Many retirees are drawn to warmer climates after retirement. Some sun-drenched countries have got on well with seniors – Malta in particular offers tax breaks.
Valletta – Some retirees want to spend more of their twilight years in another country – they are usually drawn to regions with milder climates than Germany. But which countries are the best for retirement? Investment firm Global Citizen Solutions has assessed which European countries will be the most profitable for retirees in 2024.
A paradise for retirees? Malta offers many advantages
The top three countries are Portugal, Spain and Malta. Portugal and Spain have long been considered a “retiree’s paradise.” Malta, on the other hand, is an inland node. The island nation in the Mediterranean Sea is an EU member and, according to Global Citizen Solutions, attracts with a good healthcare system, attractive real estate prices, political stability and tax incentives.
In addition, unlike in Portugal or Spain, English is mostly spoken there, which makes it easier for many Germans to communicate. Additionally, many retirees are drawn to Malta’s mild, sunny climate and light, delicious Mediterranean cuisine.
Malta’s pension scheme with tax benefits
Malta has a pension scheme (Malta Pension Scheme MRP), In this, pensioners from abroad get special tax statusIt is valid for five years only. There is a flat tax rate of 15 per cent on foreign pension income paid into Malta.
Anyone looking to immigrate to Malta from Germany should also be aware of the existence of a double taxation treaty. For pensioners, even if they live in Malta, they still have to pay German taxes on their German state pension. However, withdrawals from company and private pension schemes from Germany are often taxed in Malta.
Depending on the individual case, different approaches may be useful for tax purposes if you wish to immigrate to Malta. So it is important to seek early advice.
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