The Malta Retirement Programme Rules, 2012 applies for special tax status
Malta Retirement Plan or the Malta Retirement Programme has always attracted a large ex-pat population, thanks to its abundance of warm sunshine all year round and its “home from home” atmosphere.
The English language is spoken widely and there is a good healthcare system and the standard of medical facilities available is comparable to the rest of Western Europe.
But it’s not just a comfortable and pleasant way of life, Malta also has a reputable and highly regarded financial framework which is regulated and internationally recognised. Here’s a closer look at the Malta Retirement Plan and the other benefits to living in the country.
Using Malta for a QROPS
Malta is very quickly becoming one of the highest regarded centres for financial excellence in Europe, which makes it ideally placed to administer a retirement plan for those arriving from overseas.
Malta has been added to the list of countries which have been approved by HMRC to meet the criteria required for the UK Qualifying Recognised Overseas Pension Scheme.
This means that it’s possible to transfer all private pension schemes into a QROPS held in Malta, rather than continue to have the monies managed separately back in the UK. Different schemes can be merged together under one QROPS, making it far easier to organise your pension income.
The benefits of a Malta QROPS
This kind of Malta Retirement Plan is particularly advantageous for a number of different reasons, not just because it’s convenient and easier to manage.
Moving your money into a QROPS Malta Retirement Programme will provide you with far more flexibility and also control over the way in which, and where, your money is invested.
When a QROPS is used, the funds fall under the jurisdiction of the new country; this can be very advantageous when the country in question is Malta. This is because Malta has an extremely robust financial framework and all retirement schemes have to register with the country’s regulator, the MFSA.
Malta is one of the countries named by the OECD as being on the “white list”, a preferential group which only includes nations who adhere to global standards.
A fact that may be particularly comforting for ex-UK nationals is that the Maltese system is based on the same structure as the UK, with every single company who wants to administer a QROPS required to register under the Special Funds (Regulation) Act.
Malta’s QROPS schemes are particularly acceptable to HMRC, with little red tape to negotiate. This is because the system was designed in tandem with HMRC from the start, rather than being put in place and attempting to secure HMRC approval at a later date. This makes is far less arduous for the individual to get acceptance for the transfer of their funds.
Once moved to a QROPS, the pension pot is not subject to Inheritance Tax and in many cases, can also offer other tax efficiencies too, such as a 30% lump sum. The income and drawdown received from a QROPS can also offer better tax efficiencies, with further lump sums possible providing there are other means of financial support which can be evidenced.
Malta Retirement Plan
Quite apart from the manifest financial benefits, Malta is a country which offers pleasant surroundings for any retirement.
The climate is warm all year round, even during the winter which can ease health problems such as arthritis and muscular aches.
The country has a huge ex-pat population which can give it a distinctly British flavour, certainly in some communities, which can be a big benefit when moving to a new place. Although Maltese is the national language, the majority of people speak English and some speak Italian too, so it’s very easy to converse without having to learn a new tongue.
Doing business in Malta is thriving too, with incoming investment blooming, thanks to its rapidly expanding reputation for financial excellence. All the reasons which make it a profitable place to transfer your pension to also attract investors, which in turn is making the country increasingly prosperous.
The Maltese archipelago can offer many benefits for Malta retirement programme, with a warm climate, friendly people and a reputable financial framework. The retirement plans in the country are regulated and flexible, so you can be certain that your money will be in excellent hands.