Amendments to Malta Tax Schemes

The Malta Retirement Programme (“MRP”), the Global Residence Programme (“GRP”), the Residence Programme (“TRP”) and the United Nations Pensions Programme ("UNPP") have been recently updated through the publication of LN 69 of 2020. Such updates are effective from 1 January 2020.

e Malta Retirement Programme

This programme has been extended also to individuals who are not EU or EEA  nationals. In this regard, the definition of the term “beneficiary” has been extended accordingly.

The definition of “household staff” has also been updated. The term household staff is now defined an individual who is in an employment  relationship,  as  evidenced  by  a  contract  of service,  with  the  beneficiary  and  who  satisfies  such conditions.  This means that the requirement that the household staff has to be in an employment relationship, with the beneficiary for at least two years prior to the application no longer applies.

The amended rules provide that, following the death of a beneficiary, the special tax status granted through these rules shall  be  granted  to  a dependent of that deceased beneficiary who has inherited the property that was the primary residence of such beneficiary, or who  rents  a  qualifying  rented  property  immediately  after  the death  of  the  said  beneficiary  and  satisfies  all  the  other requirements  set  out  in the Regulations.  Such  status  shall  only  be transferred  once  the  said  dependent  provides  proof  to  the Commissioner that all the requirements of rules are satisfied in such manner as the Minister for Finance may determine further to consultation with the Commissioner.

The amended rules include a definition of the term “permanent resident of Malta”. The term is defined as:

(a)  a  person  who  has  right  of  permanent residence in terms of article 6 and is in possession of a permanent residence certificate issued in terms of

article 7 of the Free Movement of European Union Nationals and their Family Members Order; or

(b)  a  person  who  applies  for  right  of permanent residence in terms of article 6 of the Free Movement  of  European  Union  Nationals  and  their Family Members Order”.

An  individual  who  falls  under  the  definition  "long-term resident" or  "permanent resident  of Malta" shall be taxable on any income accruing in or derived from Malta or elsewhere, and whether received in Malta or not at the standard progressive rates of taxation and hence the 15% flat rate of taxation cannot be applied.

For more details about the Malta Retirement Programme click here

The Global Residence Programme, The Residence Programme; and The United Nations Pensions Programme

The common update for all the above captioned programmes relates to transfer of the Status under the respective programme following the death of the beneficiary. Following such updated, such  status  shall  only  be  transferred  once  the  said dependent  provides  proof  to  the  Commissioner  that  all  the requirements of the Rules are satisfied in such manner as the Minister for Finance  may  determine  further  to  consultation  with  the Commissioner.

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Tax Schemes

A number of schemes apply to individuals and their family when they relocate to or retire in Malta.