Malta Retirement Programme
Foreigners residing in Malta are not taxed on their worldwide income but only on Maltese source income and on foreign income remitted to the island. Malta has no wealth or real estate taxes. Whilst a tax on capital gains arising from the sale of immovable property exists, this does not apply to the sale of the main residence if owned and occupied for at least 3 consecutive years. Malta’s tax legislation provides for relief from double taxation, whether through double tax agreements negotiated with a substantial number of countries worldwide, or through unilateral provisions. Dividends, interest and royalties, remitted to Malta qualify for a reduced withholding rate of foreign tax. Private pensions and certain capital gain tax are exempt from foreign tax.
Individuals benefitting from this Programme may hold a non-executive post on the board of a company resident in Malta. This implies that the beneficiary would be prohibited from being employed by the company in any capacity. Such individuals may also partake in activities related to any institution, trust or foundation of a public character and any other similar organisation or body of persons, which are also of a public character, that is engaged in philanthropic, educational or research and development work in Malta.
Benefits, Conditions & Administrative Fees
Nationals of the EU, EEA and Switzerland, once acquired the right of residency in Malta in terms of an EU Registration Certificate, may also apply for the Malta Retirement Programme tax status. The following are the benefits and conditions regulating the programme:
All the above information is an extract from the Inland Revenue Department website.
For further information click here to visit the official Inland Revenue Department web site.
Authorised Registered Mandatories
The above file is in Acrobat pdf format. Click here to download the pdf reader for free.
Relocate Malta is neither a tax consultancy body nor an authorised Registered Mandatory for the Malta Retirement Programme. For further information kindly contact your preferred Registered Mandatory.