Work/Residence Permits in Malta

With hardly enough land area and resources to accommodate its ever increasing population, Malta instinctively tends to adopt a protective stance to immigration movements into the Island. Until now Governments have always applied very rigid immigration policies and foreigners are allowed to come to settle on a permanent/temporary basis, or work in Malta only in exceptional circumstances, that is, where it is felt that they could contribute to the general well-being of the Island.

The following is an overview of certain features, relative to the immigration position of foreigners residing/working on the Island.

1. THE IMMIGRATION ACT

The Immigration Act (Chapter 217 of the Laws of Malta) is the legal instrument which regulates the inward movement of foreigners into the Island.

Amongst other things the said Act provides for

- the exemption from periodical permission from the Immigration Authorities, in respect of the foreign spouses of citizens of Malta and their dependents under 21 years of age, to enable them to reside and to work in Malta (section 4);

- the authorization of temporary periods of stays by foreigners on the Island (section 6);

- the issue of residence permits for indefinite stays in Malta (section 7); and

- the issue of employment licences to foreigners enabling them to work in Malta (section 11).

2. PERMANENT RESIDENCE PERMITS

As far back as the 1960's, Malta has tried to attract foreigners, who would be able to meet certain financial and property conditions, to settle on the Island. The main reason has always been one linked to an economic objective. The settlers would bring foreign exchange to the Island and their spending would generate income into the economy.

Various Permanent Residence Schemes have been launched in the past in this respect. The persons, who satisfy the relative conditions, were/are granted a residence permit that entitles them to remain indefinitely on the Island, precluding them, however, from exercising any kind of work activity in Malta.

Since 1988, a person applying under the said Scheme would have to meet the following financial conditions:

-an annual income of Lm10,000* or the possession of a capital equivalent to Lm150,000;
the remittance to Malta of an annual income of Lm6,000, and an additional amount of Lm1,000 in respect of each dependent. A tax rate of 15% is charged on all income remitted to Malta which is subject, however, to a minimum income tax of LM1,000 per annum.

The residence permit holder is required also to either purchase property valued at not less than Lm50,000 (Lm30,000 in the case of an apartment) or lease/rent property for not less than Lm1,800 per annum.

The Scheme is administered by the Department for Citizenship and Expatriate Affairs, which ensures that the conditions attached to the permits are being adhered to by the holders.

3. TEMPORARY RESIDENCE

Malta also hosts a number of 'temporary' residents. Any foreign national may proceed to Malta, with an entry VISA, if that is required from the foreign national concerned. Nationals from practically all European and Mediterranean countries may remain in Malta for a period of three months from their date of entry under the 'no employment' condition and such 'permit' is endorsed on their passport upon arrival in Malta.

If a person wishes to stay here for a longer period, he or she is required to apply for an extension of stay to the Principal Immigration Officer, Central Immigration Office, Police General Headquarters. Normally such requests are acceded to provided, amongst other conditions that the Principal Immigration Officer may require, the person concerned can satisfy the said officer that he or she has sufficient means at his/her disposal to subsist on.

The foreign national concerned would have to follow this procedure each time he or she wishes to extend the permission that has been granted to him or her by the Principal Immigration Officer, if that person wishes to continue to reside in Malta.

Over the years it has resulted that a number of foreigners, mainly British citizens, have resided in Malta for a considerable period of time under such an arrangement. On the other hand, others extend their stay in Malta for relatively short periods of time.

The Central Immigration Office, which forms part of the structure of the Police Department, is responsible for all the administrative tasks related to temporary residence in Malta.

4. EMPLOYMENT LICENCES

It is Government's policy to grant employment licences in respect of expatriates only in exceptional circumstances. Such licences are issued to employers wishing to engage foreigners for a determined period and for a specific purpose, only after it has been ascertained that every effort has been made to engage a suitable Maltese citizen.

The Department for Citizenship and Expatriate Affairs is the organization responsible for the issue of such licences. An ad hoc Board, which is made up of representatives from different government departments and agencies and which is chaired by the Director of the said Department, examines applications for employment licences and gives its recommendations on the cases that are reviewed.

Licences are normally issued valid for one year and may be renewed further, obviously provided such requests are justified. In certain cases, where the foreigner is an investor in the manufacturing or financial services sectors and holds substantial shareholding in the enterprise, the relative licence may be issued on an indefinite basis.

The number of employment licence holders has fluctuated over the years. Such fluctuations could be linked, in general, to the degree of development, which the Island has undergone from time to time.