Residing and Retiring in Malta

Malta is the ideal destination for those who intend to establish their residence, as well as those who choose to spend their retirement here. Malta’s main benefits include its climate, geographical location (which makes it easier for foreigners to travel to and from Malta) and its health services, as well as high standards in all levels of education. Besides the above-mentioned advantages, it is pertinent to mention fiscal advantages through the various Double Taxation Treaties with various countries.


There are also specific tax schemes that attract people to Malta, such as the Highly Qualified Persons, the Global Residence Programme, the Malta Retirement ProgrammeThe Residence Programme as well as the United Nations Pensions Programme.  All these tax schemes offer an advantageous income tax rate of 15%.


Retirees who are residents but not domiciled in Malta may claim an exemption from tax in their country where their pension arises and have it taxed in Malta, provided there is a Double Taxation Treaty in place between Malta and the country from where the income arises. Those persons / retirees applying for a 'Special Tax Status' in terms of any particular tax scheme will be taxed at a flat rate of 15% but subject to a minimum tax liability.  Other retirees are taxed on foreign source income remitted to Malta at the progressive rates of tax which vary from 15% to 35%, with a tax free allowance of €11,900 for married couples and €8,500 for single persons.

Parent Tax Rates

In order to qualify for this computation, a parent must satisfy these conditions:

  • s/he maintained under his/her custody a child or paid maintenance (established or authorised by courts) in respect of his or her child;
  • the child was not over 18 years of age, or not over 21 years if receiving full-time instruction at a tertiary education establishment;
  • the child did not earn income in excess of €2,400 from gainful occupation.

This rate is applicable from 1st January 2012 and those who opt for the Parent computation have to file and FS4 which must be dated 1st January 2012 irrespective to when the employment started because the Parents’ Rate are effective 1st January 2012.