United Nations Pensions Programme of Malta

Special Tax Status for UN Pensioners

Antoine Saliba Haig | 15 Jun 2016

Un Pensions Tax

The United Nations Pensions Programme provides for the granting of a special tax status to individuals who meet a number of conditions. An individual may benefit under this scheme if he/she is in receipt of a United Nations pension of which at least 40% is received in Malta. 

United Nations Pensions Programme - Legal Basis

The United Nations Pensions Programme regulations were enacted by virtue of Legal Notice 184 of 2015, under the Maltese Income Tax Act. The scope of these regulations is to determine the conditions of individuals residing in Malta under the United Nations Pensions Programme. 

United Nations Pensions Programme - Requirements

The requirements in order to apply for a special tax status under the UN Pensions Programme rules are the following:

  • Invividual is required to pay a non-refundable contribution of €4,000 to the Commissioner for Revenue;
  • Individual is required to pay a minimum tax in respect of income arising outside Malta which is received in Malta, excluding UN pension of €10,000 and an additional €5,000 in the event that both spouses are in receipt of a UN Pension. 
  • Individual is required to own or rent a qualifying property in Malta;
    • The values of the property must be for a minimum of €275,000 if property is bought in Malta or €220,000 if bought in Gozo/South Malta.
    • The values of the property must be for a minimum of €9,600 if property is rented in Malta or €8,750 if rented in Gozo/South Malta.

United Nations Pensions Programme - Eligibility

An individual is eligible to apply under the United Nations Pensions Programme if he/she satisfies the following conditions:

  • Individual is in receipt of a UN pension or a widow/er benefit of which at least 40% is received in Malta;
  • Individual is not benefitting under any other residence scheme in Malta;
  • Individual is not a Maltese national
  • Individual and his/her dependants must be covered by an EU Health Insurance;
  • Individual must be a fit and proper person

Beneficiaries under this programme may also have household staff providing a service in their qualifying property, as long as all the requisite procedures are satisfied.

United Nations Pensions Programme - Taxation

An individual benefitting from the United Nations Pensions Programme shall be:

  • Exempt from income tax on the UN pension income;
  • Subject to a tax rate of 15% on any income arising outside Malta which is received in Malta, excluding the UN pension income;
  • Subject to a tax rate of 35% on any other income arising in Malta.

A household staff would be subject to tax in Malta at the normal rates and is precluded from benefitting from the 15% tax rate.

Our Residency Service

Applications are to be processed via Mandataries authorised by the Maltese Government to handle application process and act as liaisons between the applicant and the Maltese authorities. Our law firm is registered as an authorised mandatary by the Maltese immigration and tax authorities according to Maltese law. Led by Dr Jean-Philippe Chetcuti, Chetcuti Cauchi's award winning Residency & Citizenship Law team is the oldest specialised immigration law practice in Malta. We have successfully represented individuals and families ranging from expatriate retirees, emigrants seeking employment, applicants for work permit, individuals seeking Maltese citizenship, to HNW individuals on the Forbes List. 

We are able to advise you on the tax and legal implications and requirements of the residence application process and indicate expected time frames based on the specific circumstances and nature of your application. Our advice covers the rules applicable to immigrating to Malta under a number of available residence programmes as well as practical relocation assistance ranging from transportation and insurance to schooling and health insurance coverage. 

 


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