Benefits of residence in Malta

In the last two decades Malta has experienced a growing reputation as a high quality living destination and a tax-efficient residence solution in the European Union, these being just two of the Benefits of Residence in Malta.

The Republic of Malta consists of Malta, Gozo and Comino and two small uninhabited islands and is situated in the middle of the Mediterranean Sea. With its geographical location being in the centre of the North African and European trading routes, Malta is a very attractive destination for industrial investment.

The island’s natural scenic wealth, its colourful culture and heritage, political stability and the friendliness of its people have made Malta a unique and possibly one of the best jurisdictions to live in. Malta has been praised for its charming atmosphere and for offering a safe environment.

Having joined the EU in 2004, residents of Malta acquire all the rights that residents of an EU Member State have, including freedom of movement in the Schengen Area and visa free travel to various countries.

In addition, Malta has affirmed its place as one of the EU’s best performers in the 28th edition of the Internal Market scoreboard and Malta’s banks have been ranked amongst the top 5 soundest banks in the world, also passing the European Central Bank’s stress test with flying colours.

Benefits of residence in Malta

Benefits of Residence in Malta are numours, Malta offers a number of benefits to individuals seeking to acquire residence on the island, given its advantageous tax regime and competitive cost of living. Such benefits include:

  • Malta enjoys a rich cultural and social life. Malta has a mild climate, with warm dry summers and mild winters and 300 days of sunshine a year. The cost of living is still comparatively low. Malta also enjoys good standard of living and political stability.
  • A strong and stable financial and banking system.
  • Vaunting agreements with more than 65 countries, Malta presents a sound treaty network that ensures profits generated in Malta are either exempt from tax in the country of residence of the investor, or that such a country will provide a tax credit for the Malta tax spared as a consequence of the incentives Malta provides. Agreements with other countries are currently being finalised.
  • With regard to corporate tax, Malta benefits from the single imputation system that avoids double taxation on companies and shareholders respectively. With a corporate tax rate of 35%, individual shareholders end up receiving a refund of 6/7th on any tax paid in Malta upon distribution of dividends. This makes the effective rate of tax in Malta at 5%.