Holiday Home
An EU citizen who wants to buy a property in Malta to enjoy as a holiday home whilst still residing in another country for the rest of the year may do so. One will have to apply for a permit, which will be granted, subject to conditions such as the value of the property which must be of at least €81,528 in the case of a flat and €140,000 for a house.

Second Property
An EU citizen who already owns a holiday home in Malta wants to buy another property in Malta can only do so if he has first resided in Malta for a period of five years. Unless the property is in a “Special designated Area”.

Permanent Residence
A foreign EU citizen who wants to settle permanently in Malta and wants to buy property to live in may do so. No authorisation is required and no threshold for value applies because the residence will be used as a primary residence and not as a holiday home. No Authorisation is required when an EU citizen who has settled permanently in Malta wants to purchase property that is connected with his business activities in Malta. Other than this, an EU citizen will not be able to buy more property in Malta until he has been here for five years, or unless the property is in an area that is Specially Designated .

This status is primarily of people wishing to benefit from the extremely favorable rate of 15% tax. To qualify for the tax concession that permanent residents permit holders enjoy, a person must have an annual income of €23,294 or a proven capital of €349,500. This capital does not have to be brought into Malta except for the amount needed to purchase a property should the applicant so desire. The minimum annual income to be remitted to Malta is €14,000 for one person, plus €2329 for each dependent. A married couple would have to bring in €16305. Income remitted to Malta less personal deductions is charged to tax at a flat rate of 15%. with a minimum tax liability of €4150 .

Alternatively EU citizens may also live in Malta on the basis of an EU Residence Permit which only imposes that one shall not be a burden on the state. In the latter case, any income arising in Malta or any income arising outside Malta that is received in Malta is subject to tax at the normal rates of tax. There are personal allowances for 'married' couples or 'single' individuals. Spouses who are both in receipt of a pension may have their pensions brought to charge to tax separately.

Any unspent income in excess of the minimum requirements may be repatriated. Proceeds from the sale of the residents property and / or other investments in Malta may also be repatriated. Double taxation agreements already exist with most European countries.