Property Malta

Conditions for Property Purchase

The conditions that should be satisfied once in possession of a certificate are:

• The holder will be required to take up residence by not later than one year from the issue date of the certificate. The holder has to complete a prescribed document which has to be presented together with identification documents to the Department of Inland Revenue, Expatriates Division, within 15 days of arriving in Malta.
• The holder must either purchase immovable property valued at not less than €169,205 (€101,551 in the case of an apartment), or lease/rent immovable property for not less than €4,150 per annum within twelve months of taking up residence in Malta.

Residents Scheme Regulations

The Scheme is regulated by the Residents Scheme Regulations, 2004. An individual who satisfies the conditions stipulated under the scheme will be provided with a certificate issued by the Commissioner of Inland Revenue that entitles him/her for the benefits of the scheme.

Such certificate shall also be deemed to constitute a permit issued in terms of article 7 of the Immigration Act and the holder thereof shall be entitled to reside in Malta subject to such conditions as specified in the regulations. Any foreigner, of whatever nationality, may submit an application under the scheme provided the specific conditions are satisfied. 

An individual will be eligible if:

• He/she has an annual income equivalent to €23,000 arising outside Malta or capital equivalent to €349,000.
• If he/she remits annually to Malta an income equivalent to €13,950 in his/her respect and €2,300 in respect of each dependant.

For the purposes of this scheme, "dependant" means:

• The spouse;
• Sons and / or daughters under 21 years of age;
• Parent or grandparent who is financially dependent on the applicant.

Applications for a certificate must be made on the appropriate prescribed form which is available from the Inland Revenue Department website http://www.ird.gov.mt or from the Malta Diplomatic Mission in the country of nationality. The application must also be accompanied by:

1. A certificate from the applicant’s bankers (or as applicable) showing either (i) that he/she has an annual income equivalent to €23,000 arising outside Malta; or (ii) capital equivalent to €349,000. It must also certify that the applicant will be able to import into Malta a minimum annual income of €13,950 plus €2,300 for each dependant.
2. A Conduct certificate in respect of each adult (18 years or over) whose name appears on the said application, from the Police authorities of the country where the applicant and his/her dependants have resided.
   • Such certificate/s should indicate whether the applicant/dependants ever had any criminal convictions or whether the applicant/dependants have any ongoing criminal proceedings.
   • If the certificate issued by the Police authorities does not contain such information, the applicant/dependants should make a declaration on oath before a Commissioner for Oaths attesting whether the applicant and his dependants, if any, ever had any criminal convictions or have any ongoing criminal proceedings.
   • If the Police authorities in any of the countries where the applicant/dependant have resided do not issue conduct certificates, character references would be required from any three of the following:
     • Banker;
     • Solicitor;
     • Medical practitioner;
     • Employer (or previous employer);
     • Accountant; or
     • Any person of a similar standing,

Together with the declaration as already specified above.

3. A copy of the marriage certificate is required in the case of a married couple, a married woman who is applying on her own behalf, a divorced woman, or a widow. Otherwise full birth certificates should be submitted.
4. A written declaration by the applicant stating that parents and/or grandparents are financially dependent on him (where applicable).
5. Three passport-sized photographs and photocopies of the relevant pages of passport/identification card of each person whose name appears on the application form.
6. A copy of either the deed of purchase or the lease/rent agreement if the applicant already owns or has leased/rented immovable property in Malta.
7. The supporting documents, indicated under notes 1 to 5 above, attached to this application MUST be certified original documents attested for correctness by a warranted notary public of the country of nationality. Furthermore, all supporting documents must be legalized by the Ministry of Foreign Affairs of the country of nationality and counter-legalized by an official of the Malta Diplomatic Mission in the country of nationality.

An administrative fee of €115, or equivalent in foreign currency, is charged by the Malta Diplomatic Mission against an official receipt, for the processing of the application and its transmission to Malta. This fee is not refundable even in those instances where the Commissioner refuses the application.

The application process generally takes about 3 months and at the end of the first year of residence and subsequently at the end of every calendar year, a permanent resident will be required to complete the annual tax return and specific attachments to confirm that he/she has fulfilled the conditions attaching to the permit.

Income Tax Benefits

An individual qualifying for the scheme will benefit from the flat of 15% on all income received in, or remitted to Malta from either local or foreign sources as regulated by Article 56(10) of the Income Tax Act. This is subject to a minimum tax payment of €4,192 per annum.

Residence Certificate

Once an application is approved, the applicant is obliged to pay four thousand one hundred and ninety two euro (€4,192) - 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 two thousand nine hundred and eighty five euro (€2,985) 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 of Four thousand one hundred and fifty euro (€4,192) 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.

Importation of Personal Effects

There are no restrictions or formalities with customs when bringing your personal effects from any EU country into Malta.  However, personal effects coming from outside any EU country must adhere to the rules & regulations listed in the Council Regulation 918/83.

If you’d like to receive more information, or have any questions, please contact Malta Controller of Customs at +356 25685121

COUNCIL REGULATION NO. 918/83

1. This Regulation sets out those cases in which, owing to special Circumstances, relief from import or export duties shall be granted respectively when goods are put into free circulation or are exported from the customs territory of the Community.

