United Nations Pensions Programme Rules, 2015

By virtue of Legal Notice 184 of 2015, the Government of Malta has issued new rules which provide for an exemption from income tax to beneficiaries who are in receipt of a pension or a widow/er’s benefit from the United Nations.

One of the main conditions of the UN Pensions Programme is that at least 40% of the applicant’s UN Pension income is received in Malta. Furthermore, beneficiaries will need to hold a qualifying property in Malta. If the beneficiary opts to acquire immovable property, the value of the property must be of at least €275,000. However if the property is situated in the south of Malta or in Gozo, the minimum value of the qualifying property is that of €220,000. A beneficiary under the UN Pensions Programme also has the option to rent instead of acquiring immovable property. This minimum annual rental payment has to be at least €9,600 if the property is situated in Malta or €8,750 should the property be in the south of Malta or in Gozo.

It is important to note that the UN pension income received in Malta, will be exempt from Maltese tax. Nevertheless, other foreign sourced income remitted into Malta will be taxed at a flat rate of 15%, however the UN Pensions Programme establishes a minimum tax of €10,000 per year. In the event that both the applicant and his/her spouse receive a UN pension, an additional €5,000 shall be paid as minimum tax, totalling €15,000.

The UN Pensions Programme is applicable to EU/ EEA/ Swiss nationals and third country nationals, excluding Maltese nationals.

Applications for the UN Pensions Programme may be applied for through an Authorised Registered Mandatory. CSB Group is an officially recognised Authorised Mandatory by the Inland Revenue Department (IRD), and may assist individuals who wish to apply for a special tax status under the UN Pensions Programme.