| Malta's permanent residents scheme is a popular one initiated in the early 1960's. Permanent residents are individuals who were not born in Malta and who hold a residence permit issued by the "Expatriates and Nationality Division of the office of the Prime Minister".
A prospective applicant must provide proof that he has worldwide income in excess of Lm10,000 (Lm=US$2.25 approx.) or a worldwide capital in excess of Lm150,000 and that he is able to remit into Malta a minimum annual income of Lm6,000 plus Lm1,000 per dependant. Within 12 months of obtaining the permit, one of the following three conditions must be met:
Either (a) the purchase of a flat in Malta worth at least Lm30,000
or (b) the purchase of a house in Malta worth at least Lm50,000
or (c) the rental or lease of a property for at least Lm1,800 per annum.
A permanent resident is liable to income tax in Malta on a remittance basis. Every calendar year there is obligation to remit to Malta from overseas a minimum income of Lm6,000 plus Lm1,000 for each dependant.
Income remitted to Malta is chargeable to income tax at a flat rate of 15% with a minimum of Lm1,000 per annum. Whilst the permanent resident may be eligible for double tax relief his annual income tax liability may never be less than Lm1,000.
There are no death duties in Malta and a permanent resident is exempt from taxation on capital gains arising outside of Malta even if the gain is remitted to Malta.
Foreign buyers may import free of duty, furniture and other personal effects as well as motor vehicle, provided this is done within six months of taking up residence in Malta.

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