The Malta Retirement Programme (MRP) offers a favourable residence and tax status to individuals who have retired from active employment and wish to reside in Malta. The programme is available exclusively to nationals of the European Union, European Economic Area, and Switzerland, and is designed to provide a stable and tax-efficient environment for individuals who receive a pension as their primary source of income.
To qualify, applicants must receive a pension that is fully remitted to Malta and that constitutes at least 75 percent of their chargeable income. The pension must be supported by official documentation and must be of a regular, recurring nature. Employment is not permitted under this programme, although certain non-remunerated or honorary roles may be allowed.
Beneficiaries under the MRP are taxed at a flat rate of 15 percent on all foreign-source income that is remitted to Malta, subject to a minimum annual tax of €7,500. An additional tax of €500 per dependant is also payable each year. Foreign income that is not brought into Malta is not subject to Maltese tax under the remittance basis.
The programme is structured to provide predictability and peace of mind for individuals who wish to enjoy retirement in Malta without being exposed to excessive or complex tax burdens. Local income or capital gains, if any, may be taxed separately according to Maltese tax law.
While beneficiaries are prohibited from taking up employment in Malta, they may hold a non-executive director position on the board of a company that is resident in Malta, provided that the role does not involve active management or remuneration beyond board-level duties.
In addition, individuals may participate in charitable, cultural, educational, or public-interest initiatives in Malta, including involvement with foundations, trusts, or institutions of a public character, provided such activities are voluntary and not profit-driven.
To maintain eligibility under the Malta Retirement Programme, the individual must:
These rules are designed to ensure that the individual maintains a clear and genuine link with Malta as their primary place of residence.
We can assist clients at every stage of the process, from confirming eligibility to securing special tax status and ensuring continued compliance with the programme’s requirements.