The Ordinary Residence Scheme is an attractive residence scheme currently available to individuals seeking to transfer their tax residence from higher-tax countries to safe, prestigious and tax-efficient jurisdictions within the European Union. Malta allows European nationals who have suitable financial means to adequately sustain themselves the possibility of taking up residence in Malta as ordinary residents. Ordinary residents of Malta are able to take up gainful employment and business activities in Malta
In satisfaction of the conditions for successfully applying for ordinary residence in Malta, applicants need to purchase or lease property that will be available to them as their residential property in Malta. Applicants are also required to be covered by a local or international health insurance policy to ensure non-recourse to the local health and social security system.
The tax system applicable to ordinary residents of Malta is a remittance based system of taxation. Accordingly, an ordinary resident is chargeable to tax only on foreign source income that is remitted to Malta and on local source income. Not subject to tax are foreign source income not remitted to Malta and foreign source capital gains, whether remitted to Malta or otherwise.
Ordinary residence is intended for persons seeking to take up residence in Malta and physically live in Malta, possibly even obtaining a work permit to enable them to seek employment in Malta.
