The Malta Retirement programme

This programme is designed for EU, EEA and SWISS nationals who are in receipt of a pension as their regular source of income.

Special tax rates

An individual who has been granted this special tax status will be subject to tax at the flat rate of 15% of any income that is received in Malta from foreign sources by him or his dependents.

Conditions to satisfy

  • The Individual is a national of the EU, Switzerland, Iceland, Norway or Liechtenstein;
  • The individual is not domiciled in Malta and does not intend to establish his domicile in Malta in the next five years;
  • He is in receipt of a pension which can take the following form:
  1. Periodic payments paid in respect of past employment; or
  2. Remunerations paid as lifetime or temporary annuities; or
  3. Regular income from an occupation retirement scheme, personal overseas retirement plan or insurance policies;
  • The pension must be wholly received in Malta and such pension needs to constitute at least 75% of the individual’s chargeable income;
  • The individual is not in an employment relationship. However, he may still hold a non-executive post on the board of a company resident in Malta and partake in activities related to any institution, trust or foundation of a public character and any other similar organisation or body of persons, which are also of a public character, that is engaged in philanthropic, educational or research and development work in Malta;
  • The individual owns or rents an immovable property which the individual occupies as his principal place of residence worldwide. The values of the property need to be as follows:
  1. If owned: Malta € 275,000 Gozo: € 220,000;
  2. If rented: Malta € 9,600 p.a. Gozo: € 8,750 p.a..
  • The individual is not a beneficiary in terms of any of other special tax programme;
  • Is in possession of a valid travel document as well as medical insurance which covers himself and his dependents; and
  • He is a fit and proper person.

Minimum Tax requirements

Beneficiaries of these special tax rates will need to pay a minimum tax of €7,500 annually and a further €500 in respect of every dependent and every household staff.

Tax implications

Foreign sourced income which is remitted to Malta will be taxed at a flat rate of 15%. Any other income, including income arising in Malta, will be subject to tax at the rate of 35%.

Annual compliance

  • Regular payments through the provisional tax system;
  • Filing an annual income tax return;
  • Making an annual declaration that the individual has not resided in a jurisdiction other than Malta for a period exceeding 183 days.

Household staff

Household staff may reside in the qualifying property with the beneficiary. The individual providing the service is required to provide such service in whole or in part within the qualifying property and would have been in an employment relationship with the beneficiary for at least two years prior to the application date. It is important that the rendering of such services by the household staff is regulated by a contract of service. Such staff will be subject to the normal progressive rates of tax.

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