It is possible and indeed common to settle in Gozo as a "temporary" resident indefinitely. In fact, many of the expatriates who have lived in Gozo for decades are legally temporary residents. This article outlines the advantages and process involved.

Any foreign national who comes to Malta as a tourist may, at the end of the three-month period after entry, apply for an extension of stay on the same 'no employment' basis as when they entered (note that this means no employment within Malta and you may provide services for remuneration outside of Malta). You can continue to apply for extensions an unlimited number of times. Generally your first extension will be for a further three months and then subsequent extensions will be for six and then eventually 12 months.

Temporary residents are permitted to buy residential property over a minimum purchase price. See the real estate section for more details.

In Gozo, application is made at the police office in Victoria (see the article Extending your Visa). These permits are usually granted as a matter of course (and if for some reason it were not, a day trip to Sicily would entitle you to another three months of residence upon your return to Malta). You may be requested to provide a bank statement or other evidence of minimal financial solvency.

If you spend more than six months in any one calendar year in Malta you will be required to pay income tax on only the income you bring into Malta to live. Tax treaties are in place with many countries to prevent double taxation. See the taxation section for details.

Also read the article on the relative merits of permanent residence versus temporary residence.