MALTA’S PERSONAL TAX PROGRAMMES

Published on January 15, 2021


Malta offers a range of benefits to individuals and their dependents seeking to relocate to Malta and acquire residence, under different tax programmes. These programmes have been designed to attract HNWI, whether EU, EEA, Swiss nationals or Third country nationals, providing for a favourable tax regime and conditions. The Maltese authorities have also extended certain programmes also to British individuals and other Third countries following Brexit.

The tax programmes are mainly:

  •  The Residence Programme;
  •  The Global Residence Programme;
  •  The Malta Retirement Programme;
  •  The United Nations Pensions Programme.

THE RESIDENCE PROGRAM AND THE GLOBAL RESIDENCE PROGRAM

Beneficiaries and their dependents under these programmes benefit from a special flat tax rate of 15% on foreign-sourced income which is remitted to Malta with a minimum tax liability of €15,000 annually.

One of the conditions to retain the status under these programmes is that the beneficiary and dependents may NOT reside in any other jurisdiction for more than 183 days in a calendar year.

Furthermore, the beneficiary must hold a qualifying property in Malta of not less than €275,000 in value or leased property of not less than €9,600 per annum.

The Global Residence Programme is the variant for Third country nationals, wishing to take up residency in Malta. Beneficiaries and dependents under this programme are also entitled for a Maltese residence card which grants access to the Schengen area.

THE MALTA RETIREMENT PROGRAM

The Malta Retirement Programme is designed for individuals in receipt of a pension, who are not in active employment and whose main income is derived from pensions, retirement schemes and/or annuities. This program also provides for an advantageous tax regime on foreign-sourced income which is received in Malta, at a flat 15% tax rate, with a minimum annual tax liability of €7,500 with an additional €500 for each dependent.

Once again under this programme, the applicant must hold a qualifying property in Malta, is in receipt of a pension which is entirely received in Malta. The beneficiary must not exceed 183 days in another jurisdiction in a calendar year and must reside in Malta for at least 90 days averaged over any five year period.

UNITED NATIONS PENSIONS PROGRAMME

The United Nations Pensions Programme is more specific in its requirements and designed for individuals in receipt of a UN Pension or a Widow’s/Widower’s Benefit, of which 40% of the said pension or benefit is received in Malta.

This programme EXEMPTS completely the UN Pension or a Widow’s/Widower’s Benefit, while other foreign-sourced income received in Malta is taxed at a 15% flat rate.

There is a minimum tax liability of €10,000 in respect of the remitted income, and an additional € 5,000 if both spouses are in receipt of a UN Pension.

David Azzopardi
Tax Manager
Tri-Mer Services

​david.azzopardi@trimerservices.com
www.trimerservices.com