New Malta Retirement Scheme launched

  • 08.October 2012
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On the back of the news that Malta came first as the Best place to Retire in a study issued by Yahoo Finance the Malta Government launched a very enticing new Retirement scheme where applicants will benefit from a flat rate of tax of only fifteen percent.

The Finance, the Economy and Investment Ministry confirmed that the retirement segment has always been a core market ever since the initial permanent residence schemes were first released.

The new retirement scheme will definitely induce further investment into Malta from EU, EEA and Swiss nationals however others nationalities will also be interested in such a scheme. Anyone who is in retirement age whose main income is from retirement schemes and plans, pensions, and lifetime or temporary annuities will be appeased.

A minimum Tax liability of €7, 500 plus €500 per dependent (husband and wife = €8, 000) has been set for this scheme whereas the applicants must prove that they are either on the EU transposition of rights or that they have medical insurance.  Retirees must also live in Malta for an average of 90 days per year over a five year period but they mustn’t live in any other single jurisdiction for more than 183 days within any year.

In order to qualify for the Malta Retirement Programme status, the applicant must either own a property in Malta or a lease property in Malta or Gozo. In case of leasing a property, the rental agreement should be made for nothing less than twelve months and evidenced by a certified rental agreement should be submitted together with the application.

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

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

In order to qualify for the Malta Retirement Programme status, the applicant must either own property or lease property in Malta or Gozo. Lease must be taken for not less than a twelve month period and evidenced by a certified lease agreement submitted together with the application.

The minimum amounts are as follows:

  • Purchase of real estate  in Malta €275,000
  • Purchase of Property in Gozo €250,000
  • Lease of Property in Malta €9,600 annually
  • Lease of Property in Gozo €8,750 annually

The following are the documents and the information required to complete the application process:

Application process documents:

  • 4 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 on 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.
  • A non-refundable administrative fee of €2500.

Those that qualify for the New Retirement programme interested in this scheme can only apply through a acknowledged Authorised Registered Mandatory.  For professional advise regarding buying a property or leasing a property in Malta within the limits it is always recommended to use a reputable real estate agent in Malta.

Related links/Topics:  Malta HNWI Tax Residence Scheme – Non Europeans and Malta HNWI Tax Residence Scheme – Europeans

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