Malta

Retirement Programme

Introduced in 2013 under the Immigration Act, the Malta Retirement Program allows EU/EEA/Switzerland nationals and their dependents (spouse, children under 26 and parents) who intend to retire in Malta. The permit has 5-year validity, renewable provided that requirements are still met.

You must not be an employee, although you may carry non-executive posts on the board of companies, foundations or other organizations.

You must have a pension, which must be received in full in Malta and represents at least 75% of your income chargeable in Malta. This means that any income other than pension cannot be more than 25% of the total income remitted to Malta.

Pension may be a government pension, periodic payments in respect of past employment, remunerations paid as lifetime or temporary annuities or regular income from an occupational retirement scheme, personal overseas retirement plan or insurance policies. Lump-sum pensions do not qualify.

You will be required to purchase a residential property with a value of at least €275,000, if located in Malta, or €220,000 if located in Gozo or in South of Malta. Property cannot be leased to a third party, if you hold the residence permit under this scheme.

Alternatively, instead of property purchase, you may rent a property in Malta, with a minimum annual rent of €9,600, if in Malta, or €8,750 if in Gozo or in South of Malta.
You must reside at least 90 days per year in Malta on average over a five-year period.

You must be a tax resident in Malta, and therefore you must not reside in another country more than 183 days.
Your period of stay under this program do not qualify for a long stay/permanent residence visa.

Under this program, your income accrued outside Malta, remitted to the country, will be taxed at a flat rate of 15%, provided that the minimum tax payable is €15,000. You may also benefit from the tax treaties concluded by Malta to claim a tax relief for tax paid abroad.

Requirements


- At least 18 years of age.
- Be a national of EU/EEA/Switzerland.
- Registration certificate confirming your entitlement to reside in Malta.
- Possess a comprehensive health insurance.
- Clean criminal record.
- Not to be a potential threat to Malta national security, public policy or public health.
- Not deemed to be against the public interest.

Restricted Nationalities


Non Economic European Area

dual citizenship


Dual citizenship is recognized in Malta. You are not required to renounce your previous nationality to become a citizen of Malta.


Documents Required


  • Evidence of Health Insurance
  • Original Police Clearance Certificate
  • Original Bank Reference Letter (Not older than 6 month)
  • Medical Certificate
  • Undertaking to purchase property
  • Undertaking to rent property
  • Affidavit of support for Dependents
  • Certified copy of passport
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Six passport-size photos
  • Statement of Source of Funds
  • Proof of pension
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required Yes
  • Personal visit required No
  • Language skills required No
  • Interview required No
  • Investment Single -
  • Investment Family 4 -
  • Minimum annual income -
  • Time to citizenship
  • Time to permanent residency
  • Visa-free countries 167
  • Financing available No

Fees

processing fees main applicant €2,500
total fees main applicant €2,500

Country details

Malta
EUR
356
Valletta
Europe
English Maltese
403000
The Republic of Malta is a densely-populated archipelago, located in the center of the Mediterranean, in the south of Italy, east of Tunisia and north of Libya. Malta is a former British colony, and currently a member of the European Union, the Schengen Area and the Commonwealth. It has about half million inhabitants. Its capital is Valletta, although its most populated urban center is Birkirkara, with over 22,000 inhabitants. Its official languages are Maltese and English. Since 2008 its legal tender currency is the Euro (EUR).

Visa Free Travel

With your new passport from Malta you'll be able to access 167 countries visa free
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Taxes

Malta levies personal income taxes on a residence and domicile basis. An individual is deemed to be a tax resident if he or she spends more than half year in the country, and is deemed to be domiciled in Malta if its permanent home is in Malta. Become a Maltese citizen does not automatically make you a tax resident or deemed to be domiciled in Malta.

Maltese ordinarily residents and domiciled in Malta are subject to personal income tax on their worldwide income and capital gains.
Maltese ordinarily residents and not domiciled in Malta are taxed on their income and capital gains arising in Malta and on income arising outside Malta that is remitted to Malta.

This means that if you are a Maltese resident non-domiciled (permanent home) in Malta, only your Maltese-source income and capital gains and your income remitted to Malta may be subject to tax. Foreign-source income not remitted and capital gains (remitted or not) may be tax-exempt.
Non-residents are only taxed on their income and capital gains from Malta.
Personal income tax rates are progressive from 0% to 30%. Capital Gains are taxable income. However, gains from the disposal of immovable property are taxed at lower rates of 8%, 10% or 12% depending on the circumstances. Property purchased under the citizenship by investment program, can be sold tax-exempt after the mandatory 5-year period, provided that the property is held for a period of 3 years as the owner’s ordinary residence.

Retirement visa holders may be taxed under an advantageous tax regime. They will be subject to a 15% flat rate on their foreign-source personal income remitted to Malta. Provided that their minimum tax payable is €7,500. Income arising in Malta will be taxed at standard rates.

Malta has not enacted Controlled Foreign Companies Rules. This means that income retained in a foreign entity owned by a tax-resident may not be subject to taxation.

In Malta, there are no inheritance, real property, net wealth and municipal taxes. There is a stamp duty applied on certain transfers such as real property or securities. Value-added tax is 18%.

Malta is the jurisdiction chosen by many international companies and holding companies, to establish their headquarters and do business in the European Union. Although its standard corporate tax rate is 35 percent, in practice there is a system of tax credits and refunds for shareholders reducing to effective tax rates of between 0 and 10 percent. Learn more about Malta’s Corporate Taxation, Legal Framework and tax treaties at incorporations.io/malta.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax No
  • Transfer tax No
  • Inheritance tax No
  • Net worth tax No
  • CFC law No
  • Tax residency days 183
  • Personal income tax rate 15%
  • Capital Gains tax rate 12%
  • Investment income tax rate 15%
  • Territorial taxation Yes

Procedures

Flag Theory | Passports.IO and our qualified attorney in Malta, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.

First, our lawyers will conduct a due diligence check on you to ensure that you are eligible, meet the criteria to apply for the program and your application will be approved.

If required, we will provide access to our network of real estate agents and developers in Malta to find the most suitable property according to your needs. As well as introduce you to Malta banks in order to open a bank account.

We will send you the application forms and provide assistance to complete the questionnaires, translate and authenticate documents. You must do a medical examination (we may recommend clinics in your jurisdiction) and provide us the medical assessment.

We will submit your application and supporting documents. Payment of non-refundable fee will be required.

Malta’s Immigration authority will verify the application and supporting documents and will approve or deny. After approval, you must carry out the acquisition or rental of real estate.
After that, you will receive your Certificate of Residence.
The whole process may take 2-3 months.

For further information on Malta’s Retirement programme and detailed procedures, contact us for a free private consultation.

Any time there is a change or new citizenship or residency by investment program, we'll send you an update via email. Your email will not be shared.