Malta Retirement Programme (MRP)
An individual in receipt of a pension who is a national of the EU, EEA, and Switzerland may opt to take up residency in Malta under the special tax programme called the Malta Retirement Programme (MRP), provided that the following conditions are satisfied.
Under the MRP regulations, the following are considered as dependants of the beneficiary:
- The beneficiary’s spouse or person with whom the beneficiary is in a stable and durable relationship; or
- The beneficiary’s unmarried minor children, adopted minor children of the beneficiary or of the spouse, as the case may be, where the beneficiary or the spouse has custody and the minor children are financially dependent on him/her and children of the beneficiary or of the beneficiary’s spouse who are not minors but who, because of circumstances of illness or disability of a serious gravity, are unable to maintain themselves.
1. Pension
The pension has to be received all in Malta in periodic payments and constitutes at least 75% of his/her chargeable income.
The MRP pertinent pension includes payments paid:
- In respect of past employment;
- In respect of services rendered to a State or a political subdivision or local authority thereof;
- Remunerations paid as lifetime or temporary annuities;
- Regular income from an occupational retirement scheme;
- Personal overseas retirement plan and
- Insurance policies.
Does not include:
- Pension in the form of a lump sum payment without periodic pension payments;
- Any capital sum received by way of commutation of pension, retiring or death gratuity or received as consolidated compensation for death or injuries.
2. Employment
The beneficiary cannot be in employment but may hold a non-executive post on the board of a company resident in Malta or participate in activities related to any institution, trust or foundation of a public character and any other similar organisation or body of persons, which are also of a public character, that is engaged in philanthropic, educational or research and development work carried out in Malta.
3. Not a beneficiary of another tax programme
The applicant is not already benefitting from any of the below tax programmes:
- High Net Worth Individuals;
- The Global Residence Programme Rules;
- The Residence Programme Rules,
- The United Nations Programme Rules,
- The Qualifying Employment in Innovation;
- Creativity (Personal Tax) Rules or
- The Highly Qualified Persons Rules.
4. Qualifying property
The applicant must own a qualifying property for at least €275,000, if the property is situated in the north or central of Malta, and €220,000 for property situated in Gozo or the south of Malta. Other than owning a property in Malta, the applicant may rent a property for at least €9,600 per annum, if the property is situated in the north or central of Malta, and €8,750 if the rented property is in Gozo or the south of Malta.
The qualifying property has to be the applicant principal place of residence worldwide and it cannot be sub-let, it has to be solely occupied by the applicant and his dependants (including his/her household staff).
5. Self-economic sufficient
The applicant is in receipt of stable and regular resources that are sufficient to maintain himself/herself and his/her dependants without recourse to the social assistance system in Malta.
6. Valid travel document
The applicant is in possession of a valid travel document.
7. Sickness Insurance
The applicant is in possession of sickness insurance which covers himself and his dependants in respect of all risks across the whole of the EU normally covered for Maltese nationals. The health insurance cover must be procured by a company licensed in Malta or by an international reputable health insurance company.
8. Domicile
The applicant is not domiciled in Malta.
9. Language
The applicant can adequately communicate in Maltese or English
10. Fit and proper test
The applicant must satisfy a fit and proper test as prescribed by the relevant Maltese authorities.
11. Physical presence in Malta
Under the MRP scheme, the beneficiary has to stay in Malta 90 days a year averaged over any five year period and cannot stay more than 183 days in another foreign jurisdiction in a calendar year.
