Malta was recently rated by International Living Magazine as the best place to live in for expats. “Every day is like a holiday,” it reports expat Barbara Bode as saying.
Indeed the warm winters and abundance of sunshine are attractive factors for people wishing to retire in Malta. That, plus the fact that the island is within a few hours of the rest of Europe and that everyone speaks English, make Malta the favourite for many retirees.
Because of the good weather, many people like to go for walks in the countryside.
Another great plus is that Malta is still a safe place where people enjoy spending a lot of time outdoors. In summer, in fact, you will often find people sitting outside their houses on chairs on their doorstep, watching passersby and up for a little chat.
Do be warned that Maltese houses don’t have central heating so, although the temperature in winter never reaches zero degrees, inside does get a bit cold and you may need to invest in a heater, unless you have a home with a fireplace.
The social scene
There are a number of expat groups which organise a variety of activities such as monthly coffee mornings with a guest speaker, as well as luncheons and outings for anyone who wants to participate. These are easy to find via a search on Facebook or Google.
Other incentives for retiring in Malta
Low tax rate
You’ll be pleased to learn that a 15% flat rate is charged on all income that you receive, whether from Malta itself or through foreign sources. Also, you do not pay any tax on any income that is not brought to Malta.
If you are a permanent resident, you can also make use of the double taxation treaties that exist between Malta and numerous other countries including European countries, as well as with Canada, the United States of America and Australia. These treaties ensures that you never pay tax twice for the same income. Do note that this is subject to a minimum payment of € 4,500 income tax per year. For a full list of existing treaties please consult the Malta Financial Services Authority website
Exemptions from Importation Customs Duty
If you are moving from a country outside the EU to the Maltese Islands, then you are entitled to a customs duty exemption on the importation of personal property. These include household goods and motor vehicles, but do be aware that certain conditions apply.
If you’re relocating to Malta from another EU member state you are automatically exempt from paying customs duty on the importation of personal property.
Travelling outside Malta
If you become a Maltese national you will enjoy visa-free travel to the countries listed here.
No Succession Tax
No death duty is payable in Malta. However on a person's death a 5% charge on transfer of immovable property located in Malta applies.
Other Incentives
There are also no wealth taxes or property taxes applicable in Malta. A capital gains tax or final withholding tax has to be paid on the sale of a property in Malta or Gozo if you have not been living in said property for at least three consecutive years.
Registration certificates, Residence cards: Conditions for residence
If you are going to be living in Malta for more than three months, then you will need to get hold of a registration certificate.
This is a document which is issued to an EU national and which confirms that person’s right of residence under European law. Residence cards are issued to family members of an EU national who are third country nationals. The card confirms such persons’ right of residence in Malta.
To get hold of one of these certificates you will need to fill in Application Form CEA/21 and to present it personally to the Department for Citizenship and Expatriate Affairs together with the required documents.
To be able to apply for a Permanent Residence Permit, you must satisfy the following conditions:
- You must have an annual income of at least €23,000 or you must possess a worldwide capital of at least €349,000
- You must provide proof that you are able to remit annually to Malta (from overseas) an income of at least €13,950 plus a further €2,300 for each of your dependents. Dependents here refer to your spouse, children under 21 years of age, parents or grandparents who are wholly dependent on you
For more information on the Permanent Residency Scheme and the current required values of purchase and/or lease of immovable properties, visit the Maltese Inland Revenue Department website here.
Once you have a permanent residence certificate then you are entitled to vote in the local council elections as well as the EU elections (but not the general elections)… and enjoy the many pleasures Malta has to offer!
Do I need health insurance?
Yes. In order to be able to apply for residence you need some form of health cover. If you are not paying social security contributions, one option is to take out private health insurance. There are a number of companies in Malta which offer health insurance under a variety of packages.
Do note…
…that the content here aims to give you a general guide about moving to Malta. We advise you to ask for specialist advice about your specific circumstances should you decide to make the move. Good luck and we hope to see you soon!
