Malta Tax Residency Certificate

A Malta Tax Residency Certificate (TRC) is issued by the Maltese Inland Revenue Department that confirms on an official level an individual’s tax residency status in Malta. Tax residence certificates are frequently utilised in conjunction with treaties that aim to prevent double taxation. The purpose of these agreements is to shield taxpayers from paying taxes to two different jurisdictions on the same income. To ascertain whether a jurisdiction has the primary authority to tax an individual’s income under such arrangements, a Malta Tax Residency Certificate is frequently necessary. However, being granted the Malta Tax Residency Certificate is subject to the beneficiary satisfying the Maltese Inland Revenue that you’re a tax resident of Malta in terms of Maltese domestic law as stated below from the Revenue Office:

1. ​Residence does not depend on nationality or any other civil status but is a question of fact. A person may be a resident of Malta even if he is also a resident for tax purposes in another country.
2. Presence in Malta for more than 183 days in any particular year amounts to residence in Malta for that year, regardless of the purpose and the nature of the individual’s stay in Malta. An individual who comes to Malta to establish his residence here becomes a resident from the date of his arrival, regardless of the duration of his stay in Malta in any particular year. 
3. A person who lives in Malta on a permanent or indefinite basis is ordinarily resident in Malta. A person who is in Malta for a temporary purpose may become ordinarily resident in certain circumstances. This would apply, for example, to individuals who are in Malta for more than 183 days each year over a long period – say, for three consecutive years. It can also apply to individuals who do not stay in Malta for more than 183 days in any year but who come to Malta regularly over a long period – say, over a period of three years – and establish personal and economic ties with Malta.
4. An ordinary resident loses his residence status if he leaves Malta permanently or indefinitely. If he is temporarily absent from Malta, he continues to be considered a resident here unless his absence is or becomes inconsistent with a residence status. This depends on the circumstances of each case and, in particular, on the personal and economic ties that the individual may have retained with Malta.

Source: cfr.gov.mt (link) Last Updated: 17/08/2022

Tax residency in Malta is a facts-based test and the following factors are usually taken into account to determine the residency of individuals:

• Place of abode
• Physical presence (i.e. more or less than 183 days)
• Regularity and Frequency of Visits
• Intention to reside in Malta
• Ties of birth
• Ties of family
• Business ties

Benefits of a Malta Tax Residency Certificate

The Malta Tax Residence Certificate is evidence of tax residency in a specific country or jurisdiction, making tax reporting easier and avoiding misunderstandings or disagreements regarding tax obligations. Furthermore, tax residence certificates can occasionally result in reduced tax liabilities by enabling individuals, companies, or investors to benefit from double tax treaties that reduce or eliminate taxes on particular types of income for foreign residents, which can be very advantageous for those holding a valid Maltese tax residency certificate.

How Can We Help

In cases where the person cannot determine his/her tax residence, it is ideal to consult with a tax advisor. As Malta tax advisors and Malta Residency specialists, our seasoned experts can guide you through this from a Maltese perspective and work closely with your local tax advisor to ensure you meet your residence and tax goals. Contact us today to discuss your Malta Tax Residency needs and requirements.

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