If you are looking for a place to retire in Europe, The Republic of Malta is a great option. It is a sunny Mediterranean island just south of Sicily. The small nation is the world’s 10th smallest country by area, and has a population of only 550,000. It boasts a year-round warm climate, a thriving economy (mainly due to tourism), and a growing expatriate community. Malta’s two official languages are Maltese and English, so it is easy for English-speaking expats to communicate. As an EU member state, Maltese residents have unlimited access to the Schengen zone.
The capital, Valletta, is a World Heritage City and a European Capital of Culture. Despite being the EU’s smallest capital city, it has a variety of shopping areas, bars, and restaurants. Architecturally, the city has everything from imposing 16th century fortifications, to exquisite Baroque palaces. As discussed in our article Exclusive Docks for Your Superyacht, it also has a top-tier marina known as the Grand Harbour.
Malta is one of the few countries in Europe that offers residency visas for retirees. Its retiree program is not just for senior citizens, it is available to any foreign national over 18 that relies on a pension as their regular source of income.
Eligibility:
To qualify, your pension must be paid in regular installments and must make up 75% of your chargeable income. Additionally, you must receive your pension payments in Malta. There is no specified pension amount. However, you will need to prove that you receive regular payments that are sufficient to support yourself (so you will not access Malta’s social assistance system). Depending on lifestyle choices, a single person can retire comfortably in Malta on €20,000 to €30,000 (approx. $21,000 to $31,000 USD) a year.
The pensioners’ program has a real estate requirement. You must rent or own a qualifying property on the island of Malta (or its sister island, Gozo) and you must occupy it as your principal place of residence worldwide. You cannot sub-let your property.
If you rent immovable property on the island of Gozo or in the south of Malta
Your annual rent must be at least €8,750 ($9,185 USD). Anywhere else in Malta, you must pay at least €9,600/year ($10,075 USD) in rent. You will need to show a certified 12-month lease agreement.
Foreigners who buy real estate in the Republic of Malta must spend at least €220,000 ($230,900 USD) if the property is located on Gozo or in the south of
Malta. If the house you buy is somewhere else on the island of Malta, it must be worth at least €275,000 ($288,625 USD)
Malta’s retiree program also has a minimum stay requirement. You must spend at least 90 days a year in Malta. Moreover, you must be a tax resident of Malta (and cannot spend more than 6 months in any other country). As a tax resident, you will be required to pay a minimum tax of €7,500 ($7,850 USD) per year.
Finally, you will need to submit a certified copy of your passport, a clean police conduct certificate, and prove you have health insurance coverage throughout the European Union.
Process:
You will need to submit your application form and supporting documentation to the
International & Corporate Tax Unit in an envelope marked “Application: Malta Retirement Programme.”
You must include a bank draft or check payable to the Commissioner for Revenue in the amount of €2,500 (non-refundable administrative fee).
Processing times for retiree applications take around 2–3 months.
If your application is approved, you are eligible for a five-year residence permit. Your residence visa is renewable, so long as you continue to meet the requirements. You will also qualify for certain tax benefits — specifically, a 15% flat tax rate on foreign pension income.
Relocating to Malta may be a great option if you are making retirement plans. It is a safe country with a rich culture and 300 days of sunshine per year. As with all of our residency program discussions, we suggest that you consult the Official Guidelines from the government of Malta. You should also reach out to some local immigration and tax professionals to learn more about the process and documentation required.
If you want to compare retirement destinations, you should read our related article Best Spot to Retire Abroad in 2024: Panama.