Malta Retirement Programme: Residency for Retirees

The Malta Retirement Visa is an immigration route for foreign nationals with sufficient income, the primary source of which is pension payments. Legally speaking, it is a combination of a residence permit based on financial self-sufficiency (Economic Self-Sufficiency) and the special tax status offered by the MRP (Malta Retirement Programme). The programme is aimed exclusively at pensioners. Those with passive income should consider alternative options — the GRP (Global Residence Programme), the standard residence permit under the Economic Self-Sufficiency scheme without special tax treatment, or the MPRP (Malta Permanent Residence Programme).

The main requirement for the Malta retirement visa relates to the nature of the income. At least 75 per cent must consist of pension payments from state or private funds, or annuities. A mandatory condition is that payments must be regular; one-off lump-sum payments are not taken into account. The remaining 25 per cent may include other forms of passive income: dividends, royalties or interest on deposits. It is a mandatory requirement that the entire amount be transferred to a bank account in Malta.

The Malta Retirement Visa grants access to Malta’s special tax status. This sets the tax rate at 15 per cent on any foreign income transferred into the jurisdiction. If your money is not repatriated to Malta, it is not taxed at all (non-domiciled resident). The minimum annual tax is from €7,500 per year for you, plus €500 for each family member included in the application. Income from sources within Malta itself is subject to tax at the standard rate of 35 per cent.

The MRP is not a residence permit, but a combination of a residence permit and a special tax status. Therefore, the Malta Retirement Programme has restrictions that are important to bear in mind when choosing an immigration route. For instance, you will not be able to work as an employee or be personally involved in the management of a company. You are permitted to hold shares in a business or company, as well as to hold non-executive director positions.

A pensioner moving to Malta under the Malta Retirement Programme is subject to certain residence requirements. You must spend at least 90 days on the island on average over any 5-year period. You may not spend more than 183 days a year in any other country. Generally speaking, you must demonstrate that the centre of your life’s interests has shifted to Malta. Comprehensive private health insurance for yourself and all members of your family is compulsory.

Retirement Residence Malta: eligibility criteria

The main requirements relate to the structure of your income. If pension payments account for less than 75 per cent of your income, you cannot move to Malta as a pensioner under the MRP scheme. However, the legal residence requirement also includes other conditions that must be met. Therefore, to minimise the risk of your application being refused, please check the current requirements before submitting your documents and confirm whether you are, in principle, eligible to participate in the programme in your particular circumstances.

Health insurance

The policy must cover medical risks throughout the European Union, not just in Malta itself. It must be taken out in the name of the main applicant and every person listed on the application. You may choose either a single family policy (Joint/Family Policy) or several separate policies. There are no legally binding requirements regarding the amount of cover; the general wording used is ‘All risks across the whole of the EU normally covered for Maltese nationals’. As a practical guide, cover should be from €100,000 per person per year.

The policy must cover hospitalisation, outpatient and inpatient treatment, doctor’s appointments, emergency care, medical repatriation and transport. A standard travel insurance policy is not suitable. The excess (deductible) should be as low as possible, ideally zero. An open-ended or annually renewable insurance policy covering the entire duration of the Malta Retirement Programme status is suitable.

Proof of accommodation

You may rent a qualifying property for the entire duration of your MRP Malta status, or own a property. Subletting is not permitted. The standard option is a long-term tenancy with a contract of at least 12 months. In the northern and central regions, the minimum rent is €9,600 per year (approximately €800 per month); on the island of Gozo and in the south, it is from €8,750 per year (approximately €730 per month). If you are planning to buy property in Malta, the minimum threshold also depends on the region – from €275,000 for the north and centre, and from €220,000 for the island of Gozo and the south. Date of purchase: after 1 July 2013. Documentary proof is required. Standard options include a registered tenancy agreement or a notarised deed of sale.

No criminal convictions

Each applicant will undergo a comprehensive due diligence / fit and proper test. A certificate of no criminal record is mandatory; this must be obtained from the jurisdiction of your nationality and from every country where you have resided for more than 6 months over the last 10 years. The document must have been issued no earlier than 6 months prior to the date of submitting the application for a Maltese retirement visa. Requirements regarding legalisation / apostille depend on the country where the documents are submitted and the specific consulate.

