Malta Permanent Residence Benefits

Malta Tax Domicile

The Malta Tax Domicile of an individual is the most persistent tax connection recognised in Maltese tax law and is acquired from one’s father at birth or after reaching the age of 18 by choice. Losing one’s Malta tax domicile cannot happen without intent, action and strong resolve.  Likewise, for a foreign non-dom person to acquiring tax domiciled status in Malta requires significant planning and implementation.

Domicile of Origin

A person acquires tax domicile of origin at birth automatically from the father.  Children born out of wedlock or losing their father, automatically adopt the domicile of their mother. Where the country of birth is different from the country of the father’s domicile, the father’s domicile prevails as the domicile of birth of that individual.

The strength of the domicile of origin is demonstrated by the automatic revival of this domicile upon abandoning the domicile of choice without the acquisition of a new one.  The tax domicile of origin remains relevant throughout the life of the person as domicile retains its capacity for revival.

Tax Domicile of Choice

It is very difficult to renounce the domicile of origin. Only upon reaching majority can a person exercise legal capacity to adopt a new domicile – a domicile of choice.  However, the burden of proof of the acquisition of a tax domicile of choice falls upon the taxpayer claiming this change in tax domicile.

To lose one’s domicile of origin one must acquire a domicile of choice. It is not sufficient to leave the country of domicile of origin permanently without clear evidence that the individual has no intention whatsoever to return to the country of his domicile of origin.  In order to do so one must be able to prove that:

  • He is resident in the new country.
  • He intends to reside there permanently or for an unlimited time.

One must be physically present in a country in order to acquire the domicile of choice. One must also consider criteria such as the individual’s business and family interests in the new country of domicile, the ownership of any property there and any remaining ties with other countries.

Tax Domicile by Operation of Law

To establish a definite legal system by which certain rights and obligations may be governed, the objective of the law is that no person shall be without a domicile. This is crucial today, especially because free movement has given not only rights to individuals but also obligations and in the interest of liability, it is necessary to hold that a person cannot posses more than one domicile at the same time.

Given the importance of having a domicile, in situations where one cannot establish the domicile of origin and is unable to make a choice, the law intervenes. The third kind of domicile is the domicile of dependence and it arises by operation of law.

It is a domicile in which the law establishes a person’s domicile, such as in the case of a foundling, where the law provides that a foundling acquires the domicile of the country where he is found.

It has been held that as the domicile of origin requires the child to take the domicile of the father at birth, in the case where either the child’s father is dead or the child is illegitimate, the child acquires the domicile of the mother.

Until one has the legal capacity to adopt a domicile of choice, his domicile of origin will be replaced by domicile of dependence should the person on whom he is legally dependent adopt a domicile of choice elsewhere. This means that until a person reaches adulthood his domicile will shift according to the domicile of the person on whom he is dependent. Women take up their husband’s domicile upon marriage and such domicile is maintained even if they are legally separated or if the husband passes away (Attard, 2005).

Non Dom Status

Foreigners considering taking up residence in Malta under whichever Malta immigration programme or any Maltese special tax programme, will oftentimes enjoy the benefit of non-dom status. Non doms who are resident in Malta are not subject to tax on their worldwide income and instead are subject to tax on income arising in Malta.  Residence can be acquired under the special tax status programme the Malta Global Residence Programme requiring a yearly minimum tax payment of merely €15,000 and an upfront investment of only €6,500.   Alternatively, one can acquire Permanent Residence for life for all the family under the Maltese Permanent Residence Programme by buying or renting a property in Malta.

Malta Tax Domicile Planning

Losing, acquiring or reviving tax domicile requires expert planning by experienced tax lawyers.  For an expert tax consultation on Maltese tax domicile and residence planning, book a meeting with one of our tax lawyers. With over 20 years advising on Maltese personal and corporate tax matters, we look forward to assisting you with planning your relocation, residence or tax domicile in Malta.

Malta Permanent Residence Programme (MPRP) Benefits

Malta Permanent Residence Programme - MPRP Benefits

Since Malta launched the Malta Permanent Residence Programme (MPRP) in 2021, a number of non-EU nationals understood the importance to have a permanent residence in a European country which grants the right to reside permanently in a chosen country.

