The Malta Retirement Programme

Malta Retirement Programme & Special Tax Status

By virtue of the inclusion of the Subsidiary Legislation 123.134 to the Maltese Income Tax Act, a special tax status has been issued for retirees from EU, EEA countries and Switzerland when remitting their pension into Malta. This means that a fixed tax rate of 15% will be due on the pension remitted, and the minimum tax payable shall be of €7,500 for the beneficiary and €500 for each of his/ her dependants (if any).

The Malta Retirement Programme Rules 2012 outline the salient conditions and features for one to benefit from the rules as follows:

  • The beneficiary must be an EU/ EEA/ Swiss national who is not in employment;
  • The beneficiary may hold a non-executive post on the board of a company resident in Malta or partake in activities related to any institution, trust or foundation of a public character and of any other similar organisation or body of persons, also of a public character, which is engaged in philanthropic, educational, or research and development work in Malta or Gozo;
  • The beneficiary must purchase or rent property in Malta or Gozo. The rules establish minimum values of €275,000 (Malta), or €250,000 (Gozo) for purchased properties whilst for rented properties these minimum values are set at €9,600 per annum (Malta), or €8,750 (Gozo);
  • The pension which is received in Malta, must constitute at least 75% of the beneficiary’s chargeable income. Therefore, the beneficiary may only generate up to 25% of his/her total chargeable income from any non-executive posts;
  • The beneficiary must have health insurance in respect of all risks across the all the EU (also covering her/ her dependants, if any);
  • The beneficiary must not be domiciled in Malta and should not have any intention of so establishing his/her domicile in Malta within a period of 5 years;
  • The beneficiary must reside in Malta for a minimum of 90 days in each calendar year (the mentioned 90 days are averaged over any 5-year period); and
  • The beneficiary must not reside in any other jurisdiction for more than 183 days in any calendar year during which the retirement programme is availed of.