The United Nations Pensions Programme builds on the success of Malta’s reputation in attracting expatriates seeking an alternative residence in a jurisdiction with a favourable tax regime, and a Mediterranean lifestyle. The process to become a Malta resident under this Programme is completed within 3 months, after which, the applicant enjoys Schengen residency and a tax flat rate of 15% on income remitted to Malta. To be eligible for the United Nations Pensions Programme, one must ensure that 40% of the UN Pension is received in Malta. One is also required to buy/rent a residence in Malta and pay a minimum annual tax of €10,000.
Maltese residents are not subject to tax in Malta on foreign sourced income not remitted to Malta, nor are they subject to tax on any foreign sourced capital gains whether remitted to Malta or not. Beneficiaries under the United Nations Pensions Programme are exempt from taxation on their UN pension income or widows’ benefit received in Malta. Income arising outside Malta which is remitted to Malta by the beneficiary or his dependants is taxed at a special tax rate of 15%. Any income of the beneficiary or his dependants, generated in Malta is taxable at a flat rate of 35%.