child or children who are under 16 years of age and return to employment after having been absent from any gainful occupation for at least five years immediately preceding the date of the income tax return (30 June), also benefit from the tax credit of EUR2,000 referred to in the preceding paragraph. At their option, these women are able to claim (as an alternative to the tax credit of EUR2,000) a tax credit of EUR5,000, which may be claimed against the tax on income from employment derived in the year in which the employment resumes.
In certain cases, a tax exemption for employment income in the year of the beginning of employment may be claimed.
Individuals must be subject to a tax liability amounting to not less than EUR5,000 in Malta on their income if, during any year preceding the year of assessment, they meet all of the following conditions:
• They are ordinarily resident in Malta but not domiciled in Malta.
• They are not taxed in accordance with any structured scheme that provides for a minimum annual tax payment.
• They derive income arising outside of Malta amounting to not less than EUR35,000, and the income is not received or fully received.
In certain cases, the remittance base charge may be capped to an amount lower than EUR5,000. Relief for double taxation is allowed in certain cases.
Individuals who qualify as full-time employees for the purposes of the law or are married to full-time employees may elect to have their part-time income taxed at a flat rate of 15% instead of at the progressive rates listed above. The maximum income to which this special rate may be applied is EUR10,000 (EUR12,000 for income derived from a self-employment activity).
Individuals who are employed on a full-time basis in a post that is not a managerial post and who carry out qualifying overtime may be taxed on their qualifying overtime income at a flat rate of 15%. The applicability of this flat rate is subject to a cap.
Nonresidents. Nonresidents, regardless of whether they are mar ried or single, are subject to tax at the following rates on income arising or received in Malta.
Taxable income Tax rate Tax due Cumulative tax due EUR % EUR EUR
First 700 0 0 0
Next 2,400 20 480 480
Next 4,700 30 1,410 1,890
Above 7,800 35 —
However, for individuals who are EU/EEA nationals, if the Commissioner for Revenue is satisfied that at least 90% of the individual’s worldwide income is derived from Malta, the income tax rates applicable to residents, which are specified above, apply.
In general, if taxable income is paid to a nonresident (other than a company), a 25% withholding tax must be deducted at source and remitted to the Commissioner for Revenue within 30 days. Any tax withheld is credited to nonresident taxpayers in full against their final tax liability for the year. This withholding tax does not apply to dividends paid out of previously taxed profits (see Investment income), to income previously subject to with holding under the FSS (see Section D), or to interest and royalties.
Parental rates. Parental computation applies to a parent who maintains under his or her custody a child, or pays maintenance in respect of his or her child, and such child is not over 18 years of age (or not over 23 years if receiving full-time instruction at a tertiary education establishment) and not gainfully occupied, or if gainfully occupied did not earn income in excess of EUR3,400.
Under parental computation, parents are entitled to be taxed at the following rates:
Taxable income Tax rate Tax due Cumulative tax due EUR % EUR EUR
First 10,500 0 0 0
Next 5,300 15 795 795
Next 5,400 25 1,350 2,145
Next 38,800 25 9,805 11,950
Above 60,000 35 —
Persons qualifying for parental tax rates who are over 61 years of age and are entitled to a pension of more than EUR10,500, are allowed a pension tax rebate, which is calculated as follows: Pension tax rebate = (Pension income – EUR10,500) × 0.15
However, the maximum rebate cannot not exceed EUR495.
Tax credits with respect to personal retirement schemes. Maltese residents who save for their pensions by investing in personal retirement schemes may benefit from a tax credit that is set off against the individuals’ income tax chargeable in Malta for the year. Such credit applies to persons who make contributions to qualifying personal retirement schemes or pay premiums on pri vate long-term insurance policies.
Qualifying Maltese resident persons over 18 years of age may claim a tax credit of 25% of the total contributions paid during the year to personal retirement schemes. The maximum amount that can be claimed as a tax credit is EUR500.
The Voluntary Occupational Pension Scheme Rules. The Voluntary Occupational Pension Scheme (VOPS) Rules provide for a spe cial tax credit applicable to qualifying employees making quali fying contributions to qualifying schemes, subject to several conditions. This tax credit amounts to the lower of 25% of the amount of qualifying contributions paid during a year and EUR500 or any other amount prescribed by the Minister of Finance from time to time.
Any payments made by a qualifying employer for the benefit of a qualifying employee are not deemed to be a benefit provided by the qualifying employer to the qualifying employee by reason of employment or office for the purposes of the Fringe Benefit Rules.
