The ‘Maltese Retirement Programme’ (MRP)
Malta is a great place to retire and take up residence at any age. The introduction of the Malta Retirement Programme (MRP) in 2012 aids many EU, EEA or Swiss nationals whose main income is from pensions, retirement schemes or such related investments. There is also an attractive tax structure supporting this. Foreigners living in Malta are only taxed on their Maltese (derived) income and on overseas income that is remitted to Malta. They are not taxed on their worldwide income. Additionally, there are no property or wealth taxes. There is Capital Gains tax but it does not apply if it is from the sale of your main residence as long as you have owned and occupied it for the previous 3 years. There is also protection from double taxation through agreements with a large number of countries all over the world which ensure that tax is never paid twice on the same income in different countries. Other foreign earned income such as dividends, interest and royalties that are remitted to Malta can qualify for a reduced rate of tax or are exempt from taxation (private pensions and certain capital gains).
We recommend that you seek advice from a professional in this field so don’t hesitate to ask us for further information and we will be happy to put you in touch with one of our contacts who specialize in this area.
Firstly, applications have to be submitted by an Authorised Registered Mandatory. Once the applicant has been granted a Registration Certificate, he or she may then apply for tax status within the Malta Retirement Programme (MRP) which benefits from a 15% tax rate.
- Applicants must be from an EU or EEA (Norway, Iceland, Leichenstein) country or a Swiss national.
- Individuals benefitting from MRP status must not live in any other country for more than 183 days a year and must also reside in Malta for a minimum of 90 days a year averaged over a 5 year period.
- Individuals must own or rent a property in Malta or Gozo. For purchasing, there is a minimum value of €275,000 for Malta and €250,000 for Gozo. For rentals, there is a minimum annual value of €9600 for Malta and €8750 for Gozo. When renting there is also a minimum term required of 1 year which has to be supported by a copy of the lease agreement.