Perhaps the number one reason why many foreigners decide to retire in Malta is the quality of life that you can lead on the Maltese islands.
Maltese people are generally very welcoming and accept foreigners with great ease.
This in return makes it extremely easy for the foreigner to integrate with the local community fairly quickly.
In addition to the captivating history, stunning beaches, pleasant Mediterranean climate and very low crime rate, the Maltese Islands have a lot to offer as regards to incentives when you buy property in Malta, take up permanent residency or retire in Malta.
It is to be noted that a permanent residency permit does not entitle the holder to work in Malta.
A permanent resident may use the Maltese Islands as a base to work from though, provided that he is not offering his services on the local market.
A permanent resident may however hold shares in Maltese companies.
Low Tax Rate
A 15% flat rate is charged on all income that you receive in or remit to Malta (whether from local or foreign sources.) It is to be noted here, that no tax is paid on other income that you may have which is not brought to Malta.
If you are a permanent resident, you can also make us of the double taxation agreements that exist between Malta and other European countries as well as Canada, the United States of America and Australia. This agreement ensures that you never pay tax twice for the same income.
The above is subject to a minimum payment of Euro 4,500 income tax per year.
Exempt from Importation Customs Duty
If you’re transferring your normal place of residency from a country outside of the European Union to the Maltese Islands, you can benefit from an exemption of customs duty on importation of personal property.
These include household goods and motor vehicles. Conditions apply.
If you’re relocating to Malta from another EU member state you are automatically exempt from paying customs duty on importation of personal property.
No Minimum Stay Requirements
If you become a permanent resident, you can travel freely to and from Malta without the need for a visa. You may also travel freely without visas in the Shengen Area.
No Succession Tax
No death duty is payable in Malta. However on a person's death a 5% charge on immovable property located in Malta applies.
No social security contributions are payable if you become a permanent resident in Malta.
There are also no wealth taxes or property taxes applicable in Malta. A capital gains tax or final withholding tax has to be paid on the sale of a property in Malta or Gozo if you have not been living in said property for at least three consecutive years.
A permanent resident is entitled to vote in the Local Council Elections.
If you decide to retire in Malta and apply for a Permanent Residence Permit, you must satisfy the following conditions:
- you must have an annual income of at least Euro 23,000 or you must possess a worldwide capital of at least Euro 349,000.
- you must provide proof that you are able to remit annually to Malta (from overseas) an income of at least Euro 13,950 plus a further Euro 2,300 for each of your dependents. Dependents here refer to your spouse, children under 21 years of age, parents or grandparents who are wholly dependent on you.
- once you have the residency permit, you must buy immovable property in Malta within 1 year.
- Any property that you purchase cannot be rented out for gain.
For more information on the Permanent Residency Scheme and the current required values of purchase and/or lease of immovable properties, visit the website of the Maltese Inland Revenue Department here.
There are many popular destinations for retiring overseas, but if you're after a serene and laid-back Mediterranean lifestyle, your best bet would probably be to retire in Malta!
The content of this page is intended to provide a general guide to the subject matter. It is recommended that you seek specialist advice about your specific circumstances and to get up-to-date information.
Search this site