The Malta Retirement Programme is aimed at retirees or adults nearing retirement age, considering taking up residence overseas.
It is ideal for retirees, or persons reaching retirement age, who are looking at taking up residence in a country that offers them the best in terms of climate, lifestyle, health services and peace of mind, whilst also providing attractive tax benefits.
Beneficiaries would also be able to 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 or 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.
Applicants must be in receipt of a pension as supported by documentary evidence, all of which is received in Malta and which constitutes at least 75% of the beneficiary’s chargeable income.
Applicant must reside in Malta for not less than 90 days a year, averaged over a 5-year period. He/she may not stay in any one particular foreign jurisdiction for more than 183 days in a calendar year.
Applicant must not be domiciled in Malta and must not intend to establish his domicile in Malta within 5 years from the date of the application for the special tax status
Applicant must have a valid travel document and must hold insurance covering both applicant and his dependents, in respect of all risks across the whole of the EU.
The Programme grants its beneficiaries a tax rate of 15% on pension and foreign income remitted from overseas (subject to a minimum tax payment of €7500 per annum and an additional €500 per dependent) and received in Malta by both the beneficiary and his/her dependents, with the possibility to also claim double taxation relief. The pension has to be directly received all in Malta and constitutes at least 75% of the chargeable income.
Any other income not covered by the programme, including income arising in Malta, will be subject to tax at a flat rate of 35%.
Malta has a very interesting tax regime for digital nomads, where foreign income is not taxed if it’s not remitted to the country itself. They will only be taxed locally on income earned for work done for Maltese companies, if any.
A non-refundable administrative fee of €2,500 is chargeable for each application.