Malta to Double Minimum Retirement Tax Under New Visa Rules

Malta has confirmed major changes to its retirement program, with higher tax, property, and application requirements set to take effect on January 1, 2027.

Key points

• At present, retirees must purchase a property worth at least €275, 000, or €220, 000 in southern Malta or Gozo.
• Nevertheless, individuals who submit their applications by December 31, 2026, will remain eligible for the existing rules until the end of 2031.
• From 2027, the minimum annual rental requirement will rise to €14, 000 throughout Malta.
• The changes were introduced under Legal Notice 195 of 2026.
• The program is open to eligible retirees from EU and non-EU countries, including Switzerland and the European Economic Area.

While the minimum property purchase requirement will growth to €700, 000, under the new rules, the minimum annual tax for foreign retirees will double from €7, 500 to €15, 000. New Zealand Removes 17 Occupations From Green List.

At present, retirees must purchase a property worth at least €275, 000, or €220, 000 in southern Malta or Gozo. Those choosing to rent must pay at least €9, 600 annually, or €8, 750 in designated areas.

From 2027, the minimum annual rental requirement will rise to €14, 000 throughout Malta. The application fee will additionally rise from €2, 500 to €8, 500.

Meanwhile, the changes were introduced under Legal Notice 195 of 2026. The existing Malta Retirement Program will be replaced by a new Retired Pensioner status. It will remain valid for five years and can be renewed for another five years.

Despite the changes, the 15% tax rate on qualifying foreign income brought into Malta will remain unchanged.

Notably, the program is open to eligible retirees from EU and non-EU countries, including Switzerland and the European Economic Area.

Applicants must receive a pension accounting for at least 75% of their taxable income and must receive their full pension in Malta.

They must additionally spend an average of at least 90 days annually in Malta over five years and cannot stay in another single country for more than 183 days in a year. UK Announces Universities Eligible for Special Visa.

Although certain non-executive and charitable activities are permitted, retirees are required to maintain private health insurance and cannot take up regular employment in Malta.

Applications must be submitted through an authorized representative, along with proof of pension income, health insurance, police clearance, and property documents.

In practice, the application process generally takes two to four months, depending on document verification and background checks.

Malta's retirement program offers foreign retirees preferential taxation, but the upcoming changes will significantly growth the cost of qualifying for the scheme, particularly for those planning to purchase property. Stay Connected with ProPakistani. Obtain the latest international news and global stories wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

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