2. For the purposes of this Regulation:

(a) ‘Import duties’ means customs duties and charges having equivalent effect and also agricultural levies and other import charges provided for under the common agricultural policy or under specific arrangements applicable to certain goods resulting from the processing of agricultural products;

(b) ‘Export duties’ means agricultural levies and other export charges provided for under the common agricultural policy or under specific arrangements applicable to certain goods resulting from the processing of agricultural products;

(c) ‘Personal property’ means any property intended for the personal use of the persons concerned or for meeting their household needs.

The following, in particular, shall constitute ‘personal property’:

• Household effects,
• Cycles and motor cycles, private motor vehicles and their trailers, camping caravans, pleasure craft and private aero planes.

Household provisions appropriate to normal family requirements, household pets and saddle animals, as well as the portable instruments of the applied or liberal arts, required by the person concerned for the pursuit of his trade or profession, shall also constitute ‘personal property’. Personal property must not be such as might indicate, by its nature or quantity, that it is being imported for commercial reasons;

(d) ‘Household effects’ means personal effects, household linen, furnishings and equipment intended for the personal use of the persons concerned or for meeting their household needs;

(e) ‘Alcoholic products’ means products (beer, wine, aperitifs with a wine en alcohol base, brandies, liquers or spirituous beverages, etc.) falling within heading Nos 2203 to 2208 of the Combined Nomenclature.

3. Save as otherwise provided in this Regulation for the purpose of applying Chapter I, the concept of third countries also includes those parts of Member States' territories excluded from the customs territory of the Community by virtue of Regulation (EEC) No 2151/84 (1).

RELIEF FROM IMPORT DUTY

PERSONAL PROPERTY BELONGING TO NATURAL PERSONS TRANSFERRING THEIR NORMAL PLACE OF RESIDENCE FROM A THIRD COUNTRY TO THE COMMUNITY

Article 2

Subject to Articles 3 to 10, personal property imported by natural persons transferring their normal place of residence from a third country to the customs territory of the Community shall be admitted free of import duties. 

Article 3

The relief shall be limited to personal property which:

(a) Except in special cases justified by the circumstances, has been in the possession of and, in the case of non-consumable goods, used by the person concerned at his former normal place of residence for a minimum of six months before the date on which he ceases to have his normal place of residence in the third country of departure;

(b) Is intended to be used for the same purpose at his new normal place of residence.

In addition, Member States may make relief conditional upon such property having borne, either in the country of origin or in the country of departure, the customs and/or fiscal charges to which it is normally liable.

Article 4

Relief may be granted only to persons whose normal place of residence has been outside the  customs territory of the Community for a continuous period of at least 12 months (proof has to be presented to Customs when processing documentation, i.e. certificate from the Embassy, proof of employment, letter from an authorized person…attorney, notary etc.).

 Article 5

No relief shall be granted for:

(a) Alcoholic products;

(b) Tobacco or tobacco products;

(c) Commercial means of transport

(d) Articles for use in the exercise of a trade or profession, other than portable instruments of the applied or liberal arts.

Article 6

Except in special cases, relief shall be granted only in respect of personal property entered for free circulation within 12 months from the date of establishment, by the person concerned, of his normal place of residence in the customs territory of the Community.

The personal property may be released for free circulation in several separate consignments within the period referred to in the preceding paragraph.

Article 7

1. Until 12 months have elapsed from the date on which its entry for free circulation was accepted, personal property which has been admitted duty-free may not be lent, given as security, hired out or transferred, whether for a consideration or free of charge, without prior notification to the competent authorities.

2. Any loan, giving as security, hiring out or transfer before the expiry of the period referred to in paragraph 1 shall entail payment of the relevant import duties on the property concerned, at the rate applying on the date of such loan, giving as security, hiring out or transfer, on the basis of the type of property and the customs value ascertained or accepted on that date by the competent authorities.

Article 8

1. By way of derogation from the first paragraph of Article 6, relief may be granted in respect of personal property entered for free circulation before the person concerned establishes his normal place of residence in the customs territory of the Community, provided that he undertakes actually to establish his normal place of residence there within a period of six months. Such undertaking shall be accompanied by a security, the form and amount of which shall be determined by the competent authorities.

2. Where use is made of the provisions of paragraph 1, the period laid down in Article 3 (a) shall be calculated from the date on which the personal property is brought into the customs territory of the Community.

Article 9

1. Where, owing to occupational commitments, the person concerned leaves the third country where he had his normal place of residence without simultaneously establishing his normal place of residence in the customs territory of the Community, although having the intention of ultimately doing so, the competent authorities may authorize duty-free admission of the personal property which he transfers into the said territory for this purpose.

2. Duty-free admission of the personal property referred to in paragraph 1 shall be granted in accordance with the conditions laid down in Articles 2 to 7, on the understanding that:

(a) The periods laid down in Article 3 (a) and the first paragraph of Article 6 shall be calculated from the date on which the personal property is brought into the customs territory of the Community;

(b) The period referred to in Article 7 (1) shall be calculated from the date when the person concerned actually establishes his normal place of residence in the customs territory of the Community.

3. Duty-free admission shall also be subject to an undertaking from the person concerned that he will actually establish his normal place of residence in the customs territory of the Community within a period laid down by the competent authorities in keeping with the circumstances.

The latter may require this undertaking to be accompanied by a security, the form and amount of which they shall determine.

Article 10