Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Malta Retirement Programme (MRP)
The Malta Retirement Programme offers EU/EEA/Swiss retirees a flat 15% tax on pension income remitted to Malta (minimum €7,500/year), with full exemption on other foreign income.
Regime overview
- Status
- Active
- Type
- Preferential
- Duration
- Indefinite
- Highlight
- 15% flat tax on pension income, foreign gains exempt
Tax regimes comparison
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 35% / 8%
- Dividends
- None
- Wealth Tax
- None
- Inheritance Tax
- None
Retirement Programme (MRP)
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 15% flat
- Foreign Income
- Remittance basis
- Capital Gains
- 0%
- Dividends
- 0%
- Wealth Tax
- None
- Inheritance Tax
- None
IP Box Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 1.75% effective
- Foreign Income
- Partially exempt
- Capital Gains
- 95% deduction
- Dividends
- Standard Malta rates
- Wealth Tax
- None
- Inheritance Tax
- None
Highly Qualified Persons (HQP) Rules
- Eligibility
- Residency
- Duration
- 5 years
- Income Tax
- 15% flat
- Foreign Income
- Taxed
- Capital Gains
- N/A
- Dividends
- N/A
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | Retirement Programme (MRP) | IP Box Regime | Highly Qualified Persons (HQP) Rules |
|---|---|---|---|---|
| Eligibility | Any resident | Residency | Residency | Residency |
| Duration | Indefinite | Indefinite | Indefinite | 5 years |
| Income Tax | 0-35% | 15% flat | 1.75% effective | 15% flat |
| Foreign Income | Remittance basis | Remittance basis | Partially exempt | Taxed |
| Capital Gains | 35% / 8% | 0% | 95% deduction | N/A |
| Dividends | None | 0% | Standard Malta rates | N/A |
| Wealth Tax | None | None | None | None |
| Inheritance Tax | None | None | None | None |
| Learn more | Learn more |
Key benefits
15% flat tax on pension income
Other foreign income exempt if not remitted
Foreign capital gains exempt, even if remitted
Requirements and considerations
None
Minimum presence: 90 days/year
Investment required: EUR 275K property or EUR 10K/year rent
Migration pathways
Program details
The Malta Retirement Programme (MRP) is designed specifically for EU, EEA, and Swiss nationals who are retired and receiving a pension. It offers a flat 15% tax rate on pension income remitted to Malta, with a minimum annual tax of EUR 8K .
Foreign income other than pensions is exempt unless remitted to Malta. Foreign capital gains are always exempt. The program requires applicants to own or rent qualifying property in Malta and to spend at least 90% of their time in Malta (approximately 329 days).
Property requirements: purchase at minimum EUR 275K (Malta) or EUR 220K (Gozo/South Malta), or rent at minimum EUR 10K /year (Malta) or EUR 9K /year (Gozo/South Malta).
Interested in Retirement Programme (MRP)?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
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ECJ Ruling on Malta CBI
EUR-Lex Court Judgment C-181/23·Last checked: 16/01/26
Merit-Based Naturalisation Regulations
Malta Parliament Legal Notice 159/2025·Last checked: 16/01/26
2025 Citizenship Act Amendments
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