United Nations Pensions Programme Rules, 2015 (UNPP)

United Nations Pensions Programme Rules | Papilio Services Limited

United Nations Pensions Programme Rules

The United Nations Pensions Programme, Malta was introduced through the Maltese Parliament on June 5, 2015 through Legal Notice 184 of 2015. The United Nations Pensions Programme in Malta is a new edition to a number of special Malta residence programmes and is available to all non Maltese beneficiaries in receipt of a pension from the United Nations joint staff pension fund.

What are the conditions of the United Nations Pensions Programme in Malta?

In order to qualify for the United Nations Pensions Programme in Malta, a number of conditions must be satisfied by the applicant and these include:

  • The applicant of the UNPP must be in receipt of United Nations pension income or widow/widower’s benefit, supported by documentary evidence, of which at least 40% is received in Malta;
  • The applicant of the UNPP must not be an employment relationship. (but can hold non-executive posts on the board of a Malta resident company);
  • The applicant of the UNPP must not benefit from any other Malta residence or employment programme;
  • The applicant of the UNPP must be in receipt of stable and regular resources which are sufficient to maintain himself/herself and his/her dependants without recourse to the social assistance system in Malta;
  • The applicant of the UNPP must hold a valid travel document;
  • The applicant of the UNPP must be in possession of sickness insurance in respect of all risks across the whole European Union normally covered for Maltese nationals for himself/herself and his/her dependents;
  • The applicant of the UNPP must be able to communicate in one of the official languages of Malta;
  • The applicant of the UNPP must be a fit and proper person (a due diligence exercise is carried out by the Maltese Inland Revenue Department prior to the granting of the special tax status).

Property Requirement for the United Nations Pensions Programme in Malta

In addition to the above, the applicant of the United Nations Pensions in Malta must hold a qualifying property for a minimum of 5 years. The qualifying property if located in Gozo or the south of Malta must be purchased for a minimum consideration of €220,000. Should the property purchased be situated anywhere else in Malta the minimum consideration for that property should be at least €275,000.

The United Nations Pensions Programme also allows for the qualifying property to be leased for a minimum of €8,750 per annum if the property is situated in Gozo or the south of Malta or €9,900 per annum if the property is situated in the rest of Malta.

In all cases the property should be occupied by the applicant of the United Nations Pensions Programme as his/her primary residence and must not be shared with other persons except for his/her dependents, including spouse, parents, children and household staff.

What are the tax considerations of the United Nations Pensions Programme?

On successful completion of the United Nations Pensions Programme application and conditions the applicant would qualify for a special tax status (and consequently qualify for an exemption/15% flat tax rate). It should be noted, that the minimum tax payable, with regard to any other income remitted to Malta (after deduction of double taxation relief), in respect of any year shall be €10,000 (and an additional €5,000 in respect of a spouse in receipt of a United Nations pension).

A person qualifying under the UNPP rules must not stay in any other jurisdiction for more than 183 days in any calendar year.

How much does the United Nations Pensions Programme Cost?

Applications for the United Nations Pensions Programme in Malta may only be submitted to the Commissioner of Inland Revenue through the services of an authorised registered mandatary of which Papilio Services Limited is. A non-refundable application fee of €4,000 (€3,500 if the applicant is settling in Gozo or the south of Malta) is payable to the Commissioner of Inland Revenue on application.

Trusted and Authorised Malta Tax Advisors of the United Nations Pensions Programme

An applicant for the United Nations Pensions Programme in Malta must authorise an authorised registered mandatory to act on his behalf in respect of all applications, correspondence, submissions, filings, declarations and notifications contemplated under the UNPP rules.

Papilio Services Limited are authorised registered mandataries and fully licenced to handle and submit applications for the United Nations Pensions Programme.