Understanding De Facto Partnerships in Malta: A Simple Guide

De facto partnerships, also known as common-law relationships, have been gaining legal recognition around the world, as has been the case in Malta for a few years. These partnerships involve two people living together in a relationship similar to marriage, without being legally married. This brief guide will help you understand what a de facto partnership is and what evidence is required to prove it.

What is a De Facto Partnership?

A de facto partnership, also known as a common-law relationship, is when two people live together in a relationship similar to marriage without being legally married. These relationships are recognised for various legal purposes, such as immigration, taxes, and inheritance.

Key features include:

• Cohabitation: The couple lives together.

• Financial Sharing: They share financial responsibilities and resources.

• Social Recognition: Friends, family, and the community acknowledge the relationship.

• Commitment: The couple is committed to each other long-term.

Common-law relationships can offer many of the same legal benefits and responsibilities as marriage, even though the couple hasn't formally registered their union. This, however, depends on the jurisdiction that one resides in.

In Malta, de-facto relationships, also known as cohabitation or common-law relationships, are recognised and offer several benefits similar to those of legal marriages. Cohabiting couples in Malta have legal rights under the Cohabitation Act, including the right to live together without interference and protection against discrimination by landlords or employers. Couples can enter into a cohabitation agreement, which outlines their rights and obligations regarding shared property, helping ensure a fair division of assets if the relationship ends. Partners have a duty to support each other financially, similar to the obligations in a marriage, which include contributing to household expenses and supporting each other in times of need. Cohabiting partners can be recognised as heirs, ensuring they inherit from each other even without a formal will. The relationship is acknowledged by friends, family, and the community, providing social validation and support. Establishing a cohabitation agreement is simpler and less costly than getting married, as it does not require a formal ceremony or extensive legal paperwork. By understanding and utilising these benefits, couples in Malta can ensure their relationship is legally recognised and protected.

Cohabitation and Taxes in Malta

When a couple registers their cohabitation, they may become eligible for certain tax benefits similar to those enjoyed by married couples. One significant advantage is the option to file joint tax returns. By combining their incomes and deductions, cohabiting couples might find themselves in a more favorable tax bracket, potentially reducing their overall tax liability. This can be particularly beneficial if one partner earns significantly more than the other, as the combined income may be taxed at a lower rate than if each partner filed separately.

In addition to joint tax returns, cohabiting couples in Malta may also qualify for various tax deductions and credits. These can include deductions for dependents, medical expenses, and education costs. By pooling their resources and sharing financial responsibilities, couples can maximise these deductions, leading to further tax savings. For example, if one partner incurs significant medical expenses, the combined income and deductions might allow for a larger deduction than if the expenses were claimed individually.

Property ownership is another area where cohabitation can impact taxes. Couples who own property together can benefit from shared property tax obligations and potential exemptions. This means that both partners are responsible for property taxes, but they may also be eligible for exemptions that reduce their overall tax burden. Additionally, if the property is sold, the capital gains tax implications can be more favourable when the property is jointly owned, as the gains can be split between the partners.

Inheritance tax is another important consideration for cohabiting couples. Under the Cohabitation Act, partners can be recognised as heirs, ensuring that property and assets can be transferred between them without significant tax burdens. This recognition can bring comfort, as it ensures that in the event of one partner's death, the surviving partner won't incur prohibitive taxes on inherited assets. This is particularly important for couples who have accumulated significant assets together, such as a home or investments.

Social security contributions are also affected by cohabitation. Cohabiting couples may have implications for their social security benefits, such as pensions and unemployment support. By being recognised as a cohabiting couple, partners can ensure that their contributions are appropriately accounted for, potentially leading to better benefits in the future. This can be especially important for couples planning for retirement or facing periods of unemployment.

Applying for a De Facto Relationship in Malta

Applying for recognition of a de facto relationship in Malta involves several steps and the submission of specific documentation. Here’s a detailed overview of the process:

1. Gather Required Documentation

Before starting the application, you need to collect all necessary documents to prove the authenticity and longevity of your relationship. These documents include:

• Covering Letter: A letter signed by the agent handling your application, explaining the details and purpose of the application.

• Certified Copies of Passports: Certified true copies of both the main applicant's and the partner's passports.

• Certified Copies of Birth Certificates: Certified true copies of both the main applicant's and the partner's birth certificates.

• Proof of Long-Standing Relationship: Adequate proof that the relationship has been ongoing for a significant period (two years is normally the minimum). This may include:

  • Affidavits from relatives or friends confirming their knowledge of the couple's relationship.

  • Bank statements showing transactions between the partners or a joint bank account.

  • Rental or purchase agreements for a joint property.

  • Dated photographs of the couple together.

  • Flight tickets showing travel together.

  • Any other relevant documentation that can substantiate the relationship.

2. Submit the Application

Once you have gathered all the required documents, you need to submit your application. This involves:

• Setting an Appointment: The agent handling your application should set an appointment with the Client Relations and Compliance unit to submit the documents well in advance.

• Online Submission: For third-country nationals in a de facto relationship with a Maltese citizen, the application can be submitted online through the Expatriates Unit Portal.

3. Verification and Interviews

After submission, the authorities may conduct interviews to verify the authenticity of the relationship. This step ensures that all provided information is accurate and that the relationship meets the legal requirements.

4. Approval and Issuance of Permit

If the application for de facto partnership status is approved, the couple should become eligible for a residence permit to be granted on the basis of their newly approved status.

Applying for recognition of a de facto relationship in Malta requires careful preparation and submission of comprehensive documentation. By following the outlined steps and ensuring all required documents are in order, couples can successfully navigate the application process and have their relationship legally recognised.

If you have any questions or need more help with your de facto partnership application, feel free to ask our team at admin@ab.eu!