Taxes
Malta — Tax: Tax Residency
Malta's tax-residency rules are governed by the Income Tax Act (Chapter 373 of the Laws of Malta). A person is considered tax-resident if they are physically present in Malta for at least 183 days in a calendar year. This summary focuses on tax-residency requirements for individuals and entities.
Why this matters
Understanding tax-residency is crucial for individuals and entities relocating to Malta, as it affects tax liability and other obligations.
Key facts
- A person is considered tax-resident if they are physically present in Malta for at least 183 days in a calendar year.
- Tax-residency is determined on a calendar year basis, not a fiscal year.
Steps
- Obtaining a Maltese residence permit — A person intending to become tax-resident in Malta must first obtain a residence permit, which is typically issued by the police upon registration with the relevant authorities.
- Registering for tax purposes — Once a person has obtained a residence permit, they must register with the Malta Income Tax Department and obtain a tax number, which is required for tax purposes.
Costs
- Residence permit application fee: €50-100
- Tax registration fee: €50
Timelines
- Obtaining a residence permit: 2-6 weeks
- Registering for tax purposes: 1-2 weeks
Required documents
- Valid passport
- Proof of address in Malta
- Proof of income (if applicable)
Common mistakes
- Failing to register with the Income Tax Department in a timely manner
- Not obtaining a residence permit before applying for a tax number