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CSB Group is a licensed Agent by Community Malta and the Residency Malta Agency, with License number AKM-CSBI-21.
Malta Retirement Programme & Special Status
A Tax Residence Programme for all nationalities alike.
Special tax status can be granted to retirees when remitting their pension into Malta and meeting some additional investment criteria. The Malta Retirement Programme has been included the Maltese Income Tax Act thanks to the Subsidiary Legislation 123.134 and dut to changes in 2020, it allows all nationalities to benefit from the programme.
Thanks to its prime location, weather and scenery, Malta is not only the perfect spot as a business hub but also a well-desired place to retire and have a peaceful life whilst being close to Continental Europe.
Which are the main requirements to benefit from the Malta Retirement Programme?
In order to benefit from the Malta Retirement Programme, applicants will need to fulfil certain criteria, in terms of investment, remittance of funds and presence in the country:
- Purchase of property with a minimum value of €275,000 (situated in the north and central areas of Malta), or €220,000 (situated in Gozo or in the south of Malta) or rental of a property for a minimum of €9,600 per annum (situated the north and central areas of in Malta), or €8,750 (situated in Gozo or in the south of Malta);
- Is in receipt of a pension, as supported by documentary evidence, all of which is received in Malta and constitutes at least 75% of his chargeable income;
- A minimum stay of 90 days over a 5 year period (on average)
- The beneficiary must not reside in any other jurisdiction for more than 183 days
The Malta Retirement Programme is positioned as a flexible scheme for retirees of all nationalities alike, including third-country nationals, except Maltese, looking for a suitable place to retire whilst having tax benefits.
Other Eligibility Requirements
Under the MRP there is no minimum stay in Malta, however, applicants cannot reside in any other jurisdiction for more than 183 days per year. Furthermore, applicants must be willing and able to provide the following documents:
- Certified true likeness passport photos;
- A valid travel document;
- Birth certificate & marriage/divorce certificate (when applicable)
- Police conduct certificate;
- Sworn affidavit;
- Proof of pension;
- Health insurance policy;
- A purchase/lease agreement in Malta.
The Malta Retirement Programme: The Benefits
Retirees of all nationalities alike, including third-country nationals, except Maltese, taking up residence in Malta through the Malta Retirement Programme will benefit from a flat tax rate of 15% on the pension remitted and a minimum tax payable shall be of EUR7,500 for the beneficiary and EUR500 for each of his/her dependents (if any).
Also, the beneficiary may hold a non-executive post on the board of a company in Malta or have a part in activities related to any institution, trust or foundation of a public character which is engaged in philanthropic, educational, or research and development work in Malta or Gozo.
Tax Obligations and Duties under the Malta Retirement Programme (MRP)
An individual may benefit under this system if he/she is in receipt of a pension as supported by documentary evidence, all of which is received in Malta and constitutes at least 75% of his/her chargeable income. A person who has been given a special tax status under the MRP will be subject to the following tax rates:
Income earned outside of Malta and received in Malta by the beneficiary, their spouse, minor children (including adopted children), and children who are under the care of the beneficiary or their spouse, as well as children who are not minors but are unable to support themselves due to severe illness or disability, will be taxed at a rate of fifteen cents (0.15) per euro. This tax rate applies from the year the special tax status is confirmed until the year it ceases, inclusive.
Any other income of the beneficiary, their spouse, minor children (including adopted children), and children who are under the care of the beneficiary or their spouse, as well as children who are not minors but are unable to support themselves due to severe illness or disability, will be taxed at a rate of thirty-five cents (0.35) per euro. This applies to income that is not taxable under the rules mentioned above.
Why Retire in Malta
Malta, a small island nation in the Mediterranean, offers numerous compelling reasons to consider retiring there. Firstly, its favourable climate is a major draw. With over 300 days of sunshine annually, retirees can relish in the mild winters and warm summers, creating an ideal environment for outdoor activities year-round.
Additionally, Malta boasts a relatively low cost of living compared to other European countries, making it an attractive destination for those seeking to stretch their retirement budget. The transportation system is well-developed, featuring an extensive bus network and affordable taxi services, enabling retirees to easily explore the island and its numerous attractions.
Moreover, Malta's healthcare system is highly regarded, with both public and private options available, ensuring retirees receive excellent medical care. The country is known for its safety and security, providing retirees with peace of mind and a welcoming environment.
When it comes to leisure activities, Malta offers a vibrant array of festivals and events throughout the year, allowing retirees to immerse themselves in the rich cultural heritage and enjoy the lively atmosphere. For history enthusiasts, the island offers numerous historical sites, including ancient temples, medieval fortresses, and beautifully preserved towns. Malta's stunning beaches, with their crystal-clear waters and picturesque landscapes, provide retirees with ample opportunities for relaxation and enjoyment.
Additionally, the island has a thriving expat community, offering retirees the chance to connect with like-minded individuals and engage in social groups catered to their interests. With its idyllic climate, affordable cost of living, efficient transportation system, excellent healthcare, safety, rich cultural events, historical attractions, beautiful beaches, and vibrant expat community, Malta proves to be an enticing retirement destination.
How can we help you?
With over 35 years of experience in the corporate and financial services industry in Malta, CSB Group is commited to provide top-notch services to Private Clients worldwide. CSB Group, has been providing Investment immigration services to High-Net-Worth families since the inception of these programmes.
Our team will guide you through the process of applying for the Malta Retirement Programme rule status and we will be able to give you further tax advice and support.
We have had the good fortune of working with Andres and his team at CSB on a variety of citizenship and residency matters for our clients. CSB has given us thoughtful and thorough advice and been an invaluable partner. Despite being many time zones and thousands of miles away, Andres and his team are incredibly responsive and willing to speak at any hour of the day. We would certainly recommend them to anyone seeking best-in-class legal advice related to global citizenship and residency issues.
An independent investment office
We chose Malta as our new permanent home and CSB Group to help us through the residency process. They went way beyond our expectations treating our application as if it were their own. Their service was nothing short of stellar from understanding our needs preparation of the required documentation, and follow-up phase during a period with the sharpest movement restrictions. Malta deserves a place on every investor’s radar, mostly because of the surprising efficiency permeating the place, efficiency which starts with CSB.
Thank you for making everything run perfectly smooth for us. Your team looks after us as if we were their parents and they are everything one can wish for; accurate, fast and with a vast knowledge. We are very fond of CSB Group and we are more than content.
Retired Swiss Entrepreneur
We are impressed by CSB's continuous ambition to exceed customer’s expectations. We truly believe in long lasting partnerships, so in the past 15 years we were lucky enough to take advantage of CSB's international reach and professional services. CSB's industry experts take the administrational burden off our shoulders and let us focus on what matters - business! CSB made us both, more professional and more successful in our international commercial activities. Thank you CSB, smarter business truly starts here!
Gottfried J. Sint
Noricum Investments Ltd
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