Malta Retirement Programme

Malta Retirement
Programme

The Malta Retirement Programme (MRP) is designed to attract nationals of the EU, EEA and Switzerland, in addition to non-EU nationals who are not currently in an employment agreement, and who receive a pension as their regular source of income.

An individual may benefit under the programme if they can provide documentary evidence of a pension, all of which is received in Malta, and constitutes at least 75% of their chargeable income.

Beneficiaries may also have household staff providing a service in their qualifying property, if all the required procedures are satisfied.

Pension includes:

  • Periodic payments paid to a former employee in respect of past employment
  • Remunerations paid as lifetime or temporary annuities
  • Regular income from an occupational retirement scheme, personal overseas retirement plan and insurance policies.

Who can apply?

An individual who also meets the following criteria is eligible to apply for the MRP:

  • They are not a Maltese national
  • Owns or rents a qualifying owned property, or qualifying rented property which the individual occupies as his principal place of residence worldwide:
    • Owned property situated in Malta, other than in the south of Malta, and valued at €275,000, or owned property situated in Gozo, or in the south of Malta valued at €220,000
    • Rented property situated in Malta, other than in the south of Malta, at €9,600 per annum, or rented property situated in Gozo, or in the south of Malta at €8,750 per annum.
      The lease needs to be taken out for a minimum of twelve months and evidenced by a certified lease agreement.
  • An individual must also not be a person who benefits under the following:
    • Global Residence Programme Rules
    • High Net Worth Individuals — EU / EEA / Swiss Nationals Rules
    • High Net Worth Individuals RulesNon — EU / EEA / Swiss Nationals Rules
    • Highly Qualified Persons Rules
    • Qualifying Employment in Aviation (Personal Tax) Rules
    • Qualifying Employment in Innovation and Creativity (Personal Tax) Rules
    • Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules
    • Residence Programme Rules
    • Residents Scheme Regulations or the United Nations Pensions Rules.

However, an individual may renounce the right to the benefits under any of these rules prior to applying for the MRP.

The following persons may be included in the application:

  • The spouse of the main applicant of similar status
  • Unmarried minor children (including adopted children) of the applicant or spouse, and children that are not minors but are fully dependent on the applicant, including adult children who qualify as a person with a disability.

Administrative Fee

A non-refundable administrative fee of €2,500 is payable upon application to the Commissioner for Revenue.

Tax Benefits

Individuals will benefit from a flat tax rate of 15% on income arising outside Malta, which is received in Malta, with a minimum tax payment of €7,500 for the main applicant and €500 for each dependent.

Any other income arising in Malta will be taxed at 35%. Capital gains arising outside of Malta are not subject to tax in Malta, even if remitted to Malta.

The Procedure

Four steps

Step one

Application

Once the application, all required documentation and payment of the administrative fee is submitted to the Commissioner for Revenue, it is checked for completeness and vetted accordingly.

Step two

Acknowledgement letter

An acknowledgement letter is sent to the Authorised Registered Mandatory (ARM), stating if any necessary documents have not been submitted, or do not satisfy the requirements to proceed with the application.

Step three

Property

An applicant may submit the certified final property deed or lease agreement at a later stage. Special tax status will not, however, be confirmed until these documents are submitted

Step four

 

Letter of Intent

A Letter of Intent is issued and sent to the ARM. This Letter will be accompanied by a Notice of Primary Residence, which must be completed and signed by the applicant, and the original submitted to the Commissioner for Revenue.

The Letter of Intent is valid for twelve months from the date of issue. During this period, the applicant must submit the following documents for the Letter of Confirmation to be issued:

  • Completed Notice of Primary Residence duly signed by the applicant
    Certified true copy of the lease agreement or final deed, and
  • A copy of the receipt confirming that the minimum tax was paid to the Commissioner for Revenue.

It is important to provide full and accurate information. In cases of doubt, providing more detail, rather than less, is advised.

Any omissions or incorrect information may delay processing of the application.