Many people have the wish to relocate to another country, and sometimes this is related to retirement as well. Under certain circumstances it may be cheaper to retire to another country if cost of living is too high in your home country. The Global Residence Programme in Malta enables non-EU, non-Swiss and non-EEA citizens to move to Malta, and take advantage of the lower taxation and lower cost of living. The programme is aimed at people who are economically self-sufficient.
The taxation is probably the most important aspect you may think about when changing your country of residence. Malta has currently signed over 60 double taxation treaties, and the tax rate on income from sources outside of Malta is a flat-rate of 15%. Depending on whether there is a double taxation treaty with your home country, or where the income is generated, you will not have to pay taxes in the source country. The minimum taxable income is €15,000, even if your actual income is lower than that. Income generated from local sources, such as employment or investments is taxed at 35%.
When taking part in the Residence Programme, it is also mandatory to rent or buy property in Malta. If purchased the minimum property value must be €275,000 (€220,000 in Gozo and the south of Malta). When property is rented instead, the annual rent must be a minimum of €9,600 (€8,750 in Gozo and the south of Malta). When you have a residence permit from Malta it is not allowed for you to reside in another country for more than 183 days in a year. However, there is no minimum of days that you have to reside in Malta.
It is also possible to optimise the taxation when you have to pay more than the 15%. If you have any questions regarding the application process for the Global Residence Programme of Malta, you are welcome to contact us at the legal office of Dr. Werner & Partner. We have helped many clients to achieve the best possible taxation when they relocated to Malta, and we also help with everything else that may then become relevant, such as renting property. If you wish to get more information on how to also obtain the Maltese citizenship, you can read more information about the Individual Investor Programme of Malta.
