United Nations Pensions Programme, 2015
By virtue of Legal Notice 184 of 2015, the United Nations Pensions Programme Rules, 2015 were introduced to attract individuals who are in receipt of a UN Pension which as defined by these rules, means a pension paid out of the United Nations Joint Staff Pension Fund and who do not benefit from any other ‘Special Tax Status’ in Malta.
The meaning of "beneficiary" in terms of this programme is an individual who is in receipt of a UN pension and who has been granted special tax status in terms of these rules.
A beneficiary is an individual who is neither a permanent resident nor a long-term resident of Malta and who proves to the satisfaction of the Commissioner that:
- the individual is in receipt of a UN pension or a Widow’s / Widower’s Benefit, of which at least 40% is received in Malta;
- he is not a person who benefits under the Residents Scheme Regulations, the Global Residence Programme Rules, the High Net Worth Individuals - EU / EEA / Swiss Nationals Rules, the High Net Worth Individuals - Non-EU / EEA / Swiss Nationals Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules or the Highly Qualified Persons Rules;
- he is not a Maltese national;
- he holds a qualifying property holding;
- he is in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta;
- he is in possession of a valid travel document;
- he is in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals for himself and his dependants;
- he can adequately communicate in one of the official languages of Malta; and
- he is a fit and proper person.
- he must not stay in any other tax jurisdiction for more than 183 days in any calendar year;
A beneficiary may hold a non-executive post on the board of a company resident in Malta or partake in activities related to any institution, trust or foundation of a public character and any other similar organisation or body of persons, which are also of a public character, that is engaged in philanthropic, educational or research and development work in Malta.
A beneficiary may also have household staff providing a service in their qualifying property, as long as all the requisite procedures are satisfied.
This programme defines a "dependant" as:
- the beneficiary’s spouse or person with whom the beneficiary is in a stable and durable relationship;
- minor children including adopted minor children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph (a) above;
- children who are under the age of twenty-five, including adopted children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph above, provided that such children are not economically active;
- children including adopted children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph (1) above, who are not minors but who because of circumstances of illness or disability of a serious gravity, are unable to maintain themselves;
- dependant brothers, sisters and direct relatives in the ascending line of the beneficiary or the person mentioned in paragraph (1) above; and in any case:
is not a beneficiary under the Residents Scheme Regulations, the Global Residence Programme Rules, the High Net Worth Individuals - EU / EEA / Swiss Nationals Rules, the High Net Worth Individuals - Non-EU / EEA / Swiss Nationals Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity Rules or the Highly Qualified Persons Rules; and
resides with the beneficiary in the qualifying property;
Minimum Property Requirements
The beneficiary must own or rent a ‘Qualifying Property Holding’ which the individual occupies as his primary residence as the following minimum requirements:
- Owned Immovable Property situated in Malta other than the south of Malta - €275,000
- Owned Immovable Property situated in the south of Malta or in Gozo - €220,000
- Rented Immovable Property situated in Malta other than the south of Malta - €9,600 per annum
- Rented Immovable Property situated in the south of Malta or in Gozo - €8,750 per annum
Tax Treatment and Minimum Tax Requirement
A beneficiary’s UN pension income or Widow’s / Widower’s Benefit as the case may be, received in Malta following the granting of the special tax status, shall be exempt from income tax.
A rate of 15% shall apply on any income excluding the UN pension or Widow’s / Widower’s Benefit arising outside Malta in the year immediately preceding the year of assessment in which it is received in Malta by the beneficiary, the beneficiary’s spouse and children with the possibility to claim relief of double taxation provided that the minimum amount of tax payable in terms of these rules is paid.
Minimum tax payable shall be Ten Thousand Euro (€10,000) in respect of the beneficiary and an additional Five Thousand Euro (€5,000) in the event that both spouses are in receipt of a UN pension.
Income of a beneficiary, the beneficiary’s spouse and children referred to in these rules that is not chargeable to tax under these rules at the rates referred to in sub-rules (1) and (2) shall be charged as separate income at the rate of 35%.
The minimum tax shall be payable by not later than the 30thApril of the year immediately preceding the relevant year of assessment. Such payment shall be accompanied by a return made to the Commissioner that provides proof that all the conditions and requirements have been satisfied. The said return does not need to be submitted in the year in which the special tax status is granted.
In the case of the year in which the special tax status is granted, where it is evident that the special tax status will not be granted before the 30th April, the minimum tax is to be paid before the special tax status is granted. Any tax paid shall not be refundable.
Amongst other conditions stipulated by these rules, an individual shall cease to possess the Special Tax Status if such individual becomes a "long-term resident" or "permanent resident" of Malta. In such event, the individual shall be taxable on any income accruing in or derived from Malta or elsewhere and whether received in Malta or not in respect of income mentioned in article 4 of the Income Tax Act and subject to tax at the rates mentioned in article 56 of the Income Tax Act.
Application Fee and Authorised Registered Mandatory (ARM) Requirement
An individual, represented by an Authorised Registered Mandatory, may apply to the Commissioner for special tax status under these rules, by paying a non-refundable administrative fee upon application of €4,000 or €3,500 where the qualifying property is situated in the south of Malta or Gozo.
We are registered and approved by the local tax authorities to act as an Authorised Registered Mandatory (ARM).