For purposes of the VOPS Rules, a qualifying scheme is a retire ment scheme or a long-term contract of insurance that fulfills certain requirements and that is approved by the Commissioner for Revenue, and a qualifying contribution is a contribution or payment made to a qualifying scheme with respect to which the provisions of the VOPS Rules apply.
Tax Credit (Educational Qualifications) Rules. The Tax Credit (Educational Qualifications) Rules grant an individual who has obtained a relevant qualification on the completion of a course or program of studies on a full-time basis that commenced in 2017 or later a tax credit equal to the tax chargeable for the relevant year of assessment on the income from the individual’s full-time employment. The maximum amount of the income that can be relieved by such credit is EUR60,000. The tax credit is also avail able to courses commenced before 2017, with the tax credit being calculated using a formula prescribed by the Tax Credit (Higher Educational Qualifications) Rules.
Commutation of pensions. An exemption from Malta tax applies to a capital sum received by way of commutation of pension amounting to up to 30% of the total pension, retirement or death gratuity or consolidated compensation for death or injuries. In the case of recognized retirement schemes, this exemption applies regardless of whether the capital sum is paid in one lump sum or in a series of payments within one year from an individu al’s retirement day as prescribed by issued regulations.
Relief for losses. Individuals may offset any losses incurred in a trade, business, profession or vocation against other income. These losses may be carried forward for offset against future years’ income. Losses may not be carried back. Unabsorbed capital
allowances may be carried forward indefinitely to offset income from the same source.
B. Estate and gift taxes
Malta does not impose estate or gift taxes. However, duty on documents is imposed on heirs upon inheritance of immovable property at a rate of 5% and on shares at a rate of 2%. The same rates of duty apply to transfers of real immovable property and shares, including transfers through gifts. Duty on documents at a special rate of 5% is imposed on the transfer of shares of a company if 75% or more of the company’s assets consist of immov able property or rights over immovable property.
C. Social security
Social security is provided by a system of social insurance and a system of social assistance regulated by the Social Security Act.
Contributions. All employed and self-employed persons must pay social security contributions.
Employed persons. Employers make social security contributions at a rate of 10% of the basic wage paid to their employees, subject to a minimum amount of EUR18.11 and a maximum amount of EUR37.24 for persons born up to 31 December 1961 or EUR48.57 for persons born from 1 January 1962 onward, per week per employee. Employees are also required to make a 10% contribution, subject to the same minimum and maximum amounts.
Employees aged 18 years and older earning less than EUR181.08 per week should pay EUR18.11 per week. However, employees may elect to pay 10% of their weekly gross wage. If the em ployee makes such an election, he or she is entitled to pro rata contributory benefits.
The minimum amount for social security contributions to be paid by persons under 18 years old is EUR6.62 per week.
Employers deduct the social security contributions before paying the net salary to the employee. The employer must remit the amount due to the Commissioner for Revenue by the end of the following month in which the wages or salaries are paid.
Self-occupied and self-employed persons. The Social Security Act defines the following two categories of persons that are required to pay Class Two contributions:
• Self-occupied persons are those who earn income in excess of EUR910 per year from a trade, business, profession, vocation or any other economic activity.
• Self-employed persons are those who receive income from rents, investments, capital gains or any other income.
Rates for Class Two social security contributions are based on the annual net profit or income for the year preceding the contribu tion payment year.
For self-employed persons whose income during the calendar year immediately preceding the contribution year was less than EUR10,757, a weekly contribution of EUR31.03 applies.
For persons born on 31 December 1961 or earlier, and whose income in the preceding year was at least EUR10,758 but did not exceed EUR19,362, the weekly contribution is 15% of annual net earnings. If income in the preceding year exceeded EUR19,362, the weekly contribution is EUR55.85.
For persons born 1 January 1962 or later, and whose income in the preceding year ranged from EUR10,758 to EUR25,258, the weekly contribution is 15% of annual net earnings. If income in the preceding year exceeded EUR24,258, the weekly contribu tion is EUR72.86.
A separate rate applies to single persons who are self-employed but not self-occupied (self-occupied individuals are individuals rendering independent personal services). For these persons, if income in the preceding year ranged from EUR1,006 to EUR9,296, the weekly contribution is EUR26.82.
