Ordinary Residence

Ordinary residence is intended for people living in Malta indefinitely, with the main reasons being to work here, to study or to open a business.It also required that that they register their tax residence on the island. The qualifying criteria depend on the nationality of the individual, as to whether he is an EU national or not. In the case of non-EU/EEA nationals they are required to invest at least € 100,000, or €40,000 if with a Maltese partner. The investment must consist of fixed assets and/or capital used for business purposes. Other conditions apply.

For tax purposes, an individual is normally regarded as being resident in Malta for a particular year if, in that year, his stay in Malta exceeds 183 days. Unless domiciled in Malta, foreigners residing on the islands are not taxed on their worldwide income but only on Maltese source income and certain capital gains and on foreign source income received in/remitted to Malta. Foreign source capital gains are not taxed even if remitted to Malta. The applicable income tax rates are the same as those applicable to local residents, which is charged at progressive rates from 0% up to a maximum of 35%