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Malta Retirement Programme

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The Malta Retirement Programme (MRP) is designed to attract foreigners to take up residence in Malta – an excellent place to retire at any age. Amongst other advantages, an attractive tax structure supports the programme. It encourages nationals of the EU, EEA and Switzerland who are not in an employment relationship and are in receipt of a pension as their regular source of income.

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:
  • Flat rate of 15% on the gross pension/s that shall be chargeable to tax in Malta.
  • The entire pension/s must be declared in Malta.
  • The pension/s shall constitute at least 75% of the total income chargeable to tax in Malta.
  • A minimum tax liability of €7500 per annum plus an additional €500 for each dependent. A married couple must pay a minimum of €8000.
  • A beneficiary of the MRP must not stay in any other jurisdiction for more than 183 days in a calendar year.
  • A beneficiary must reside in Malta for a minimum of 90 days a year averaged over any five-year period.
  • Health cover.
  • Applications can only be submitted through an Authorised Registered Mandatory.
  • A non-refundable administrative fee of €2500.
  • The applicant must either own property in Malta or Gozo.
    • Minimum Property Purchase Price:
      • Property purchased in Malta €275,000.
      • Property purchased in Gozo €250,000.
  • Or Lease of Property in Malta or Gozo for not less than a twelve month period and evidenced by a certified lease agreement submitted together with the application.
    • Minimum Property Lease Price:
      • Property Leased in Malta €800 monthly (€9,600 annually).
      • Property Leased in Gozo €729.17 monthly (€8,750 annually).
Source

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.

Downloads

Guidance Notes

Application Form

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.