Malta Retirement Programme (MRP) - Retire In Malta

Programme Benefits

The Malta Retirement Programme offers special tax status to all nationals. The programme gives a 15% flat tax rate on any foreign pension income received in Malta. In 2020, this tax residence programme was opened to Non-EU nationals as well as EU citizens.

As Authorised Mandatories (ARM00905), we can help our clients obtain this special tax status. Contact us and we will arrange a residency planning consultation to understand your situation and start the application process for the Malta Retirement Programme.

Why Retire to Malta?

  • Fantastic climate with 300 days of sunshine per year
  • Stable political, social, and economic environment.
  • Located strategically with prime international flight and sea connections.
  • Rich with culture and history that hides around every corner.
  • Malta is home to world-renowned healthcare facilities available to all residents in Malta.
  • English speaking country.
  • Low crime rate.
  • An appealing tax structure to ensure you get the most out of your pension income.

    Requirements for the Malta Retirement Programme?

    To be eligible for the Retirement Programme, and subsequently, it’s attractive tax status, you must:

  • Receive pension income in Malta and this must constitute at least 75% of your taxable income.
  • Not be in an employed in Malta. However, may hold non-executive posts on the board of a Maltese company and partake in certain activities (e.g., philanthropic activities).
  • Hold a qualified property by either renting a property for a minimum of €9,600 per annum or purchase a residential property for at least €275,000.
  • Not be a person who benefits under any of Malta’s other residency programmes. (e.g., Global Residence Programme or the Malta Residence Programme)
  • Receive stable and regular resources which are sufficient to maintain yourself and any dependents without resorting to the social assistance system in Malta.
  • Have a valid travel document.
  • Be covered by an EU Health Insurance Policy.
  • Not be domiciled in Malta and not intend to establish your domicile in Malta within 5 years from the application.
  • Be a fit and proper person with no criminal record.

  • What is the Application Process to Apply for the Malta Retirement Programme?

    Step 1: Applicants must complete an application form and questionnaire ready to submit to the Maltese Government. This would be completed with guidance from the Authorised Mandatory. Moreover, there will be additional KYC documents required to be given to the Authorised Mandatory.

    Step 2: After successfully completing the paperwork, the Authorised Mandatory will submit your documents to the authorities along with your non-refundable application fee of €2,500.

    Step 3: The Maltese Government will check your documentation and conduct relevant interviews with the main applicant.

    Step 4: If successful, the main applicant will receive a letter of approval in principle. This letter is valid for 12 months. To benefit from the Malta Retirement programme, you must provide evidence that:

  • The minimum tax of €7,500 has been paid.
  • The accommodation requirements have been met.
  • The applicant and dependents have health insurance coverage.

    Step 5: On the successful completion of the application process, the applicant would qualify for Retirement programme and subsequently benefit from 15% tax rate.

    Tax Provisions for Retirement in Malta

    If your application is accepted, Maltese authorities will tax 15% on any income originating outside of Malta, which is received in Malta. However, any income issued in Malta is subject to tax at the standard rate. If you are planning on retiring in Malta, you are required to pay a minimum tax of €7,500 per annum and an additional minimum tax of €500 per dependent and carer.

  • Frequently Asked Questions about the Malta Retirement Programme

    How much money do I need to retire in Malta?

    The amount of money you need to retire in Malta depends on various factors, including your desired lifestyle, expected expenses, and personal financial goals. It's recommended to have a retirement fund that can cover your living costs, healthcare expenses, and any additional leisure activities. To get a rough estimate, you can consider the average cost of living in Malta. According to recent data, a comfortable retirement in Malta typically requires an annual income between €20,000 and €30,000 for a single person, depending on your lifestyle choices. For couples, this amount could range between €30,000 and €40,000 per year. Keep in mind that these figures are estimates, and your individual circumstances may vary. It's always wise to consult with a financial advisor or retirement planner who can help you assess your specific needs and create a personalized retirement plan.

    Is Malta a good retirement country?

    Malta is often considered a good retirement country for several reasons. First and foremost, it enjoys a mild Mediterranean climate with over 300 days of sunshine annually, making it an attractive destination for retirees seeking a pleasant and comfortable environment. Additionally, Malta offers a high standard of living, excellent healthcare facilities, and a low crime rate, which are all factors that contribute to its appeal as a retirement destination. The country also boasts a rich history, stunning architecture, and numerous cultural events, providing retirees with ample opportunities for leisure and exploration. Furthermore, English is widely spoken in Malta, making it easier for foreign retirees to adapt and communicate effectively.

    What are the taxes for retirees in Malta?

    Under the Malta Retirement Programme, income originating outside of the country and received within Malta is subject to a 15% tax by the authorities. On the other hand, income generated within Malta is taxed at the standard rate. If you are considering retirement in Malta, there are minimum tax obligations to be aware of. These include a yearly minimum tax payment of €7,500, as well as an additional minimum tax of €500 per dependent.

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    Are you considering retiring to Malta?

    We are accredited agents through Identity Malta to offer this tax residency programme. Contact our team and we will arrange a residence planning consultation to discuss the conditions of the Malta retirement programme in more detail as well as answer any questions you may have.

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