Coverage. Maltese citizens receive free services and financial aid benefits for unemployment, illness, work injury, disability, old age, early retirement (at 61 years of age), marriage, maternity, children, widowhood and medical care. All employees who pay a mini mum amount of social security contributions are entitled to a basic pension on retirement.
Totalization agreements. To prevent double taxation and assure benefit coverage, Malta has entered into social security totalization agreements with Australia, Canada, Libya, New Zealand and the United Kingdom.
As a member of the EU, Malta is governed by EU Regulations 883/04 and 987/09 regarding the social security exemption system.
Social security matters with the United Kingdom are now dealt with under the trade agreement between the EU and the United Kingdom, which came into force on 1 January 2021. It specifi cally includes a protocol on social security coordination and is transposed for UK and EU nationals resident in the United Kingdom.
D. Tax filing and payment procedures
The year of assessment (tax year) is the calendar year. In the year of assessment, income tax is charged on income earned in the preceding calendar year (the basis year). Recipients of specified types of income are not required to file regular tax returns, but they receive a tax statement with respect to the basis year in ques tion. The taxpayer needs to review the tax statement. If the taxpayer does not agree with the amount, a form attached to the tax statement must be completed and sent to the Commissioner for Revenue. Subsequently, the taxpayer may be asked to file a spe cial tax return by 30 June of the year following the basis year. The following are the specified types of income subject to the above rule:
• Employment income subject to withholding under the final settlement system
• Pensions and other social benefits
• Dividends from resident companies
• Investment income on which final tax is withheld at a rate of 15%
• Income of up to EUR10,000 per year from part-time employ ment activities on which tax is withheld at a rate of 15%
All other individuals must file a self-assessment tax return and pay all tax due by 30 June of the year following the basis year.
In addition, if a person has received a tax refund that is not wholly or partly due to him or her, repayment must be made to the Commissioner for Revenue within 30 days from the date of the receipt of the refund. Interest is charged if such payment is not made within the stipulated time.
Tax liability for employees is paid through the Final Settlement System (FSS) of withholding on salaries and wages.
Self-employed individuals make advance payments of tax, known as provisional tax, in three installments on 30 April, 31 August and 21 December. The three installments must equal specified percentages of the total tax liability shown on the last return submitted to the Commissioner for Revenue. The following are the percentages:
• First installment, 20%
• Second installment, 30%
• Third installment, 50%
The provisional tax payments are credited against the total tax liability for the year in which they are paid.
Married persons may elect separate taxation, but must nonethe less appoint one spouse to be the responsible spouse for income tax purposes. Any investment or other passive income is included in the taxable income of the spouse with the higher earned income, regardless of which spouse is designated as the respon sible spouse.
Effective from the 2021 year of assessment, certain married couples are able to make a separate return election. Once the separate return election is made, the income of each spouse is charged to tax in the name of the respective spouse separately from the income of the other spouse, and each spouse is respon sible for complying with the provisions of the ITA relating to the submission of returns of his or her income and the ascertainment of that income. Certain computational rules apply, and the spouses are required to tax rental income and investment income at the final tax rates, when applicable.
E. Double tax relief and tax treaties
Most of Malta’s treaties are based on the Organisation for Economic Co-operation and Development (OECD) model con vention. The treaties with Qatar and the United Arab Emirates (UAE) incorporate elements of the UN’s model. Malta’s double tax treaties eliminate double taxation through the credit method. Malta has entered into double tax treaties with the following jurisdictions.
Albania Hong Kong Pakistan
Andorra
Armenia*
Australia India Qatar
Austria Ireland Romania
Azerbaijan Isle of Man Russian
Bahrain Israel Federation
Barbados Italy San Marino
Belgium Jersey Saudi Arabia
Botswana
Jordan Serbia
Bulgaria Korea (South) Singapore
Canada Kosovo Slovak Republic
China Mainland Kuwait Slovenia
Croatia Latvia South Africa
Curaçao* Lebanon Spain
Cyprus Libya Sweden
Czech Republic
Liechtenstein Switzerland
Denmark Lithuania Syria
Egypt Luxembourg Tunisia Estonia Malaysia Turkey
Ethiopia* Mauritius Ukraine
Finland Mexico United Arab
France Moldova Emirates
Georgia Monaco United Kingdom
Germany Montenegro United States
Ghana* Morocco Uruguay Greece Netherlands Vietnam Guernsey Norway
* This treaty is not yet in force.
Malta has also ratified the OECD’s Multilateral Instrument, which applies to tax periods starting on or after 1 January 2020.
