Foreigners (EU/EEA/Swiss Nationals only) who are retired and receive only a pension may submit an application under the Malta Retirement Programme if they satisfy the following conditions:
- May not be in an employment relationship;
- Not to be a Maltese National or a third country national;
- Not benefitting from similar programmes in Malta;
- Applicant must hold a Qualifying Property purchased. The applicant needs to either purchase an immovable property in Malta of not less than € 275,000 or rent an immovable property in Malta for not less than € 9,600 annually as a lessee. Said Qualifying Property Holding must be the Applicants primary residence, not be a shared property, used as a family residence for the Applicants spouse and dependents and cannot be let/sub-let;
- Be in receipt of a pension, as defined, all of which is received in Malta and constitutes at least 75% of his chargeable income in Malta;
- In possession of an EU wide sickness insurance;
- Not be domiciled/ intend to establish domicile in Malta within 5 years;
- Must be a fit and proper person;
- Must reside in Malta for more than 90 days averaged over any 5 year period;
- Does not spend more than 183 days per calendar year in another jurisdiction.
Individuals benefiting under this programme are taxed at a flat rate of 15% on all foreign sourced income if remitted into Malta whilst all other income is taxed at 35% (treaty relief available). However, there is a minimum tax of €7,500 by the main beneficiary for any year of assessment. The programme may cover spouses, dependents and special carers.
Upon application the Beneficiaries and dependents enjoy a special Tax status and also will be issued with a residence card, renewable every 5 years, which will entitle the holder to reside in Malta and to move freely within the Schengen countries without a Schengen visa.