Persons not domiciled in Malta are not taxed on their worldwide income but only on Maltese source chargeable income, capital gains and on foreign income remitted to Malta.

Where a pensioner not domiciled in Malta satisfies the conditions set out in the MRP, then he/she shall be entitled to additional beneficial tax treatment in addition to above-mentioned remittance and source basis of taxation. Once the applicant has acquired the right to reside in Malta in terms of a Registration Certificate and the application for the scheme has been approved, he/she is deemed to be resident in Malta and is chargeable to tax in accordance with the income:

  • All income arising outside Malta which is remitted to Malta by the beneficiary or dependent is taxable at 15% and such person may also claim double tax relief on the said amount subject to the following conditions;
  • Pension income in the form of a lump sum or any other capital sum received by way of retiring or death gratuity/compensation for death or injuries are exempt from Maltese income tax even if remitted to Malta;
  • Applicant must pay a minimum tax of €7,500 per annum and €500 per annum for every dependent and career;
  • Any tax paid under these rules at 15% shall not be refundable;
  • If there is any other income which does not fall under the alleged rules they are charged separately at the rate of 35%.

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