Other available relief includes commonwealth income tax relief, unilateral relief and a flat-rate foreign tax credit.
F. Temporary visas
Citizens of the member countries of the Schengen area do not require visas to enter Malta.
Citizens of the following jurisdictions require visas to enter Malta.
Afghanistan (a) Eswatini Nepal Algeria Ethiopia (a) Niger
Angola Fiji Nigeria (a)
Armenia Gabon Oman
Azerbaijan Gambia Pakistan (a)
Bahrain Ghana (a) Palestinian Authority
Bangladesh (a) Guinea Papua New Belarus Guinea-Bissau Guinea
Belize Guyana Philippines
Benin Haiti Qatar
Bhutan India Russian
Bolivia Indonesia Federation Botswana Iran (a) Rwanda
Burkina Faso Iraq
São Tome
Burundi Jamaica and Príncipe
Cambodia Jordan Saudi Arabia
Cameroon Kazakhstan Senegal
Cape Verde Kenya Sierra Leone
Central African Korea (North) Somalia (a)
Republic Kosovo South Africa
Chad Kuwait South Sudan
China Mainland Kyrgyzstan
Sri Lanka (a) Comoros Laos Sudan Congo Lebanon Suriname (Democratic Lesotho Syria Republic of) (a) Liberia
Tajikistan Congo Libya (b) Tanzania (Republic of) Madagascar Thailand
Côte d’Ivoire Malawi
Togo Cuba Maldives Tunisia
Djibouti Mali Turkey Dominican Mauritania Turkmenistan Republic Mongolia Uganda Ecuador Morocco Uzbekistan Egypt Mozambique Vietnam Equatorial Myanmar Yemen Guinea Namibia Zambia Eritrea (a) Nauru Zimbabwe
(a) Nationals from these jurisdictions must be in possession of an airport transit visa when passing through an EU airport international transit area.
(b) The Ministry for Foreign Affairs has decided to temporarily suspend the agreement on the exemption of the visa requirement for Libyan diplomatic and special passport holders, and with immediate effect, introduced an entry visa requirement for these passport holders. Holders of Service/Official passports also require a visa.
Nationals of the following jurisdictions are exempt from the requirement to hold a visa to enter Malta for a maximum of 90 days in a 180-day period (also, see the next paragraph).
Albania Hong Kong (a) St. Lucia Andorra Israel St. Vincent and Antigua and Japan the Grenadines Barbuda Kiribati Samoa Argentina Korea (South) San Marino Australia Macau (b) Serbia (c) Bahamas Malaysia Seychelles Barbados Marshall Singapore Bosnia Islands Solomon Islands and Mauritius Taiwan (d) Herzegovina Mexico Timor-Leste Brazil Micronesia Tonga Brunei Moldova Trinidad and Darussalam Monaco Tobago Canada Montenegro Tuvalu Chile New Zealand Ukraine Colombia Nicaragua United Arab Costa Rica North Macedonia Emirates Dominica Palau United States El Salvador Panama Uruguay Georgia Paraguay Vanuatu Grenada Peru Vatican City Guatemala St. Kitts Venezuela Honduras and Nevis
(a) The visa exemption applies only to holders of a Hong Kong passport. (b) The visa exemption applies only to holders of a Macau passport. (c) Nationals of Serbia holding a biometric passport are exempt from the visa obligation. Holders of Serbian passports issued by the Serbian Coordination Directorate are excluded.
(d) The exemption from the visa requirement applies only to holders of passports issued by Taiwan that include an identity card number.
The exemption mentioned in the preceding paragraph also applies to British citizens who are not nationals of the United Kingdom for the purposes of EU law, which are British nationals (overseas), British overseas territories’ citizens, British overseas citizens, British protected persons and British subjects.
Types of visas. Single-entry visas are normally granted for one month to those who require visas either for tourist purposes or to attend specific events. They entitle a single uninterrupted stay during the period stipulated in the visa, which may not exceed three months.
Double-entry visas entitle two stays during the period stipulated in the visa, but the sum of the lengths of stay may not exceed three months within half of a year.
Multiple-entry visas are issued for periods of 3, 6 or 12 months. Similar permits are normally granted by the Commissioner of Police to individuals who come to Malta frequently, including individuals trying to establish businesses in Malta. They entitle multiple stays during the period stipulated in the visa. The sum of the periods of stay may not exceed three months within a halfyear.
