Retiring In Malta

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Retiring In Malta

Malta’s climate and track record for safety make it a favourite for retirees

Malta has long been a favourite destination for people in their golden years. The country’s culture lends itself to a relaxed yet active lifestyle that leaves many feeling as though they have rolled back the years. Malta’s small size helps – wherever you choose to reside, you are never far from the capital, from the shops, services and amenities you need, and of course, from the world-class healthcare services available.

The Malta Retirement Programme (MRP) – open to persons who are not in employment and who receive periodical pension income – offers applicants from around the world the opportunity to carve out their slice of paradise, shared with many others of similar age and experience, creating wonderful opportunities for new connections.

Beneficiaries of the MRP need not worry about leaving trusted staff behind. The scheme allows for special carers, who have been providing substantial and regular care to the beneficiary or their dependants, to enter the country and even live with them in the property of their choice.

As the adage goes, retired does not mean inactive. Beneficiaries may engage in a variety of activities, including non-executive roles on company boards or involvement in the many trusts, foundations and similar organisations that make life in Malta so meaningful and rewarding.

The scheme requires a physical presence, with beneficiaries needing to reside in Malta for a minimum of 90 days in each calendar year, although this can be averaged out over a five-year period. Beneficiaries must also not reside in any other jurisdiction for over 183 days in any calendar year.

MRP Tax Implications

Residence holders under the MRP are granted special tax status, with pension income remitted to Malta taxed at an attractive flat rate of 15 per cent. Income arising in Malta is taxed at a flat rate of 35 per cent.

MRP Eligibility Criteria

Capital

No particular capital requirements.

Minimum tax

MRP beneficiaries must submit an annual tax return, showing payment of at least €7,500 in taxes for the main beneficiary and another €500 per annum for every dependant.

Income

At least 75 per cent of the individual’s income must derive from a pension, with a maximum 25 per cent from other sources. Proof of sufficient financial resources to maintain themselves and their dependants without recourse to social assistance must be presented.

Income

Applicants must prove sufficient financial resources by providing a bank statement.

Background check

Applicants must have a clean criminal record and must not pose any threat to national security, public policy, public health, or public interest.

MRP Application

Application and duration

An application must be submitted through an Authorised Registered Mandatory.

Property

Upon approval, applicants must purchase or rent a property in Malta as their principal residence. Purchased property must have a minimum value of €275,000 (€220,000 if located in Gozo or the South of Malta). A rental agreement must meanwhile be for a minimum of €9,600 per year (€8,750 if situated in Gozo or the South of Malta).

Application fee

€2,500.

Health insurance

Applicants must have global health insurance and provide evidence that they can maintain it indefinitely.

Applicants must also be in possession of a valid travel document, and, when travelling across the Schengen Area, non-EU nationals must take out travel insurance.

More information about the Malta Retirement Programme can be found on the website of Malta’s income tax department, the Commissioner for Revenue (cfr.gov.mt), which is the entity responsible for the scheme.