MALTA Law and Practice Contributed by: Rosanne Bonnici and Rebecca Diacono, Fenech & Fenech Advocates
Tax residence Individuals may become tax-resident in Malta in one of two ways: • by spending 183 days or more in Malta over a 12-month period; or • by moving to Malta with the intention to reside in Malta indefinitely, basing themselves in Malta and only spending as much time away for business or leisure purposes as would be in line with a claim that they are residing in Malta. Citizenship Individuals may become a citizen of Malta by birth, registration or naturalisation. Individuals born in Malta to a Maltese parent are auto - matically considered a citizen of Malta by birth. Individuals married to and living with a citizen of Malta for at least five years may apply for Maltese citizen - ship, as can a widow or widower of a citizen of Malta. A direct descendant or second- or subsequent-gen - eration descendant born abroad to a parent born in Malta, whose own parent was also born in Malta, may also apply for Maltese citizenship. An individual may apply for citizenship by naturali - sation if they have physically resided in Malta for an aggregate period of five years in the previous six-year period. In practice, however, it is understood that the authorities have not been as forthcoming as one might wish in this context, with residents at times having to wait significantly longer to secure citizenship. 7.2 Expeditious Citizenship Malta’s Citizenship by Merit Regulations (Subsidiary Legislation 188.06) establish discretionary citizenship by naturalisation for individuals who have rendered or are expected to render, an exceptional contribu - tion or service to Malta or humanity. The regulations are primarily aimed at distinguished persons in fields such as science, research, technology, entrepreneur - ship, sports, arts, culture and philanthropy. Applica - tions are subject to a multi-stage process involving rigorous due diligence, assessment by an independ - ent Evaluation Board and final approval by the Min - ister responsible for citizenship matters. Applicants
are generally required to obtain Maltese residence, maintain residence in Malta for at least eight months prior to applying for citizenship, demonstrate links to Malta and provide evidence of their exceptional merit or contribution. Dependants may be included in a family application. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms The Trust and Trustees (Protected Disability Trusts) Regulations establish “protected disability trusts”, which must adhere to the following conditions: • they must be set up by a family member, as defined, of the person having a disability; • they must be for the benefit of a person who has a disability, where the person is entitled to benefit in an exclusive manner, save for certain exceptions, such as the parents being beneficiaries during their lifetime, with the person with a disability becoming a beneficiary upon the parents’ death; and • the authorities must be notified of the existence of the trust. The ITA and DDTA both cater for certain exceptions and exemptions for income and capital gains derived by the trustees of a protected disability trust, subject to statutory conditions. 8.2 Appointment of a Guardian Under the Civil Code, the appointment of a tutor for minors is made by court order upon the request of any person. However, the appointment of a guardian over a person who has attained the age of majority does not need to be made before the courts. An application to appoint a guardian is to be made to the Guardianship Board and supported by evidence that the individual’s medical condition renders them not in a position to manage their personal affairs. On application, the reason for guardianship must be indi - cated. In the case of a general guardianship, it is reas - sessed every six to 12 months.
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