Students are issued visas if the Commissioner of Police is confi dent that they are attending school full-time in Malta. The visa is issued for the length of the academic year.
A short-stay “C” visa (Schengen) allows the holder to transit through or remain in the territory of Malta and all other Schengen member states for a maximum of 90 days within a period of 183 days from the entry into the Schengen zone.
The National Visa (long stay/D-visa) allows the holder to transit through or remain in the territory of Malta for a period exceeding 90 days but no longer than 365 days.
Transit visas are issued to nationals of states that require visas if the nationals have confirmed tickets to another destination and if they remain in Malta no longer than 24 hours. Such visa allows the holder to cross the international transit zone of Malta’s International Airport.
Application procedure. A visa application form may be obtained from Malta’s diplomatic missions and consular posts or down loaded online, and must be completed and submitted to the Principal Immigration Officer of the home country at the earliest six months before the planned trip. When lodging an application, the applicant must appear in person, unless this requirement has been waived. Applications are in most cases reviewed within 7 to 15 days (period may vary depending on the jurisdiction in which the visa application is submitted). In individual cases, the review period can be extended up to 30 days and in exceptional cases up to 60 days. It is advisable that a visa application not be filed later than 15 days before the planned trip. The following items are required with the submission of an application:
• A valid passport
• Two passport-size photographs that are in color and taken against a white background, with the face clearly visible
• The visa fee
Type of visit
The above list provides a general guideline, but it is not conclu sive.
Visas are granted at the discretion of the consulate or the Principal Immigration Officer in the jurisdiction where the appli cant resides, who evaluates any special circumstances at the time of application. Ownership of assets in Malta is not a determining factor when a foreign national applies for a visa but, at the discre tion of the Principal Immigration Officer, may be considered an advantage.
Visas are issued on the condition that applicants do not engage in any professional activity in Malta.
G. Work permits
To take up employment in Malta, a third-country national must obtain either a work permit (which would cover a residence permit, to be applied for separately) or employment license (a residence permit would need to be applied for if employment exceeds three months). Identity Malta Agency issues combined work and residence permits in Malta for non-EU and EU/EEA/ Swiss nationals. From 2019, employment license applications for “service providers” are handled directly by Jobsplus (one of the stakeholders of Identity Malta) while employment license appli cations for intra-corporate transferees (ICTs) are handled directly by Identity Malta.
EEA and Swiss nationals and their third-country family members or dependents are required to apply for a work permit or an em ployment license to work in Malta. The individuals need to have their employment registered with Jobsplus on the first day of employment by the local employer. If the stay of these individuals in Malta will exceed a minimum period of three months, a resi dence permit application must be filed with Identity Malta Agency. For non-EU citizens, work permits are normally granted only to individuals who are able to provide skills or expertise not available in the local market.
Identity Malta Agency launched its online portal in 2020, where by it started accepting single permit applications (applications for a combined permit) and applications for ICTs submitted electronically. Once the applications are submitted, vetted and consequently approved, applicants will be called to visit Identity Malta Agency offices so that their biometrics and photograph are taken. On the day of this appointment, an interim permit will be issued that will allow the individual to reside legally (and in some cases, work legally for the local employer) until the official work or residence document is issued. With respect to employment li censes, those third-country nationals who are not eligible for a single-permit would need to apply for an employment license. Those third-country nationals who fall under this category and whose stay in Malta will exceed a minimum period of three months need to apply for a residence permit with Identity Malta Agency. The residence permit will be issued on presentation of the residence application following the approval of the employ ment license (as indicated above, if the duration of the stay in Malta is longer than three months).
Applications for work permits are considered on a case-by-case basis. Work permits are generally valid for one year and are renewable thereafter. It takes approximately two to six months for a work permit to be issued and four to six weeks for an employ ment license to be issued.
In 2017, the Maltese government introduced a new scheme, known as the Key Employee Initiative (KEI) scheme, which processes work permit applications for non-EU nationals within five working days. The application can be submitted while the applicant is still abroad. The KEI scheme applies to employees who satisfy the following conditions:
• They earn an annual gross salary of at least EUR30,000 per year.
• They provide certified copies of their relevant qualifications, warrants (certificates provided to accountants in Malta) or documents showing the necessary work experience.
• They provide a declaration by the employer stating that the applicant has the necessary credentials to perform the assigned duties.
Other documentation is required to complete the application.
