Ordinary Residence

Ordinary Residence

The concept of ordinary residence in Malta is taking into account several factors which essentially link you to Malta. Some of the factors considered are the duration of your presence in the country, the frequency, regularity and nature of visits of the country, as well as business and family ties.

Moreover, when an individual intends to reside in Malta for a period longer than three months, he is obliged to apply for an e-Residence card. Prior to this application, the applicant is obliged to lease or purchase a property in Malta in order to enhance the link with the Maltese islands. With an e-residence card, one would be considered as a temporary Maltese resident and thus can travel through the Schengen zone with a valid e-Residence card, without the need to procure a Visa.

The tax brackets for basis year 2025 which currently relate to taxation of chargeable income in Malta are as follows:

Single Rates
0 12,000 0% 0
12,001 16,000 15% 1,800
16,001 60,000 25% 3,400
60,001 and over 35% 9,400
Married Rates
0 15,000 0% 0
15,001 23,000 15% 2,250
23,001 60,000 25% 4,550
60,001 and over 35% 10,550
Parent Rates
0 13,000 0% 0
13,001 17,500 15% 1,950
17,501 60,000 25% 3,700
60,001 and over 35% 9,700

 

Furthermore, individuals who are ordinarily resident but not domiciled in Malta and who are in receipt of foreign source income of €35,000 (which is not remitted to Malta), would now be subject to a minimum Malta income tax liability of €5,000 per annum. Moreover, the said minimum tax is not applicable for individuals who are ordinarily resident but not domiciled in Malta and are beneficiaries of a special tax programme here in Malta.

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