Living in another EU country

Austin Psaila writes:
If one decides to purchase property in an EU country, will that person be entitled to reside in his or her property in that country indefinitely without having to report to any authorities? In other words, does one have total freedom of movement?

If one decides to buy a car registered in that country and drive back to Malta, how long would one be able to stay in Malta in any one stretch of time?

The first issue raised by the reader relates to the right to reside in another EU country.

Indeed, EU citizens do have a right to reside in another EU country. This is a corollary of the basic EU "freedom of movement". Free movement would have little sense if people were not also allowed to reside in another EU country other than their own. So it is clear that, as an EU citizen, the reader is entitled to reside in his property abroad. EU law has long regulated this right and the conditions attaching to it. However, a new law was recently enacted and had to be adopted by all EU countries by April this year.

This new law simplifies the conditions and administrative formalities for enjoying your right of residence, making things more straightforward.

The law gives you the right to reside in another EU country for a period longer than the normal three months. This applies regardless of whether you are working in that EU country, as an employed or self-employed worker, or if you are studying there or even if you are not working but simply residing.

However, if you are not gainfully employed, then you must have sufficient financial resources for yourself and for your family members so as not to become a burden on the social assistance system of the country where you are residing. You must also have a comprehensive sickness insurance cover in the country where you are residing.

Certain administrative formalities may also apply. For instance, you may be required to register your residence with the local authorities of that country. For this purpose you will need to present a valid identity card or passport and evidence on your status and, where applicable, of your financial means.

A registration certificate denoting residence is issued.

Where proof of financial means is required this may not be exorbitantly high. Indeed, no fixed amount may be laid down and your personal situation should be taken into account. In any case, the financial means required shall not be higher than the threshold below which nationals of that country would normally become eligible for social assistance.

So, in essence, the right of residence can only be withheld if you risk becoming an unreasonable burden on the social security system of that country. Which is fair enough.

After a period of five years, you are entitled to permanent residence by virtue of which the conditions mentioned above would no longer apply. You would also be entitled to a certificate denoting your status as a permanent resident. Once acquired, permanent residence is only lost if you are absent from that country for a continuous period of two years.

Let me now turn to the question relating to driving the car down to Malta.

As I understand it, the reader wants to know how long he would be able to keep his car in Malta without having to register it here, thereby incurring car registration tax in Malta.

The answer to this question depends on whether the reader is resident in Malta or not because, in principle, one must register a car (and pay car registration tax) in the country in which one is normally resident.

EU law sets out rules for determining normal residence for this purpose - typically, the place where a person lives for at least 185 days in each year, because of personal and occupational ties.

This issue of residence for the purpose of car registration has often been the subject of examination even at the level of the European Court. But the basic point remains that if you reside in country A and keep a car which is used fairly regularly in country B, where you have your second residence, then that car should be registered in country B and not in country A.

On the other hand, car registration tax is not due in the case of cars that are brought into Malta temporarily for private or business use by a person who has his normal residence outside Malta. In this case, the car can remain in Malta, without being registered here, for a period, continuous or otherwise, of not more than six months in any 12 consecutive months.

It would be advisable to check that your specific situation is covered by the law before moving your car.

Readers wanting to raise issues or ask questions can send an e-mail to contact@simonbusuttil.eu or visit www.simonbusuttil.eu