Malta Retirement Programme

Moving to an idyllic place, surrounded by the sea, is a popular choice made by many every single year. The majority of Northern Europeans crave the warmer climes of the Mediterranean; city dwellers seek nature and a slower, cleaner lifestyle in the countryside. Retiring in Malta offers both of these worlds, and the island is one of the best contenders across the globe for retirement. If you're eligible, you might even be able to take advantage of the retirement scheme in Malta outlined below, where tax is applicable at a rate of only 15%.

Malta compared to other Retirement Destinations

A nation bursting with sun, sea, history, and beautiful architecture, topped with delicious food—what more could you want? Retiring in Malta is an option well worth looking into. With an average of 265 days of sunshine annually, you can rest easy knowing you'll have plenty of opportunities for outdoor activities, from swimming to exploring every part of our of quaint Maltese villages, or countless trip to get to know our sister island of Gozo.

Copared to the rest of Europe, the Maltese summer is long and hot. You can expect to enjoy the sea as early as on May, or, for if you're a little more courageous, even April. In recent years, winters are steadily becoming warmer and sunnier, making for perfect hiking and picnic weather.

Culture and History of Malta

Malta boasts an especially rich and complex history, from sabre-tooth tigers and ancient temples to colonial times under Roman and Arab rule, the Knights and the British, to name just a few key historical periods. Even if you were to visit one church a day, it would take you a year to see them all—there are 365 churches across the island! There is a wealth of local cultural highlights for expats to become immersed in. Residents are spoiled for choice when it comes to events, entertainment, fine dining or just having a coffee and a chat. Valletta boasts regal architecture, centuries-old theatres, halls, palaces, art centres, and great nightlife.

Your entertainment options change with the seasons. In summer, most events are held outdoors and occur later on in the day to help beat the heat. Water sports, such as kayaking and canoeing, are hugely popular across the island’s many beaches, and waterpolo is a big local favourite hen it comes to sports. Yachting is also very common in Malta, with many localities offering extensive berthing for boats, yachts, and super yachts; owners often set off for trips around the island throughout the year, or enjoy a weekend anchored in some hidden bay along the coast.

Those in the process of retiring in Malta have already found a haven on the island. Malta has one of the largest expatriate communities in Europe, made up of students, professionals, and fellow retirees. Many find the island to be affordable and easy to live in, and being small, getting around is easy, even with public transport.

Easily Accessible to all of Europe

Malta is quite close to many European countries, and is around three hours from the mainland, making visiting relatives or vice versa easier. It creates endless opportunities to travel to places like North Africa, Tunis, Morocco, Italy, and Sicily, where many Maltese people go for weekends or a day of driving, shopping, and sightseeing.

Applicable Tax

Many foreigners consider retiring in Malta due to its favourable tax system. To benefit from the Retirement Scheme, you must declare a minimum of 75% of your pension and a minimum of 25% of your normal income. In addition, applicants may not benefit from one of the schemes below unless they renounce such schemes:

  • Residents Scheme Regulations;
  • High Net Worth Individuals Rules; or
  • Highly Qualified Persons Rules.

In Malta, there’s no inheritance tax, gift tax, or wealth tax - only stamp duty paid when transferring Maltese real estate (5%) to their name and on transfers of specific shares in Maltese companies (2%). Otherwise, should you be approved, your final tax rate will be that of 15%.

Maltese Healthcare System

Another key factor for all expats and people retiring in Malta is the exceptional healthcare found on the island. If you’ve applied for the retirement scheme here, your mandatory insurance will cover care at the public, state-of-the-art hospital, Mater Dei, and local polyclinics, as well as our excellent private hospitals. Malta has recently experienced a surge in medical tourism due to the fact that it is far cheaper than options in mainland Europe.

The Retirement Scheme in detail

Retirement has always been a major contributor to the Maltese real estate market. It was actually mentioned at a recent launch by the Ministry of Finance, Economy and Investment, where the Government announced a newly-designed Permanent Residence Scheme for retirees. Those currently at retirement age and get their main income from such retirement schemes and plans, and who are planning on retiring in Malta, are sure to be well-taken care of.

The scheme has adopted a minimum tax liability of €7,500, plus a further €500 per dependant:

  • Applicants will be asked to prove that they are either on the EU transposition of rights, or that they have medical insurance.
  • Retirees must live in Malta for an average of 90 days per year over a five year period, and they are can’t to live in any other single jurisdiction for more than 183 days per year.
  • The Malta Retirement Programme is applicable only to those who either own/lease real estate in Malta or Gozo. Should the property be leased, the rental period—as stated in the rental agreement— should be for a minimum of twelve months and evidenced by a certified rental agreement, which is to be submitted along with the application.

The minimum amounts for purchasing or leasing a property in Malta or Gozo are as follows:

  • Purchase of Property in Malta: €275,000
  • Purchase of Property in Gozo/ South of Malta: €250,000
  • Lease of Property in Malta: €9,600 annually
  • Lease of Property in Gozo/South of Malta: €8,750 annually

The following documentations and information will need to be submitted during the application process:

  • Four passport-sized photographs (colour) for each applicant; Birth or Marriage Certificate; Copies of Passports (page of personal details);
  • A Police Conduct Certificate (in English);
  • A declaration under oath or a solemn declaration stating that the individual does not have any ongoing criminal or civil proceedings;
  • Original statement/s from the pension provider stating the full pension details;
  • Health cover – this may be either by the transposition of EU Health rights via the S1(E121) or by having private medical healthcare; and
  • A non-refundable administrative fee of €2,500.

Additional Information

With over 21 years of experience within the real estate market, Damcar Properties Unite is best positioned to help you find your dream home. With our main office located in Msida, we strive to provide our clients with the very latest investment opportunities in-line with their budget and requirements.