The Malta Retirement Programme
Information Date : 3rd October 2012
Author : John Huber and associates, Malta. John Huber is Authorised as Registered Mandatory for the Malta Retirement Programme and Malta High Net Worth Scheme
On the 1st October 2012 Legal notice L.N. 317 of 2012 INCOME TAX ACT (CAP. 123) Malta Retirement Programme Rules, 2012 was published. This legal notice introduced a new scheme ‘The Malta Retirement Programme’ that appeases the requirements of many EU , EEA or Swiss nationals whose main income is from pensions, retirement schemes and plans and lifetime or temporary annuities.
Applications can only be submitted through an Authorised Registered Mandatory
The requirements are as follows:
Once an EU / EEA / Swiss national has acquired the right to reside in Malta in terms of a Registration Certificate, one may also apply for a tax status in terms of the Malta Retirement Programme (MRP). Put simply, the entire pension/s must be declared in Malta and the pension/s shall constitute at least 75% of the total income chargeable to tax in Malta. Tax shall be a flat rate of 15% on the gross pension/s that shall be chargeable to tax in Malta. There is a minimum tax liability of €7500 per annum which is increased by €500 for each dependent. Husband and wife must pay a minimum of €8000. All individuals resident in Malta and benefitting from the Malta Retirement Programme must not reside in any other single jurisdiction for more than 183 days in any year and must also reside in Malta for a minimum of 90 days a year averaged over any five-year period.
In order to qualify for the Malta Retirement Programme status, the applicant must either own property or lease property in Malta or Gozo. Lease must be taken for not less than a twelve month period and evidenced by a certified lease agreement submitted together with the application.
The minimum amounts are as follows:
Purchase of Property in Malta €275,000
Purchase of Property in Gozo €250,000
Lease of Property in Malta €9,600 annually
Lease of Property in Gozo €8,750 annually
Prospective applicants should always seek advice from an knowledgeable Authorised Registered Mandatory proficient in the various Malta residence schemes in order to assess which Malta Resident Scheme is most suitable for their requirements. Applications can only be submitted through an Authorised Registered Mandatory.
Disclaimer - No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. At John Huber and associates we endeavour to provide accurate and timely information, yet there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity
Guide section: Tax
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