The Malta Retirement Programme was launched in 2012 through L.N 317 of 2012. The programme was aimed at attracting EU/EEA and Swiss nationals by granting them residency in Malta and a special tax status. However, through L.N 69 of 2020, this programme has been extended to also cover non-EU/EEU and Swiss nationals.
Apart from the obtaining a Maltese residence permit, the other main benefit of this programme is the special tax status it provides. Beneficiaries of the Malta Retirement Programme are subject to a flat tax rate of 15% on foreign sourced income which is received in Malta, subject to an annual minimum tax payable of €7,500 per applicant and a minimum of €500 annually for every dependent.
Any other income will be taxed at the rate of 35%.
An individual who wishes to benefit under this programme must:
- Not be a Maltese national, domiciled in Malta, and nor does he intend to establish domicile in Malta within 5 years from the date of application.
- Be a fit and proper person.
- Holds a qualifying property.
- Show that he is not a person that is benefitting from any other Malta Tax Residency Programme.
- Prove that he is receiving a pension in its entirety in Malta and that 75% of such pension constitutes the applicant’s chargeable income.
- Be in possession of a valid travel document.
- Be in possession of a valid sickness insurance, covering both the applicant and the dependents, in respect of all risks across the EU.
The beneficiary must undertake either of the following:
- Buy a property with a minimum value of €275,000. This amount is reduced to €250,000 if the beneficiary purchases property located in Gozo.
- Rent a property for a rent of €9,600 annually. This amount is reduced to €8,750 if the rented property is located in Gozo.
The following are eligible to enjoy residual benefits from the main applicant:
- The spouse or person with whom the beneficiary is in a stable or durable relationship.
- The beneficiary’s unmarried minor child, including the child of the spouse.
- Children who are not minors but are financially dependent on the applicant.
- Children who are unable to maintain themselves due to circumstances of illness or disability of serious gravity.
The dependent cannot be benefitting from any other Maltese Tax residency programmes and must also be residing at the qualifying property.
Whoever wishes to benefit from such programme must do so by applying through the services of an Authorised Registered Mandatary. The administrative fee payable for an application under this programme is €2,500.
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