Retiring in Malta

During 2012 the Government of Malta introduced the Malta Retirement Programme. The objective of this scheme is to attract nationals of the EU, EEA and Switzerland who are not actively in employment and in receipt of a pension as their main source of income, to retire in Malta.

Individuals benefiting under this Scheme are allowed to hold non-executive posts on the board of a company resident in Malta. They may also take on activities within any institution, trust, foundation or similar body that are engaged in philanthropic, educational, or research and development work in Malta.

Applicants must meet the following criteria in order to become eligible under this scheme:

An applicant must own or rent immovable property which is occupied as his principal place of residence worldwide. Thresholds covering the value of property owned have been established under this scheme and vary between properties in Malta and Gozo.

The applicant must not be a beneficiary under the any of the following Tax Regulations: a. Residents Scheme Regulations;

b. High Net Worth Individuals Rules; or

c. Highly Qualified Persons Rules.

However an applicant may renounce his benefits provided under any one of these schemes prior to submitting an application under this scheme.

Applicants must either be an EU national or a national of Iceland, Norway or Liechtenstein or a national of Switzerland.

Applicants must be in receipt of a pension. An individual is deemed to be receiving a pension if he is in receipt of periodic payments paid in respect of past employment or remuneration paid as lifetime or temporary annuities or regular income from an occupational retirement scheme, personal overseas retirement plan or insurance policies. Furthermore this pension needs to constitute at least 75% of the individual’s Malta chargeable income for any particular tax year. Therefore for any particular tax year, an individual’s chargeable income needs to be made up of at least 75% pension and 25% of ‘other’ income.

Applicant must be in possession of a valid travel document.

Applicant must be in possession of sickness insurance which covers himself and his dependents in respect of all risks across the whole of the EU.

Applicant must not be domiciled in Malta.

Applicant must be a fit and proper person.

Tax Treatment

An individual who has been granted special tax status in accordance with the MRP will be subject to a rate of fifteen cents (0.15) on every euro thereof on any income that is received in Malta from foreign sources by the beneficiary or his dependents. Other chargeable income not charged to tax at this rate will be charged to tax at the rate of thirty-five cents (0.35) on every euro. This may include bank interest received from a local source or dividends received from a company registered in Malta. As indicated previously, this type of income may not exceed 25% of the beneficiary’s chargeable income.

Beneficiaries of special tax status in terms of the MRP will need to pay a minimum tax of seven thousand five hundred euro (€7,500) annually and a further five hundred euro (€500) in respect of every dependent and every special carer.

For further information contact

  • David Borg

    Partner

    David is a Chartered Accountant and a Fellow of the Association of Chartered Certified Accounta... More

    T +356 2549 6000

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