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The Malta Retirement Programme (MRP)

The Malta Retirement Programme rules provides a specifically designed programme for EU, EEA and Swiss national pensioners to relocate to Malta.

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The Malta Retirement Programme (MRP)

The Malta Retirement Programme rules provides a specifically designed programme for EU, EEA and Swiss national pensioners to relocate to Malta and enjoy special tax status. Applicants are subject to several criteria and upon successful application have a number of tax benefits available to them.

 

Beneficial Tax Treatment

The special tax status assigned to individuals under the Malta Retirement Programme consist of a flat rate of 15% on foreign income but can claim double tax relief. The income tax is chargeable on amounts arising in a foreign country but is received in Malta. Income arising in Malta is taxed at 35%.

 

The Retirement Programme Eligibility

  • Hold a qualifying property occupied by the applicant and family members and/or carers;
  • When purchasing a property, the minimum value must be €275,000 in Malta or €250,000 in Gozo;
  • In case a property has been purchased before end of 2010, the value of the property must not be lower at the time of application. This can be verified through an architects evaluation;
  • When renting a property, the minimum annual rent must be no less than €9,600 in Malta and €8,750 annually in Gozo;
  • Receive the entire pension in Malta where the pension constitutes at minimum 75% of the total chargeable income of the applicant;
  • Applicant cannot be a Maltese or third country national;
  • Is not or does not intend to establish domicile in Malta within 5 years of the application date;
  • Not able to participate in any other special tax programme or be employed;
  • Be in possession of a health insurance valid across the European Union and covering the applicant and his family/dependents;
  • Possess valid travel documents; and
  • Be a fit and proper person.

The MRP Highlights

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Flat Rate of 15% Income Tax

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35% Tax on Income Arising In Malta

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Application Fee of €2,500

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Acquire and Retain Qualifying Property

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Must Remain in Malta for 90 days

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Minimum Tax Of €7,500

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The minimum Tax Payable in Malta

A minimum tax of €7,500 must be payable in addition to €500 per dependent and carer.

 

The MRP Annual Obligations

To maintain the special tax status under the Malta Retirement Programme, the holder must:

  • Retain the qualifying property;
  • Retain the health insurance cover;
  • Stay in Malte for more than 90 days on average over a period of 5 years;
  • Not stay in any other country for more than 183 days; and
  • Adhere to all reporting obligations and notifications required.

The Malta Retirement Programme Application Process

Any Maltese Authorised Registered Mandatory can file the application on behalf of applicants wanting to benefit from the retirement programme.

The application is subject to a fee of €2,500.

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