What else to bear in mind when assessing the conditions for retirement residence in Malta:

• documents must be submitted only through a licensed agent (ARM, Authorised Registered Mandatory);
• no other people may reside, either temporarily or permanently, in the rented or purchased property — only those named in the application and domestic staff; the property or individual rooms may not be let or sublet;
• you must not be domiciled in Malta and must not declare any intention to become so within the next five years; the special tax regime for pensioners is linked to ‘residence non-dom’ status;
• You may not apply to participate in any other tax schemes in Malta (such as the Global Residence Programme, the Nomad Residence Permit, the Highly Qualified Persons Rules, etc.);
• Only foreign nationals — pensioners from third countries, the EU and the EFTA — are eligible to participate in the programme; Maltese nationals are not eligible.

The Maltese pensioner visa is not issued automatically; your application may be refused without explanation. You must therefore ensure that you meet all the requirements in full.

Application process

An application for the MRP Malta requires the involvement of an authorised agent. This may be a law firm, an auditor or a notary public with the appropriate licence. They act as your official representative in dealings with the tax authority (CFR, Commissioner for Tax and Customs) and the immigration authority (Identità).

Preparing the documents

You will need to prepare a basic set of documents: the international passports of all those listed on the application, financial documents confirming regular income and the legitimacy of its source, and a certificate of no criminal record. In most cases, these documents must be translated into English and apostilled.

Submitting the application

This is the agent’s responsibility; the documents must be submitted to the Maltese Tax Authority’s office. Upon submission, a non-refundable government fee of €2,500 must be paid via bank transfer to the CFR’s account.

Due diligence

This is the longest stage and carries a fairly high risk of rejection. The check is comprehensive; if any issues arise, additional documents may be requested. If everything is in order, you will receive preliminary approval in the form of a Letter of Intent.

Fulfilment of compliance requirements

You may only begin the Malta Retirement Programme once you have received the Letter of Intent. You must enter into a long-term tenancy agreement, registered with the Housing Authority, or purchase a suitable property. You will also need a private health insurance policy with EU All Risks cover. A bank account is a mandatory requirement. The initial fee may be transferred from any financial institution operating within the SEPA zone. However, to receive final confirmation of your MRP Malta status, you must open a personal bank account in Malta itself. The final requirement is the payment of the minimum annual tax.

Obtaining the MRP Malta certificate

At this stage, a licensed agent will again be involved. They submit documentary evidence to the tax authorities confirming that all the requirements of the Malta Retirement Programme have been met. Typical examples include a tenancy agreement or property purchase contract, an insurance policy, a bank statement and a tax payment receipt. Only then is an official document issued confirming that MRP Malta status has been granted.

Applying for a residence permit

MRP status is not the same as a residence permit; they are distinct legal entities. To legalise your residence in Malta, you must complete the final stage of the immigration process. First, you must submit an application for an e-Residence Card, based on your legally confirmed Malta Retirement Programme status. You will also need to provide biometric data at the Identità office. The physical residence permit card is issued for one year and is renewable.

To retain your retirement residence in Malta, you must submit an Annual Return by 30 April each year, confirming payment of the minimum tax – at least €7,500 for the main applicant and from €500 for each dependant.

Validity period of the Maltese retirement visa and renewal conditions

You are granted the MRP Malta for an indefinite period; however, you must comply with and maintain the eligibility criteria. The physical Economic Self-Sufficiency / Tax Regime residence permit card, confirming your lawful immigration status, is issued for one year. It can be renewed annually following a successful compliance check.

What must be confirmed:

• annual payment of the minimum tax;
• ownership of or tenancy of eligible property, evidenced by a deed of sale or a long-term tenancy agreement;
• valid EU All Risks insurance cover for the entire subsequent annual period;
• proof that you have met the condition of residing in any other separate jurisdiction for no more than 183 days in a calendar year.

If you require further information on this topic, specific legal advice or a personalised strategy for obtaining a Maltese retirement visa, please contact our specialists.