Malta’s “resident non-domiciled” tax scheme offers a highly attractive solution for efficient income tax reduction, provided the individual obtaining this status does not maintain their primary center of vital interests in another country.
An individual with “resident non-domiciled” status in Malta is subject to taxation only on income derived from local sources (any income generated within Malta) and on capital gains originating domestically. Regarding foreign-source income, such individuals are taxed solely on amounts remitted to Malta.
In practical terms, an individual holding “resident non-domiciled” status who generates profits outside Malta and refrains from remitting these profits to Malta may avoid income tax entirely.
Malta offers tax residency through several programs, including the Residence Programme Rules (2014), Residents Scheme Regulations, High Net Worth Individuals Rules, Malta Retirement Programme Rules, Global Residence Programme Rules, Qualifying Employment in Innovation and Creativity Rules, and Highly Qualified Persons Rules.
The primary program for European Union and European Economic Area citizens is the Residence Programme (2014). Participants must purchase or lease property in Malta as their primary worldwide residence. Property purchases require minimum values of €275,000 (for properties outside southern Malta) or €220,000 (for southern Malta or Gozo). Rental options require annual fees of at least €9,600 (Malta excluding the south) or €8,750 (Gozo or southern Malta), with lease terms of minimum twelve months and proper documentation.
Applicants must satisfy additional requirements overseen by the Office of the Commissioner for Revenue (Inland Revenue Department), including comprehensive health insurance covering the applicant and dependents throughout the EU. This insurance must be obtained through a Malta-licensed company or reputable international insurer.
