03.09.2026
The Malta Retirement Programme (MRP), regulated under Subsidiary Legislation 123.134 of the Laws of Malta (Malta Retirement Programme Rules), grants a special tax status to foreign retirees. The scheme is open to EU, EEA, Swiss, and third-country nationals, provided their foreign-sourced pension constitutes at least 75% of their total chargeable income and is fully remitted to Malta. Beneficiaries and their eligible dependents enjoy favourable tax treatment on foreign pension income remitted to Malta, subject to statutory eligibility, property, and ongoing compliance requirements.
To qualify under the rules, an applicant must satisfy several key criteria. Beyond the 75% foreign pension requirement, the applicant must not benefit from any other Maltese special tax residency scheme, such as the Global Residence Programme or Highly Qualified Persons Rules. Furthermore, the applicant must not be a Maltese national or domiciled in Malta, nor intend to establish Maltese domicile within five years. The applicant must also demonstrate stable financial resources, hold valid travel documentation, maintain comprehensive health insurance covering all EU-wide risks, and be fluent in English or Maltese. A comprehensive fit and proper assessment applies, requiring a police conduct certificate issued within six months and a sworn declaration confirming the absence of pending civil or criminal proceedings.
Additionally, applicants must own or rent a qualifying residential property in Malta or Gozo as their principal residence. For purchased properties, the minimum threshold is €275,000, reduced to €220,000 if situated in Gozo or the South of Malta. For leased properties, the annual lease value must be at least €9,600, or €8,750 in Gozo or the South of Malta.
Applications must be submitted to the Commissioner for Tax and Customs exclusively through an Authorised Registered Mandatory (ARM). A non-refundable application fee is payable upon submission, set at €2,500 if the property is in Gozo or the South of Malta, and €3,000 for properties located elsewhere. Submissions must include certified passport copies, apostilled birth and marriage certificates, property deeds or lease agreements, health insurance policies, and proof of pension income. Following background vetting, the Commissioner issues a Letter of Intent valid for 15 days, after which formal confirmation is granted upon final property verification.
Under the programme, foreign pension income remitted to Malta is taxed at a flat rate of 15%, with the possibility of claiming double taxation relief. However, this benefit is subject to a minimum annual tax liability of €7,500 for the primary beneficiary, plus €500 for each dependent and household staff member. Any other income arising in Malta is taxed at a flat rate of 35%. Household staff may reside in the qualifying property and benefit from the household allowance, provided they have worked for the beneficiary for at least two years prior to the application; their remuneration is taxed under standard Maltese progressive rates.
To retain status, beneficiaries must submit an Annual Tax Declaration, maintain their property and health coverage, reside in Malta for an average of at least 90 days per calendar year over a rolling five-year period, and spend no more than 183 days in any other single jurisdiction in a calendar year. Any event leading to cessation, or changes to dependents or staff, must be notified to the Commissioner in writing via the ARM within four weeks. Special tax status ceases upon voluntary surrender, death (unless transferred to an eligible dependent within 183 days), or failure to maintain qualifying conditions, though the Minister for Finance retains discretion to condone certain breaches due to unforeseen circumstances.