Relocating definitively to Malta - Tax on pension?

MaltaCommando wrote:

Hello, my father is thinking of relocating permanently to Malta, and as such, move his retirement pension to a Maltese bank account.

He receives part of his pension from UK (around 500 € monthly) and the other from Spain (around 800 €). We have read that private foreign individuals residing in Malta would be paying 15 % of tax for their retirement pensions that are paid into a Maltese bank account.

Is this right? or is it only for higher pensions? are all pensions taxed here in Malta regardless of their amount?

You are liable for tax on all monies remitted to Malta other than from capital and on all monies earned in Malta. Tax is paid on monies over and above the tax allowance which is, from memory, around €9500 each. There is a 'Dual Taxation' system so that tax already paid on any money transferred to Malta can be set against tax in this country.
We have our pensions paid in to our UK accounts and then transfer whatever we need to Malta so we can keep the tax liability to a minimum and transfer funds when rates are at their best, we have been told by HMRC that we are no longer in the UK tax system. This way we can pay for some things from our UK accounts, such as flights and hotels, and keep this money out of the Maltese system. (Not sure whether this is legit or not so do not take this as formal tax advice! )

Ray

Ray that's some interesting info on pension I've got some pension due in UK/US and have gotta say having just officially retired at 65 (but still havent taken my US pension) have found this whole area a minefield. I've just arrived in St Paul's for a week intended to scope out things and check out appartments to rent long term which is not so straightforward as I thought.

I'm particularly interested in HMRC saying alls ok as I'm still somewhat in the dark about this as when I was in the US I paid US taxes on my UK pension under the double taxation agreement but will now have to decide whether to send my US pension to Malta or UK. Apart from the fact this is my first visit to Malta and am in the process of choosing a nice area (with lots of advice..all different) including whether it should be Malta or Gozo.

The forum is very good for info including whether to drive my car here or leave it behind and fly...would I be right in saying the atmosphere towards expats is changing here and that it's all about money?
I guess that's the case everywhere certainly in the US.

Come and have a look at Gozo before deciding where to live, a lot quieter than Malta, friendly
locals and rental cheaper, the only time its noisy here is when the Maltese visit.

Thanks GozoMo  ive booked a bus tour of Gozo on Monday and if I like it will bring my rental car over on Tuesday/Wednesday for a proper look. Any areas you can suggest that I should pay attention to for apartments appreciated. The car hire guy suggested Marsalforn and Xlendi ?

Chalks1 wrote:

Thanks GozoMo  ive booked a bus tour of Gozo on Monday and if I like it will bring my rental car over on Tuesday/Wednesday for a proper look. Any areas you can suggest that I should pay attention to for apartments appreciated. The car hire guy suggested Marsalforn and Xlendi ?

Anywhere but Marsalforn and Xlendi, too touristy and very busy as they both have a lot of
restaurants and even this time of year you find it hard to park a car at the weekend we
love Gharb as there are restaurants but quieter and some lovely walks.

Thanks, I'll check out Gharb and San Lawrenz? But Gozo certainly appeals more to me. You seem to enjoy the lifestyle. One last question if I may but I'll pm you

John C

I just got back from my research visit of Gozo and I absolutely loved it. Definitely go and have a look, it's beautiful and everyone I spoke to were helpful and friendly. Can't wait to move there next year