Malta Tax Residence Programmes Amendments

Malta Retirement Programme now also open to Non-EU Nationals

Dr. Antoine Saliba Haig | Published on 23 Mar 2020

Malta Global Residence Programme

The Maltese Parliament has by virtue of Legal Notice 69 of 200 approved a number of amendments to some of Malta's tax residency programmes. The programmes which were amended include the Global Residence Programme, The Residence Programme, the United Nations Pension Programme and the Malta Retirement Programme

Malta Retirement Programme Amendments

The main amendment introduced by the new Legal Notice is in relation to individuals deemed to be eligible to apply under the Malta Retirement Programme rules. Before the coming into effect of these amendments, the Malta Retirement Programme was only open to EU, EEA and Swiss nationals. With immediate effect, by virtue of this Legal Notice the Malta Retirement Programme is now also open to Non-EU nationals planning to retire in Malta. 

Another amendment introduced by this Legal Notice concerns beneficiaries of the Malta Retirement Programme who obtain a long term / permanent residence status. Such individuals shall be taxable on any income accruing in or derived from Malta or elsewhere, and whether received in Malta or not in respect of income mentioned in article 4 of the Income Tax Act and subject to tax at the rates mentioned in article 56 of the Act.

The Malta Retirement Programme is now applicable to all nationalities (except Maltese nationals) subject to meeting the programme's requirements. An individual is eligible to apply for the Malta Retirement Programme if such person is in receipt of a pension all of which is received in Malta and constitutes at least 75% of his/her chargeable income. In addition the applicant must either rent or purchase a property in Malta and be covered by a health insurance policy. 

Individuals obtaining this special tax status will benefit from a flat rate of 15% on income arising outside of Malta that is received in Malta. The minimum annual tax which is to be paid is of €7,500 for the main applicant and €500 for each dependent. 

Amendments regulating the demise of the Main Applicant

Another important amendment which was introduced by the Legal Notice, covers all the four tax residence programmes mentioned above. This caters for the situation where the Main Applicant who applied and acquired such status passes away. By virtue of this legal notice states, the tax residence status acquired under one of these programmes shall be transferred to the dependant of the deceased main applicant who has inherited or continued renting the property which was being used as the applicant's primary residence. Apart from holding the property, the beneficiary must also satisfy the other requirements as set out by the respective residence programme. 

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