The Malta Retirement Programme

John Huber and associates

Today, 1st October 2012 Legal notice L.N. 317 of 2012 INCOME TAX ACT (CAP. 123) Malta Retirement Programme Rules, 2012 was  published .

In brief an outline of the new scheme is as follows :-

Once an EU / EEA / Swiss national has acquired the right to reside in Malta in terms of a Registration Certificate, one may also apply for a tax status in terms of the Malta Retirement Programme (MRP). Put simply, the entire pension/s must be declared in Malta and the pension/s shall constitute at le ast 75% of the total income chargeable to tax in Malta. Tax shall be a flat rate of 15% on the gross pension/s that shall be chargeable to tax in Malta.  There is a minimum tax liability of €7500 per annum which is increased by €500 for each dependent. Husband and wife must pay a minimum of €8000. All individuals resident in Malta and benefitting from the Malta Retirement Programme must not reside in any other single jurisdiction for more than 183 days in any year and must also reside in Malta for a minimum of 90 days a year averaged over any five-year period.

Applications can only be submitted through an Authorised Registered Mandatory.

In order to qualify for the Malta Retirement Programme status, the applicant must either own property or lease property in Malta or Gozo.  Lease must be taken for not less than a twelve month period and evidenced by a certified lease agreement submitted together with the application.

The minimum amounts are as follows:

• Purchase of Property in Malta €275,000

• Purchase of Property in Gozo €250,000

• Lease of Property in Malta €9,600 annually

• Lease of Property in Gozo  €8,750 annually

More information can be found on the link www.maltaretirementprogramme.com