Two separate programmes, the Malta Retirement Programme (MRP) and the United Nations Pensions Programme (UNPP), are designed to entice foreign retirees to retire in Malta by offering beneficial residency and tax status. A comparison of the two programmes is provided below:

Malta Retirement Programme (MRP)

The MRP is a programme designed to draw in those who are interested in retiring to Malta who do not currently have a job and rely only on their pension for income. Participants in this programme may be eligible for a flat tax rate of 15% on income received from foreign origins and remitted to Malta, with the option to claim relief from double taxation. Participants in the MRP are also eligible for a residency visa, which enables them to reside in Malta. The Malta Retirement Programme (MRP) offers an option of retirement for eligible individuals, including non-EU and EU nationals, granting them resident status and various tax benefits in Malta. It is crucial to remember that participation is subject to certain conditions, such as paying an annual minimum tax, owning a home that qualifies in Malta, and continuing to have health insurance.

United Nations Pensions Programme (UNPP)

Conversely, the UNPP is a retirement programme established specifically for eligible former United Nations Joint Staff members and their families in Malta. This programme provides a special tax status to residents of the EU/EEA, Switzerland, and third-country nationals (but not Maltese citizens) who receive a pension or widows/widowers benefit from the UN, provided that at least 40% of the benefit is obtained in Malta. Such an individual is qualified to participate in activities associated with any public institution, trust, or foundation, as well as any other comparable organisation or group of individuals, likewise, of a public character, that works in Malta on initiatives linked to research and development, education, or charity. Under the UNPP, a non-executive director of a company with its headquarters in Malta may also be eligible to retire there.

Taxation and Residency Status

Under the UNPP, beneficiaries of the programme are exempt from taxation on their UN pension, including widows’ benefits remitted to Malta (the minimum applicable tax is 10,000 EUR), and foreign-sourced income that is not remitted to Malta is not subject to taxation. Income that the beneficiary or their dependents remit to Malta is subject to a special 15% tax rate. Individuals receiving a pension as their primary source of income, on the other hand, are eligible for tax benefits and resident status under the MRP for retirees in Malta. A 15% tax, or a minimum tax of 7,500 EUR, will be levied by the Maltese government on any income received in Malta that does not originate in Malta. All income, however, is subject to regular rate taxation in Malta. Please refer to the Malta Retirement Programme (MRP) for a comprehensive summary of the MRP tax requirements.

Programmes Eligibility and Requirements

Prospective retirees who are not long-term or permanent residents of Malta and who receive a widows/widowers benefit or a United Nations pension, at least forty percent of which is obtained in Malta, may apply for the UNPP. Refer to our UNPP Comprehensive Guide for a comprehensive summary of the UNPP requirements. The MRP is intended for potential retirees who do not have a job and receive a pension as their primary source of income, are not employed in Malta, own qualifying property there, are not beneficiaries of any other residency programmes in Malta, have a sufficient and stable income, are covered by an EU health insurance policy, are not planning to domicile in Malta for the next five years, and are otherwise good and fit person.

Papilio Services: Your Tax Residence Advisor

Papilio Services, as Authorised Mandatories (ARM00905), can provide you with the essential expert guidance you need prior to initiating an application for any of the aforementioned retirement programmes. Our team of experts is prepared to assist you with the MRP and/or the UNPP application process in Malta. Contact us to arrange a complimentary consultation so that the application process can be initiated.