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Retiring in Malta

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When retirement approaches, many people opt to spend their post-work days in a better climate with different opportunities for daily activities. Malta is a very popular retirement destination for its climate, cost of living, lifestyle, and the ability to fit in with the local culture.

If you wish to settle in a stable and peaceful European Union country, Malta can be the ideal destination for you. An English-speaking nation in the Mediterranean, Malta brings together many positive attributes for your retirement years.

Be sure to enquire about related conditions and procedures beforehand.

The Malta Retirement Program (MRP)

The Malta Retirement Program (MRP) has been set up by Maltese authorities so as to attract EU, EEA and Swiss nationals, allowing them to live in Malta thanks to their income from foreign sources. According to this program, they are not allowed to work in the archipelago, but they can still enjoy its desirable lifestyle.

Applying for the MRP is simple and will grant the successful applicant a 15% flat tax rate only on Maltese derived income or on overseas income that is remitted to Malta. MRP participants are not taxed on worldwide income. Income derived in Malta will be taxed at a rate of 35%, and that income cannot exceed 25% of your total annual income.

To qualify, an applicant must be an EU, EEA, or Swiss national and must live in Malta for a minimum of 90 days per year averaged over a 5-year period. Additionally, the applicant cannot live in any other country for more than 183 days in a year.

Applicants must own or rent property in Malta at a minimum cost as follows:

  • Owning property in Malta: €275,000
  • Owning property in Gozo: €250,000
  • Renting property in Malta: €9,600 annually
  • Renting property in Gozo: €8,750 annually

Additionally, an applicant must receive a pension, with documented evidence. The pension must constitute at least 75% of the person’s chargeable income for any tax year.

The applicant must submit an up-to-date police conduct certificate as evidence of being a “fit and proper person."

The applicant must hold sickness insurance applicable in Malta. And, finally, the applicant cannot benefit from any other programmes.

The minimum tax payable per year is €7,500, plus €500 for each dependent.

 Important:

The Malta Retirement Programme residence permit does not allow you to work or set up business in Malta.

Residence in Malta

If you do not qualify for the Malta Retirement Programme, you could still qualify for residence in Malta during your retirement.

An Ordinary Residence is an option for EU/EEA Nationals coming to Malta. The tax you will pay under Ordinary Residence is worked out by taking from 0 - 35% of your income, minus a tax-credit, depending on how much you earn and your marital status.

Permanent Residence is open to all nationalities. Non-EU/EEA Nationals must apply for Permanent Residence. You can also apply for this scheme if you are from the EU, but consult a lawyer first to see which type of residency is best suited to you.

You will need to renew you ordinary residence permit every five years, while permanent residence permits are renewable every year.

 Useful links:

Citizenship and Expatriate Affairs Department
Inland Revenue
Malta Retirement Program (MRP)

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
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