Exemptions from Malta registration tax & import duty when taking up Malta residence
Published on 3/05/2009
Foreigners considering Malta residence should be aware of the exemptions from Malta registration tax and other import duties which may apply to the importation of their personal belongings into the country.
Malta Import Duty
Within the territory of the European Union, customs duties between Member States are prohibited and therefore, as a rule, no customs duty should be charged when someone imports goods into Malta from a Member State of the EU. This is a rule which emerges from the Treaty establishing the European Community and applies independently of whether the importation is made by a Community national or a third country national.
Moreover, subject to certain conditions, personal property imported by natural persons transferring residency to Malta from a third country is also admitted free of import duties. For this exemption to apply, however, such property must have been imported within twelve months from the date of establishment of Malta residence. The ‘personal property’ referred to in this paragraph includes, in particular, household effects, cycles and motor cycles, private motor vehicles and their trailers, camping caravans, pleasure craft and private aeroplanes.
Malta registration tax applicable to cars and other motor vehicles
Cars and private vehicles are typically subject to high Malta registration tax when these are purchased by persons residing in Malta. However, exemptions from such taxes apply when a private individual brings permanently into Malta from abroad a motor vehicle when he takes up residence in Malta from a place outside Malta. This exemption is subject to the fulfillment of the following conditions which must be met by the person seeking Malta residency:
(a) The person applying for the exemption must have been residing outside Malta for a continuous period of more than 24 months before taking up Malta residence
(b) The motor vehicle must have been in his possession and used by him outside Malta for at least twenty-four months before the date on which he ceased to have his residence outside Malta;
(c) The vehicle must be registered in his name or in the name of his or her spouse where applicable;
(d) That person must hold a valid driving licence;
(e) The vehicle must be imported or brought into Malta within twelve months from when the individual takes up Malta residence;
(f) The motor vehicle should not be sold, given away, disposed of, hired out or lent following its importation or its bringing into Malta unless the vehicle registration tax to which the exemption aforesaid relates is paid thereon;
(g) The, so called “exemption application processing fee” of €300 is paid to the Malta Transport Authority.
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