How to register as an economically self-sufficient resident in Malta

europe
malta

(Thomas K. Running) #1

Okay, this will be a pretty short and sweet article.

As an EU, EEA, or Swiss resident it’s quite straight-forward to register as an economically self-sufficient resident in Malta.


This is a companion discussion topic for the original entry at https://nomadgate.com/register-as-self-sufficient-malta/

(Wissem ) #2

Only eu people?


(Thomas K. Running) #3

I already replied to you in another thread, but yes, the ordinary residency scheme is for EU/EEA nationals. For other options, have a look at this website.


(Wissem ) #4

The same doc needed?


(Wissem ) #5

Thank you a lot , but the site not specify the docsneeded , the same?


(Blonde) #6

1) shall this '€14,000 in your bank account' be in Malta or foreign bank?
2) Health insurance covering both in-patient and out-patient treatment. Bring your insurance policy document > how much cost cheapest one? is there anyway to get it free, as some banks offering free health insurance for traveling for active customers?
3) A rental contract is not strictly required, but could be helpful to make sure your address is spelled correctly > an rented postal address can be ok? (no contract)
4) how many days per year shall I stay in Malta to keep my 'ID/e-residence card' ?
5) can I use this as domicile-ation proof for banks?

6) Also is getting this cheaper than £4xx annually? if no, why shall I leave registering a offshore company in 0 tx on foreign income countries and apply for tx residency in Malta? As my main source of applying for these, is changing domicil-ation or tx residency for banks or companies I do business with. Why this self-sufficient is better that registering company in 0 tx country overall?


(Thomas K. Running) #7

1) It can be in any bank. Ideally the statements should be in English, if not you should have them translated.
2) I'm guessing you can get something around $50 per month, with high deductibles.
3) I'm not sure, but I think a residential address is best, at least when first registering.
4) There is no set limit that I've been able to find. I've heard three months, but I don't think that's an absolute minimum. Again, since Malta is in Schengen they don't necessarily know exactly how many days you spend there per year.
5) That would depend on the bank, but as residency proof it'll probably work with most, especially if you have some bills or bank statements with a matching address.
6) You can't compare a personal residency with an offshore companies. Most "zero tax" offshore companies aren't really zero tax if you're resident of most western/high tax countries (unless you commit serious tax evasion, which I would strongly advice against).


(Dr Mike) #8

Great guide!

I am wondering if you still need to apply for an SSN. Also how do you declare income tax for income from a foreign company? Does your foreign company need to apply for any local employer license?

Cheers


(Michèle) #9

Hi Thomas

I highly appreciated your article. It's easy, short and clear. I love the fact that you have also explained the way to the counter at Identity Malta.

However, I still have some questions, also in light to the The Budget Measures Implementation Act, 2018. It concerns my boyfriend's plans. Would you recommend to look for professional assistance in our case? Here the facts:
I am in Malta since May having a two year working contract with a Maltese company. I will soon apply for Residency. My boyfriend joined and wanted to apply as an economically self-sufficient resident in Malta. He is Swiss, I am German. Recently I have learned that as to the before mentioned act, he would have to pay EUR 5K yearly taxes. Is this correct? He actually wants to work in Malta, but first wants to do an English school. Would you recommend that he should apply for work (and look for a job) directly instead of the self-sufficency residency?
In addition, I am still confused about the health insurance. Does this have to be a Maltese insurance because we are both insured in Switzerland for any incident in or outside of Switzerland.
And last but not least: I have signed a rental agreement in my name, but my boyfriend is of course living with me. Internet and mobile phones are in my name, too (all in one package). How can he proof his address?


(Liliana) #10

Hi Michèle, thanks for posting this! I missed this new legislation, thanks to your post I read about it.
5k euro min tax only applies if you have a min of 35k euro income worldwide - would this apply to your boyfriend? The only thing to be careful about how the tax year is structured. For example, in Malta tax year is calendar year. If somebody works and earns e.g. from Jan - May outside Malta and makes >35k and then goes to Malta and lives for the rest of the year, then he’d become a tax resident in Malta for that year. I think in this case the 5k rule would kick in, even though the income was earned before the move to Malta. It would not apply if you worked July-December, earned >35k, and move to Malta in Jan.
Disclaimer: I am not a lawyer or tax advisor.

One thing, once you get your residency card, would you mind posting what kind of card is it - ordinary residence card, or permanent residence card? (or something else altogether!) I think it will be ordinary residence card, but I find some of the info a bit confusing so wanted to double check with someone who actually gets one! :slight_smile:

Links to appropriate legislation:
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28986&l=1
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11755&l=1


(G) #11

I tried to apply today but was told that my €2,000 per month income was not enough, and they refused to give me any further information. Not helpful at all!


(Sam) #12

Hi ! Thanks a lot for all the valuable informations on this website !

I’ll be moving to Malta and I’m still looking for health insurances.

Does the SafetyWing insurance qualify as “Health insurance covering both in-patient and out-patient treatment” ? I’ll still have my primary health insurance from my home country so I guess the answer to my question is yes but this topic is quite complicated.

Thank you !


(Thomas K. Running) #13

Hi Sam. If you’re moving to Malta then Malta will be your new home country. And since SafetyWing only covers you for a limited time in your home country—plus it’s not a primary health insurance—it’s not suitable. Even though it of course covers both in and outpatient care.

Have a look at MSH International for decent option (I’d recommend a €750 deductible), or alternatively IMG with a high deductible (e.g. $2,000) if you want as small premium as possible.


(Sam) #14

Thanks for your answer.
Well I meant using safetywing temporarly, at least to apply for the maltese residency as my primary health insurance should be valid for 1 year after I leave.
By the way, I saw that you’ll write an article on banking in Malta. The 2 most important banks (HSBC and BOV) have fees for transfers (outgoing and ingoing). N26 look better. What’s your point of opening a bank account in Malta ? I don’t see what they offer that N26 don’t, maybe a savings acount ?


(Thomas K. Running) #15

The problem is that the Maltese authorities might not accept SafetyWing, given that it’s not a primary health insurance. If you just want something cheap to meet the requirements, then look at IMG with a high deductible. It cost me $500 for a year.

You can use another bank in the SEPA region without issue. However, you shouldn’t use N26 as your primary bank in Malta (or Cyprus)—including paying rent with it etc. They will close your account.


(Carlos) #16

As an insurance to meet the requirements of Identity Malta, you can use this one from Laferla. The coverage is only for hospitalization in Malta, but it works just to meet the requirements. It should cost around €200/year.