Retirement Programme Rules In Malta

By virtue of the inclusion of the recent Subsidiary Legislation 123.134 to the Maltese Income Tax Act, a special tax status has been issued for retirees from EU, EEA countries and Switzerland when remitting their pension into Malta. This means that a fixed tax rate of 15% will be due on the pension remitted, and the minimum tax payable shall be of €7,500 for the beneficiary and €500 for each of his/ her dependants (if any).

The Malta Retirement Programme Rules 2012 (as they have been entitled) outline the salient conditions and features for one to benefit from the rules as follows:

  • The beneficiary must be an EU/ EEA/ Swiss national who is not in employment;
  • The beneficiary may hold a non-executive post on the board of a company resident in Malta or partake in activities related to any institution, trust or foundation of a public character and of any other similar organisation or body of persons, also of a public character, which is engaged in philanthropic, educational, or research and development work in Malta or Gozo;
  • The beneficiary must purchase or rent property in Malta or Gozo. The rules establish minimum values of €275,000 (Malta), or €250,000 (Gozo) for purchased properties whilst for rented properties these minimum values are set at €9,600 per annum (Malta), or €8,750 (Gozo);
  • The pension which is received in Malta, must constitute at least 75% of the beneficiary’s chargeable income. Therefore, the beneficiary may only generate up to 25% of his/her total chargeable income from any non-executive posts;
  • The beneficiary must have health insurance in respect of all risks across the all the EU (also covering her/ her dependants, if any);
  • The beneficiary must not be domiciled in Malta and should not have any intention of so establishing his/her domicile in Malta within a period of 5 years;
  • The beneficiary must reside in Malta for a minimum of 90 days in each calendar year (the mentioned 90 days are averaged over any 5-year period); and
  • The beneficiary must not reside in any other jurisdiction for more than 183 days in any calendar year during which the retirement programme is availed of.

The application for the Malta Retirement Programme Rules must be completed and submitted by an Authorised Registered Mandatory. We will be please to assist you in this regard.

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