Malta

Passive Income

Malta Retirement Programme

💰 Minimum Income
€7,500
per year
Minimum annual tax of €7,500 (plus €500 per dependant) on pension income taxed at a flat 15% rate. At least 75% of income must come from a pension.
⏱️ Duration
Initial special tax status valid for 1 year, renewable for successive 2-year periods indefinitely
👪 Dependants
Yes
Spouse or partner, minor children (including adopted), and adult children unable to maintain themselves due to illness or disability. Each dependant adds €500 to the minimum annual tax.
🛂 Citizenship Path
No direct pathway
The programme grants a special tax status with an associated residence permit; it does not constitute permanent residency; the residence permit must be renewed periodically; it does not lead directly to citizenship

The Malta Retirement Programme (MRP) is a special tax status programme for retirees who receive a pension as their primary source of income. Established under Subsidiary Legislation 123.134 and administered by the Malta Tax and Customs Administration (MTCA), the programme offers a flat 15% tax rate on foreign income remitted to Malta with a minimum annual tax of €7,500. Originally available only to EU/EEA/Swiss nationals, it was expanded in 2020 to include all non-Maltese nationals.

Requirements
  • Must be a non-Maltese national (any nationality accepted since January 2020)
  • Must be in receipt of a pension constituting at least 75% of total chargeable income
  • Pension must arise from previous employment, self-employment, or statutory retirement arrangements
  • All pension income must be received in Malta
  • Must not be in an employment relationship
  • Must not be domiciled in Malta or intend to establish domicile
  • Must hold a qualifying property in Malta as principal place of residence
  • Property purchase: minimum €275,000 (Malta) or €220,000 (Gozo/South Malta)
  • Property rental: minimum €9,600/year (Malta) or €8,750/year (Gozo/South Malta)
  • Must reside in Malta for a minimum of 90 days per calendar year (averaged over 5 years)
  • Must not spend more than 183 days in any other single jurisdiction per calendar year
  • Non-refundable administrative fee of €2,500
  • Must hold EU-wide health insurance
Required Documents
  • Valid passport
  • Birth certificate and marriage certificate or divorce decree (where applicable)
  • Police conduct certificate (issued within the preceding 6 months)
  • Sworn affidavit
  • Proof of pension income (pension certificate or statements)
  • Health insurance policy covering EU-wide risks
  • Purchase agreement or lease agreement for qualifying property
  • Proof of payment of minimum tax (€7,500)
  • Passport-sized photographs
Duration & Renewal

The special tax status is initially confirmed for 1 year and renewable for successive 2-year periods, provided all conditions continue to be met. The beneficiary must continue to meet all eligibility criteria and submit an annual income tax return. EU/EEA/Swiss nationals register for a Registration Certificate, while third-country nationals receive a residence card renewed every 5 years.

Family Members

Dependants include the spouse or partner in a stable relationship, unmarried minor children (including adopted) in the custody and financial dependence of the beneficiary, and adult children unable to maintain themselves due to illness or disability. Household staff may also be included. Each dependant adds €500 to the minimum annual tax. Following the death of the beneficiary, a dependant who inherits or rents the qualifying property may continue to benefit from the special tax status.

Tax Implications
  • Foreign income remitted to Malta: 15% flat rate
  • Minimum annual tax: €7,500 plus €500 per dependant
  • Maltese-source income: taxed at 35%
  • Foreign capital gains: not taxed, even if remitted
  • Double taxation relief available under Malta's treaty network
  • No inheritance tax or wealth tax
Application Process

Applications must be submitted through an Authorised Registered Mandatary (ARM). The ARM submits the application with all documentation and the non-refundable €2,500 administrative fee. If approved, the Commissioner for Revenue issues a Letter of Intent valid for 12 months. Within that period, the applicant must provide proof of their qualifying property and payment of the minimum tax. Upon verification, the special tax status is formally granted. EU/EEA/Swiss nationals then apply for a Registration Certificate from Identita; third-country nationals apply for a residence card. Processing takes approximately 3 to 4 months.

Last verified Report an error