Find, in this article, all you need to know about the steps to follow for a smooth and successful retirement in Malta.
When comes the time to retire, many people prefer to spend the rest of their lives abroad in a different culture and environment. So if you wish to settle in a stable and peaceful European Union country, Malta can be the ideal destination for you. In fact, the country has been attracting foreign retirees since many years for its rich historical and cultural heritage as well as its serene environment and interesting lifestyle. Despite being the world's smallest archipelago, Malta can provide you with what you have been looking for. But make sure to inquire on relating conditions and procedures beforehand.
To be allowed to live in Malta, you have to fill in specific conditions. First of all, you must be able to prove that your yearly income will exceed 24,000 euros or have a net capital exceeding 350,000 euros.
To be eligible to a resident permit in Malta, you also have to commit to rent or buy a property in the country. You have to fulfill this commitment within a year following the issue of your resident permit. In case you prefer to rent accommodation, you will have to spend at least 4,200 euros a year. The purchase of a property in Malta is also regulated by a minimum legal price.
As regards taxation, you must prove that you will be able to pay 14,000 a year, as well as additional 2,400 euros for each family member who will be depending on your resident permit.
The resident permit does not allow you to work or set up any type of business in the archipelago.
Since a few years, nationals of the European Union and of the European Economic Area (including Iceland, Liechtenstein, Norway and Switzerland), are eligible to a special tax program intended for foreigners retirees.
You will have to pay a 15% tax on all income of foreign sources subject to the payment of a minimum of 7,500 euros per year and 500 euros for each depending. On the other hand, all revenue received from local sources is taxable at a rate of 35%.
Non-Maltese nationals wishing to retire in Malta have to purchase a real estate property which has to become their main residence. They must also invest a minimum of 275,000 euros in the property if it is located on the main island or at least 250,000 euros if it is found in Gozo.
If you prefer to rent, you will have to spend at least 9,600 euros per year in terms of rent on the main island or at least 8,750 euros per year in Gozo. The lease document must be valid for at least 12 months.
All income received, whether from pension funds or other sources, have to account for 75% of your total taxable income once you have settled in Malta.
Finally, you must have a valid passport, subscribe to a health insurance which is valid throughout the European Union, have a clean criminal record. Once you are in Malta, you are required to register with the Citizenship and Expatriate Affairs Department by producing these documents so as to be allowed to live in the country legally.
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 some freedom.
Hence, foreign nationals can be appointed by a local company's board of administration without occupying an executive post. They are also allowed to take part in activities organized by Maltese organizations in terms of philanthropy, education, research and development. You can have more information on this program from the Inland Revenue Department.
If you feel you can fill in these requirements, you are then ready to set out for a wonderful expat experience in this rich and prosperous country. All the best!