Welcome to the sun-kissed islands of Malta! If you're a digital nomad, expat, or location-independent worker, obtaining tax residency here can open the doors to a Mediterranean lifestyle filled with rich history, vibrant culture, and a thriving expat community. This guide will walk you through the necessary steps to establish your tax residency in Malta.
Step 1: Establish Physical Presence
To be considered a tax resident in Malta, you must spend at least 183 days in the country within a calendar year. Maintain records such as travel documents, accommodation receipts, and utility bills as proof of your physical presence.
Step 2: Secure Long-Term Accommodation
You need to secure a long-term residence, either by purchasing property or signing a rental agreement. This will be part of the proof of your intention to reside in Malta for an extended period.
Step 3: Apply for a Residence Permit
Submit an application for a residence permit at Identity Malta. Provide necessary documents including your passport, proof of accommodation, health insurance, and financial means to support yourself. This permit is crucial for establishing your long-term stay in Malta.
Step 4: Register for a Tax Identification Number (TIN)
Once you have your residence permit, you need to register for a Tax Identification Number with the Commissioner for Revenue. This TIN will be used for all your tax dealings in Malta.
Step 5: Open a Maltese Bank Account
Opening a local bank account will facilitate your financial transactions in Malta. Banks will require identification documents, proof of residence, and possibly an initial deposit.
Step 6: Notify Foreign Tax Authorities
Inform the tax authorities in your home country about your change in tax residency to avoid double taxation. Provide them with your new TIN and proof of your residence in Malta.
Step 7: File Annual Tax Returns
As a tax resident, you are required to file annual tax returns in Malta. Ensure you declare all your global income and comply with local tax regulations.
Legal References
- Income Tax Act (Chapter 123 of the Laws of Malta)
- Residence Permit Regulations (Subsidiary Legislation 217.18)
- Commissioner for Revenue guidelines on Tax Residency
Useful Links
