Malta Retirement Programme Rules

This program applies to individuals, their family and dependents who wish to retire in Malta.

The applicant must be an EEA national (EU, Iceland, Norway & Liechtenstein) or a Swiss national.

The spouse and children are considered to be dependents.

General conditions

The applicant

  • should be in possession of sickness insurance for himself and his family;
  • should be in possession of a valid travel document;
  • should meet the fit and proper person criteria;
  • should spend an average of 90 days a year over a period of 5 years;
  • should receive all his pension in Malta and this is also his minimum remittance requirement;;
  • should sign a declaration of compliance to conditions;
  • is required to pay a non-refundable administration fee of €2,500.

Exclusions

The applicant

  • should not be a Malta national or domiciled;
  • should not benefit under any other tax scheme or programme. Benefit under the latter schemes and programmes may be renounced;
  • should not be a 3rd country national (non EEA);
  • should not intend to establish domicile within 5 years.

Property

The applicant

  • is required to purchase a property for a value of not less than €275,000 in Malta and €220,000 in Gozo & the South region; or
  • to rent a property for an annual rent of not less than €9,600 in Malta or €8,750 in Gozo & the South region;
  • occupy the property as his primary residence.

Property may be held jointly by spouses and should only be occupied by the applicant, his dependents and special carer.

Termination provisions

The applicant would loose his status under this programme if he resides for more than 183 days in any other country.

Taxation

The applicant

  • would be taxed in Malta at a final flat rate of 15% on foreign source income remitted to Malta to himself and his dependents;
  • would not be taxed in Malta on foreign source income not remitted to Malta;
  • should declare all emoluments for Malta Income Tax purposes;
  • should not have (together with his spouse) Malta Source income that exceeds 25% of his chargeable income in Malta;
  • would be taxed in Malta at a flat rate of 35% on the Malta source income of the applicant and his spouse;
  • is required to pay a minimum tax of €7,500 plus €500 per dependent or carer annually on foreign source income remitted to Malta.

The applicant should be in receipt of a pension that exceeds 75% of his chargeable income.

The above is only intended to highlight the main features of the programme and more detailed rules apply.
Please contact David Marinelli directly or contact us for further information or assistance.

Note: Where masculine terms are used both genders are intended.