Remittance basis of taxation
15% Flat Tax Rate on foreign income remitted to Malta
Mediterranean Lifestyle
Safe, sunny, English-speaking EU destination
The Malta Retirement Programme (MRP) provides qualifying retirees with special tax status, applying a flat 15% tax rate on foreign income remitted to Malta, subject to a minimum annual tax. Designed for individuals whose pension constitutes the majority of their income, the programme combines residence rights in a stable EU Member State with access to Malta’s extensive double tax treaty network. The framework is rule-based, transparent and administered by the Malta Tax and Customs Administration through licensed Authorised Registered Mandatories.
Benefits
15% flat rate on remitted foreign income
Foreign-source income remitted to Malta is taxed at 15%, subject to a minimum annual tax of €7,500 plus €500 per dependant. Foreign capital gains are generally not taxable in Malta, even if remitted, for non-domiciled individuals.
Designed specifically for retirees
The programme is tailored for individuals receiving pension income that represents at least 75% of their chargeable income, providing a structured retirement relocation framework. Qualifying retirees from any nationalities are eligible to apply.
Cross-border pension planning advantages
Beneficiaries may rely on Malta’s network of over 70 double tax treaties, subject to treaty residence conditions and pension classification rules.
Right to reside in Malta
Following approval of special tax status, applicants obtain residence documentation through the competent immigration authorities, establishing lawful residence in Malta.
Established under Maltese law
The programme is regulated under Subsidiary Legislation 123.134 issued under the Income Tax Act (Chapter 123 of the Laws of Malta), providing statutory clarity on eligibility, taxation and compliance.
Plan Your Retirement in Malta
Who is this for
The Malta Retirement Programme is suited to retirees receiving pension income who wish to relocate to a stable European jurisdiction with a predictable tax framework. It is particularly relevant for internationally mobile retirees whose pensions arise from treaty jurisdictions and who require coordinated cross-border tax planning to prevent double taxation.
The programme is not intended for individuals seeking employment in Malta or for those whose income is primarily derived from active business operations. It is structured specifically for retired individuals seeking residence stability, tax clarity and treaty-backed coordination between Malta and their country of pension source.
Why Malta
Why Malta
Malta combines EU membership, political stability and a long-established remittance-based tax system. With over 70 double tax treaties and a clear legislative framework for retirement taxation, Malta offers a credible and predictable base for internationally mobile retirees.
Country Highlights:
- EU Member State
- English as an official language
- Extensive double tax treaty network
- Stable legal and tax framework
- Mediterranean lifestyle and healthcare standards
Key Contacts
Dr. Jean-Philippe Chetcuti
Magdalena Velkovska
Katarzyna Liszka
Nertila Aliko
Request a Confidential Consultation
Requirements
Malta Retirement Programme Rules
The Malta Retirement Programme is regulated under Subsidiary Legislation 123.134 of the Laws of Malta, issued under the Income Tax Act (Chapter 123). Special tax status is granted by the Malta Tax and Customs Administration following formal review and approval.
Upon grant of special tax status, the beneficiary may proceed to regularise residence through the competent immigration authorities.
Qualifying Retirees
Applicants must be in receipt of a pension which constitutes at least 75% of their chargeable income. The pension may arise from previous employment, self-employment or statutory retirement arrangements. The applicant must not be domiciled in Malta and must not intend to establish permanent domicile there.
Beneficiaries must reside in Malta for at least 90 days per calendar year on average over a five-year period and must not spend more than 183 days in any other single jurisdiction in a calendar year.
A comprehensive fit and proper assessment applies. Applicants must demonstrate good conduct, maintain valid health insurance covering risks in Malta and the EU, and comply with due diligence and anti-money laundering standards.
Rent or Purchase Qualifying Property
Applicants must hold qualifying residential property in Malta, either through purchase or rental, meeting the prescribed value thresholds depending on whether the property is located in Malta or Gozo. The property must serve as the principal place of residence and be retained throughout the period of benefiting from the programme. Only the MRP beneficiaries may reside in the qualifying property.
Background and Compliance Checks
A comprehensive fit and proper assessment applies. Applicants must demonstrate good conduct, maintain valid health insurance covering risks in Malta and the EU, and comply with due diligence and anti-money laundering standards.
The Malta Retirement Programme is administered by the Malta Tax and Customs Administration, which reviews applications for compliance with statutory eligibility conditions. Applications must be submitted by a licensed Authorised Registered Mandatory.
The process includes due diligence checks and verification of pension income, source of funds, tax compliance history and property arrangements. Following approval of special tax status, the applicant may proceed to obtain a residence card from the competent immigration authorities.
Process/Timeline
Initial Consultation and Eligibility Assessment
- Review of pension structure, treaty implications and residence objectives.
- Verification of property arrangements and minimum tax exposure.
Preparationand Submission of STS Application
- Compilation of supporting documentation.
- Submission by licensed ARM to the Malta Tax and Customs Administration.
Review and Approval
- Regulatory review and due diligence by MTCA.
- Issuance of special tax status approval.
- Registration for Maltese tax compliance obligations.
Residence Permit Application
- Application for Maltese residence card with the Immigration authorities.
Approval and Registration
- Applicants complete final registration and residence formalities in Malta, enabling them to begin enjoying the benefits of the Malta Retirement Programme.
FAQs
[question] What is the tax rate under the Malta Retirement Programme? [/question]
[answer] Foreign income remitted to Malta is taxed at 15%, subject to a minimum annual tax of €7,500 plus €500 per dependant. Maltese income is taxed at 35%. [/answer]
[question] Can my spouse be included? [/question]
[answer] Beneficiaries must reside in Malta for at least 90 days per calendar year on average over a five-year period and must not exceed 183 days in any other single jurisdiction in a calendar year. [/answer]
[question] Does the programme require a capital investment? [/question]
[answer] No capital contribution is required. Applicants must meet minimum tax obligations and maintain qualifying residential property in Malta. [/answer]
[question] Is Malta suitable for retirees? [/question]
[answer] Yes. Malta is widely regarded as a retiree-friendly destination due to its climate, safety, healthcare quality, and use of English in daily life. [/answer]
[question] Is this tax or legal advice? [/question]
[answer] No. This information is provided for general guidance only and does not constitute legal, tax, or financial advice. [/answer]