Malta Permanent Residence Programme

The MPRP grants a permanent residence status within a period of 4-6 months from the submission of an application, making the Malta Permanent Residence Programme (MPRP) one of the most efficient residence programmes in Europe. In addition, the MPRP is unique in the sense that it is the only residence programme to grant permanent residence immediately. As a result, once an application under the Malta Permanent Residence Programme (MPRP) has been approved, the applicant and all qualifying family members can reside indefinitely in Malta and travel to the 26 countries forming part of the Schengen Area without a visa.

One of the main benefits of the Malta Permanent Residence Programme (MPRP) is that it allows the main applicant to include five generations in the same application. This family friendly measure is unique to the MPRP since other residence programmes (golden visas) in Europe impose a maximum age limit to include children, parents and grandparents of the main applicant.

Malta Permanent Residence Programme – Investment Options

The Malta Permanent Residence Programme MPRP offers prospective applicants two investment options to choose from. Applicants may either:

  • Rent a Property and Pay a Government Fee of €98,000, or
  • Purchase a Property and Pay a Government Fee of €68,000

Under both options, once an applicant is approved, a donation of €2,000 to a local charity is also required.

The MPRP is thus the only European residence by investment programme which allows the applicant to rent a property without having to purchase before applying for residency.  In addition, the above investment is only to be done once the application is approved and not at the outset.

Malta Permanent Residence Programme – Addition of Family Members

The MPRP is designed to allow the applicant to include a total of five generations. This includes:

  • Main Applicant and the Spouse
  • Parents of the Main Applicant and/or of the Spouse
  • Grandparents of the Main Applicant and/or of the Spouse
  • Children of the Main Applicant and/or of the Spouse (no age limit, must be financially dependent on the Main Applicant)
  • Future Grandchildren of the Main Applicant and of the Spouse

Malta Permanent Residence Programme – Efficient Process

Once an application is submitted, the government agency will run a four-tier due diligence check on the applicant and the source of funds. A final decision on the application is taken within 4-6 months making this programme the most efficient residence by investment programme in Europe.

Visa Free Travel with the Malta Permanent Residence Programme

Malta is a member of the Schengen Area which is an area made of up 26 countries which abolished borders and allows for the unrestricted movement of people. By obtaining residence under the MPRP, the applicant and qualifying family members are allowed to travel freely within the Schengen Area and stay for 90 days within 180 days.

Right to live permanently in Malta as a Maltese Permanent Resident

The applicant and all qualifying members are given the right to live and settle in Malta for life without any restrictions. There are a number of reasons why applicants relocate to Malta including safety and stability and a pleasant climate with over 300 days of sunshine.

Malta is one of the safest countries to reside in the world. In addition, it is also an English-speaking country making it easy for expats to quickly settle on the island. Crime levels in Malta are exceptionally low in comparison with most EU countries making it the second safest country in the world and first in the EU according to a study carried out by the AfrAsia Bank Global Wealth Migration Review.

Residing in Malta gives beneficiaries the right to access leading healthcare institutions and enlist children in a world-class education system.

Malta Permanent Residence Programme (MPRP) – Full benefits list

The full benefits of obtaining residence under the MPRP can be summarised into the following:

  • Malta is a member of the European Union (EU)
  • Malta is a member of the Schengen Area
  • Malta is a member of the Commonwealth
  • Malta has one of the strongest economies in the EU
  • Malta is economically and politically stable
  • Malta’s official language is English
  • Malta has the Euro (€) as its official currency
  • Malta has a first-class health and educational system
  • Malta enjoys one of the best climates in the world

How can we Assist?

Applications under the MPRP Malta Permanent Residency Programme can only be submitted through a Licenced Agent. Our firm is licenced by the Residency Malta Agency to submit residence by investment applications on behalf of applicants. ACC Immigration holds licence number AKM-ACCA-22. Get in Touch to learn more about the benefits of the Malta Permanent Residence Programme.

 

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