Retirement Programme

With its convenient location at the heart of the Mediterranean enjoying a warm climate throughout the year, a rich and colourful history and culture, coupled with friendly people and an advantageous tax regime, Malta remains an excellent place to retire.

In turn, an EU, EEA or Swiss national seeking to retire in Malta may benefit under the Malta Retirement Program.

A prospective beneficiary under the Retirement Programme would be required to:

• make an annual minimum Malta income tax payment of at least € 7,500 plus an additional € 500 per dependant, after taking into account any double tax relief claimed;
• derive overseas pension income which is received in Malta in full and which is to represent at least 75% of the chargeable income in Malta;
• own immovable residential property in Malta acquired against consideration of at least € 275,000 or of € 250,000 if the property is in Gozo, or, alternatively, leases property in Malta against annual rental payments of at least € 9,600 or of at least € 8,750 if the property is in Gozo.

A beneficiary under this programme would, as a result, be subject to tax in Malta as follows:

• chargeable income arising outside Malta and which is received in Malta would be taxable in Malta at a flat rate of 15%;
• chargeable income arising in Malta and capital gains realised in Malta would be taxable in Malta at the higher flat rate of 35%.

A beneficiary under this programme would, as a result, be subject to tax in Malta as follows:

• income arising outside Malta which is not received in Malta; or
• capital gains realised outside Malta, even if such gains are received in Malta, in whole or in part.

Some other important features of Malta’s tax system that should be considered are that:

• Malta does not levy wealth, capital or estate taxes.
• No Malta tax is generally levied on capital gains realised pursuant to a disposal of shares in a Malta company.