H. Residence permits
An EU citizen may enter, remain and reside in Malta and seek and take up employment or self-employment in Malta.
Subject to limitations based on the grounds of public policy, public security or public health, an EU citizen may enter and exit Malta on the production of a valid identification document and move freely within Malta for a period of three months (or such other period, as may be prescribed), beginning on the date of entry.
If the period of residence of an EU citizen exceeds three months, or if during such period, he or she takes up employment in Malta, he or she must apply for a residence document. Subject to certain exceptions, the Principal Immigration Officer must issue to the citizen and his or her dependents a residence document.
A national of a state that is not a member of the EU or the EEA may not enter Malta for a visit with a duration exceeding one month unless he or she satisfies all of the following conditions:
• He or she holds a valid passport.
• He or she holds a valid visa, as required by the Common Con sular Instructions.
• Before entry into Malta, he or she submits documents substan tiating the purpose and the conditions of the planned visit.
• He or she has sufficient means, both for the period of the planned visit and the return to his or her country of origin, or for traveling to a third state into which his or her admission is guaranteed, or is in a position to acquire such means legally.
• He or she has not been reported as a person to be refused entry.
• He or she is not considered to be a threat to public policy or national security.
Exceptions to the above rules apply if any of the following cir cumstances exist:
• The Principal Immigration Officer considers it necessary to admit the individual on humanitarian grounds, in the national
interest or in honor of international obligations of the govern ment of Malta.
• A third-party national holds a uniform residence permit or a re-entry visa, or both as may be required, issued by an EU mem ber state. In such case, he or she is permitted to enter Malta for the sole purpose of transit.
• An individual holding a Schengen visa when entering Malta from a Schengen state is returning to a Schengen state, and the validity of the visa covers the period to be spent in Malta and the period for his or her return to the Schengen state from which he or she arrived.
• An individual not returning to a Schengen state has sufficient means and documents to cover his or her stay in Malta and his or her onward journey.
A residence document is valid for a period ranging from one to five years from the date of issuance. Residence documents are renewable on submission of an application.
A residence document must specify whether the individual is taking up residence in Malta for a long-term or permanent stay in Malta, work, study or another purpose.
The provisions of the Immigration Regulations do not override the provisions of any law regulating the acquisition of property in Malta by non-Maltese nationals, and a residence document does not, by itself, grant rights to the holder to acquire or own property in Malta over and above the rights granted by the Immovable Property (Acquisition by Non-Residents) Act.
I. Family and personal considerations
Family members. The spouse and dependents of a working expatriate must obtain separate work permits to be employed legally in Malta if they are third-country nationals and are not depen dents of EU/EEA or Swiss nationals.
Family members of a working expatriate do not need work permits to reside in Malta, unless they want to take up employment in Malta if they are third-country nationals and are not depen dents of EU/EEA or Swiss nationals.
Family members of an expatriate residing in Malta need to apply for a residence permit in Malta as dependents.
Marital property regime. Couples married in Malta are subject to Malta’s community property regime, unless they elect otherwise in an agreement by public deed. Couples who marry outside Malta and subsequently establish a marital domicile in Malta are sub ject to the community property regime with respect to property acquired after their arrival in Malta.
Under the regime, property acquired before marriage remains separate property, although proceeds from the sale of property acquired before marriage are community property.
Forced heirship. Under Malta’s succession law, a testator who has no ascendants, descendants or spouse may freely dispose of his or her estate. Other testators are required to leave a specified portion (one-fourth, one-third or one-half, depending on the relationship between the deceased and beneficiary and on the number of the heirs) to the abovementioned heirs.
Driver’s permits. Expatriates may drive legally in Malta with their home country driver’s licenses for 12 months since their last entry into Malta.
Malta has driver’s license reciprocity with all countries signatory to the Geneva Convention on Road Traffic, 1949.
Licenses issued in the EU/EEA, Australia, Switzerland or the United Arab Emirates (only in the case of Maltese or UAE nation als) can be exchanged for a Maltese driver’s license after the applicant has been a resident of Malta for 185 days. Holders of valid driving licenses issued in EU member states can drive in Malta without the need to obtain additional permits.
Holders of valid driving licenses issued in non-EU countries (excluding the countries specified above) can drive up to one year in Malta, after which they need to obtain a Maltese driving license.
All other foreigners must have work permits, residence permits and freedom of movement to obtain driver’s licenses. A license is granted after the applicant passes a physical driving test and a verbal test.