Malta retirement tax programme: Retire in Malta & pay 15% tax
An attractive Malta Retirement Tax Programme has been launched for EU/EEA/ Swiss nationals retiring in Malta
An optional Malta retirement tax programme applies for EU nationals. Under this retirement programme, beneficiaries retiring in Malta will be granted a special tax status which entitles them to a personal Malta tax liability of 15% on any income arising outside Malta which is remitted to Malta, subject to a minimum Malta tax liability of €7500 per year of assessment plus €500 per dependent. Other chargeable income (essentially local source income) would be subject to Malta tax at a flat rate of 35%.
Applicants retiring in Malta under the Malta retirement tax programme must be retired EU nationals (non-Maltese & non Maltese domiciled) who are willing to retire in Malta and who :
- are comprehensively insured for health risks in Malta & the EU in respect of themselves and their dependents;
- are in receipt of a pension. All the pension received by the beneficiary retiring in Malta must be remitted Malta. This should constitute at least 75% of the beneficiary’s chargeable income. However, beneficiaries are not obliged to remit foreign non pensionable income.
- buy property worth at least €275,000 for Malta or €250,000 for Gozo OR rent property, with a minimum annual rent of €9600 for Malta or €8750 for Gozo.
- spend a minimum of 90 days in Malta per annum (averaged over a five year period) and not reside in another single country for more than 183 days in any calendar year.
- possess a clean police conduct certificate and the required documentation to prove they are fit and proper persons.
Other aspects to consider before deciding to retire in Malta
Before deciding on retirement in Malta it is fundamental to examine any applicable double tax treaties. Indeed the Malta retirement tax programme would be quite useless if the pension of the person retiring in Malta is also taxed in his home state. Malta has concluded many double tax treaties with various EU Member States (e.g. UK, Spain, Italy & Austria) in which the general rule is that pensions are only taxed in the State of residence and not in the State paying the pension. This rule is subject certain exceptions and anti abuse provisions on remittance.
Application fees for the Malta retirement tax programme
The Government application fee is of €2,500. The application must be submitted by an authorised representative.
Persons considering retirement in Malta should contact us for a quote for our services of authorised representative for the Malta retirement tax programme.
Link: full rules of the Malta retirement tax programme
Persons considering retirement in Malta should contact us for a quote for our services of authorised representative for the Malta retirement tax programme.
Link: full rules of the Malta retirement tax programme
