Malta Retirement Programme

Malta encourages foreigners to take up residence in Malta. The policy is supported by an attractive tax structure, amongst other advantages. Foreigners residing in Malta are not taxed on their worldwide income but only on Maltese source income and on foreign income remitted to Malta. There are no wealth or real estate taxes. Whilst a tax on capital gains arising from the sale of immovable property does exist, this does not apply to the sale of one’s main residence if owned and occupied for at least 3 years. Malta’s tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions. Certain foreign income remitted to Malta qualifies for a reduced withholding rate of foreign tax (this applies typically to dividends, interest and royalties), or is exempt from foreign tax (this applies typically to private pensions and to certain capital gains). The provisions of each particular treaty entered into by Malta must, however, be consulted to determine eligibility.

Malta is an excellent place to retire at any age (click here for retirement info) hence the introduction of the Malta Retirement Programme appeases the requirements of many EU, EEA or Swiss nationals whose main income is from pensions, retirement schemes and plans and lifetime or temporary annuities. Prospective applicants should always seek advice from an knowledgeable Authorised Registered Mandatory proficient in the various Malta residence schemes so as to assess which Malta Resident Scheme is more suitable for their requirements.

Application requirements

Applications can only be submitted through an Authorised Registered Mandatory

Once an EU / EEA / Swiss national has acquired the right to reside in Malta in terms of a Registration Certificate, one may also apply for a tax status in terms of the Malta Retirement Programme (MRP). Put simply, the entire pension/s must be declared in Malta and the pension/s shall constitute at least 75% of the total income chargeable to tax in Malta. Tax shall be a flat rate of 15% on the gross pension/s that shall be chargeable to tax in Malta. There is a minimum tax liability of €7500 per annum which is increased by €500 for each dependent. Husband and wife must pay a minimum of €8000. All individuals resident in Malta and benefitting from the Malta Retirement Programme must not reside in any other single jurisdiction for more than 183 days in any year and must also reside in Malta for a minimum of 90 days a year averaged over any five-year period.

Application process documents:

• 4 passport sized photographs (colour) for each applicant
• Birth and Marriage Certificate
• Copies of Passports (page of personal details)
• A Police Conduct Certificate in English.
• A declaration on Oath or a Solemn Declaration stating that the individual does not have any ongoing criminal or civil proceedings.
• Original Statement/s from the pension provider stating the full pension details
• Health Cover – this may be either by the transposition of EU Health rights via the S1(E121) or by having private medical healthcare.
• A non-refundable administrative fee of €2500

In order to qualify for the Malta Retirement Programme status, the applicant must either own property or lease property in Malta or Gozo. Lease must be taken for not less than a twelve month period and evidenced by a certified lease agreement submitted together with the application.

The minimum amounts are as follows:

• Purchase of property in Malta €275,000
• Purchase of property in the south of Malta or in Gozo €220,000
• Lease of property in Malta €9,600
• Lease of property in the south of Malta or in Gozo €8,750

Household Effects

EU Citizens may import their household effects into Malta free of VAT and import duties.

Car

EU citizens may register a car in Malta without the payment of any tax provided that they can prove that they have transferred their residence to Malta and have owned the car for 24 months prior to it being brought into Malta. The car must be brought into Malta within 12 months of taking up residence.

We will also personally assist you throughout the documents preparation process and application to ensure success in application. We will also follow on other basic services to facilitate your life here in Malta such as guidance to opening of bank accounts, European Health Insurance, ID cards etc. We also offer recommendations with regards to immovable property purchase and rental. We are not affiliated with any specific estate agents thus ensuring that any third party advice opinion you require from us with regards to real estate purchase or rental is not partial or biased.

John Huber has acted as consultant to the Maltese Government for both the Malta Retirement Programme and the Global Residence Programme. He is authorised to act as an Authorised Registered Mandatory.

For an appointment with our office please contact us at info@johnhubermalta.com or phone us on +356 21337144 and +356 27337144.