Malta Retirement Programme

ELIGIBILITY REQUIREMENTS

To qualify for the Malta Retirement Programme, applicants must meet specific criteria, including property investment, pension remittance, and residency requirements:

• Property Requirement: Applicants must own or rent a qualifying property in Malta.
  • Purchase: Minimum property value of €220,000 in Gozo or South Malta, or €275,000 in other areas.
  • Rental: Minimum annual rent of €8,750 in Gozo or South Malta, or €9,600 elsewhere in Malta.
• Pension Requirement: Applicants must receive a pension that constitutes at least 75% of their total income, which must be remitted to Malta.
• Residency Requirement: Applicants must reside in Malta for at least 90 days per year, averaged over five years, and cannot reside in another country for more than 183 days in a calendar year.
• Non-Domiciled Status: Applicants must not be domiciled or intend to establish domicile in Malta within five years of applying.
• Travel & Health Insurance: Valid travel documentation and health insurance covering the applicant and dependents throughout the EU are required.

Note: Residency under this programme does not qualify for a long-term residence visa.

TAX TREATMENT

Beneficiaries of the Malta Retirement Programme enjoy a favourable tax regime:

• Foreign Income: A flat tax rate of 15% applies to foreign income remitted to Malta. Non-remitted foreign income is exempt from Maltese tax.
• Minimum Annual Tax: €7,500 for the beneficiary, plus €500 per dependent or special carer.
• Malta-Sourced Income: Local income is taxed at a flat rate of 35%.
• Double Taxation Relief: Beneficiaries may access Malta’s extensive double taxation agreements to prevent double taxation.

DEPENDANT PERSONS

The Malta Retirement Programme permits beneficiaries to include dependents, provided they share the principal residence. Eligible dependents include:

• Spouse or Partner: Spouses or stable, long-term partners.
• Minor Children: Minor children in the care and custody of the applicant, spouse, or partner.
• Other Dependents: Includes adopted children in the care and custody of the beneficiary, spouse, or partner.

DOUBLE TAXATION RELIEF

Malta’s extensive Double Taxation Relief (DTR) framework safeguards residents under the Malta Retirement Programme from paying tax on the same income in multiple countries. With a wide network of treaties covering over 70 countries, the DTR ensures that foreign pensions, dividends, and other income are either taxed in the source country or Malta, not both.

For countries without a formal treaty, Unilateral Relief allows for a tax credit in Malta on foreign taxes paid, reducing the chance of double taxation. Malta also has no inheritance tax, though certain duties apply to the transfer of Maltese assets, such as a 5% rate on real estate and a 2% rate on shares in Maltese companies. Exemptions may apply for international business assets.

Overall, the DTR framework enables retirees to benefit fully from Malta’s favourable tax environment without duplicative taxation, preserving the value of foreign income and retirement funds.

APPLICATION FEES

A non-refundable administrative fee of €6,000 is applicable except where the qualifying owned property is situated in the South of Malta, in which case the administrative fee is reduced to €5,500.

YOUR TRUSTED PARTNER IN MALTA

With over 55 years of experience since 1969, Frank Salt Real Estate has built a trusted reputation for guiding clients through Malta’s residence and citizenship programs to find the perfect fit for their needs. We offer Malta’s largest selection of properties for sale and rent, and our team is highly experienced in assisting foreign clients looking to relocate or invest. From tailored residency guidance to exceptional real estate options, Frank Salt Real Estate is your reliable partner for a seamless transition to life in Malta.