Malta lowers tax for eu pensioners

Only weeks after been chosen as the best country to retire to, new taxation concessions announced by its Government look designed to swell the exodus of EU pensioners  to Malta.

English speaking Malta has long been a home for those looking for low crime rates, high standards of healthcare and all the year round good weather. Now, with other countries like France, Cyprus, Greece and Spain in economic turmoil - and taxation increases hitting locals and expats alike, Malta with its growing economy looks an increasingly attractive alternative.

The announcement of new taxation dispensations for pensioners looks like a clever move by the Malta Government to increase its appeal to the citizens of the third age with moderate disposable incomes.

Ray Woods the owner of UK based MaltaBuyProperty explains,

"For those looking to make Malta their permanent home, this has always been a painless process requiring a minimum of formality and a very modest income.

"With the GBP and other currencies at a continuing high against the euro, property prices stable and no Council Tax or equivalent on Malta, demand has again accelerated - as the prospect of heading for the sun and leaving the doom and gloom behind has grown in appeal. Crime rates in the UK also seem to be a factor.

"A month or so ago Malta was voted by Yahoo Finance and Castle Insurance Brokers as the top country in which to retire. To help build on this demand, the Government of Malta has announced a new taxation regime for some pensioners thinking of becoming permanent residents of the island."

To qualify for the scheme, applicants must be in receipt of a pension that represents the majority of their income - and purchase a property on Malta for a very reasonable 275,000m euros on the mainland, or 250,000 euros on its smaller rural sister island, Gozo. They also have to pay a one off registration fee of 2,500 euros.

"They will then be taxed at only 15% of any income remitted to Malta, but with a minimum tax bill of 7,500 euros," explains Woods.

"We believe that for pensioners with a reasonable retirement income, this is a very attractive proposition as they are only taxed on income which they bring into Malta - and then at only 15%. Add to that, the fact there is no Council Tax or other annual property taxes and no inheritance tax, Malta must be worthy of a look!"