Designed to encourage foreigners to take up residence in Malta, the Malta Retirement Programme offers EU, EEA and Swiss nationals an attractive tax structure, given that they declare their entire pension in Malta, which should constitute at least 75% of their total income chargeable in Malta.
In order to benefit from the Malta Retirement Programme, applicants must:
- Either purchasproperty for over €275,000 (or €220,000 if the property is in Gozo or in specially designated areas in the south of Malta)
- Rent property for over €9,600 p.a. in Malta (or €8,750 p.a. if the property is in Gozo in specially designated areas in the south of Malta)
- Satisfy a fit and proper test
- And finally, applicants may not spend more than 183 days in any one foreign country each year.
Once the application has been approved, participating individuals may benefit from a 15% tax rate, which is charged in respect of foreign income received in Malta under the Malta Retirement Programme. In addition, qualifying individuals may also benefit from the possibility of claiming double tax relief.
Under this programme, there is a minimum tax liability which stands at €7,500 p.a., which will be increased with an additional €500 for each dependent, or special carer wherever applicable. A one-time registration fee of €2,500 is also required and payable to the Maltese Government.
Residence card applications must also be submitted on the basis of retirement in Malta.