Banking, pensions and tax in Malta
Malta taxes pensions and other foreign income only when brought into the country: retirees on the Global Residence Programme pay a flat 15%, at least €15,000 a year.
How your pension reaches a Malta bank, what Malta taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- 15% if remitted 15% on income brought into Malta. PwC Tax Summaries; GRP Rules; MRP Rules. Checked Oct 8, 2026.
- Top rate, local income
- 35% Over €60,000. PwC Tax Summaries; GRP Rules; MRP Rules. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Uprated yearly GOV.UK. Checked Oct 7, 2026.
- Canada OAS
- Agreement Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Malta
United States
Social Security
Yes. Social Security can be paid straight into a euro account at a bank in Malta: the Social Security Administration routes international direct deposits to Malta through the Federal Reserve Bank of Kansas City and has a sign-up form for Malta (SSA-1199-OP16). Payments go only to EUR accounts.
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid into a bank in Malta or a UK account. Malta is in the European Economic Area, so the pension rises every year as it would in the UK.
GOV.UK. Checked Oct 7, 2026.
Canada
Old Age Security
Paid while you live outside Canada only if you lived in Canada for at least 20 years after age 18. Canada and Malta have a social security agreement, in force since March 1, 1992, so years you lived in Malta after age 18 can count toward OAS.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Malta.
How Malta taxes you
A resident who is not domiciled in Malta is taxed on income arising in Malta and on foreign income received in Malta, not on foreign income left abroad; with €35,000 or more of foreign income not all brought in, the minimum tax is €5,000. Under the Global Residence Programme, foreign income you, your spouse and children bring into Malta is taxed at a flat 15%, with at least €15,000 a year; other income is taxed at 35%. Under the Malta Retirement Programme, for EU, EEA and Swiss pensioners, the whole pension must be received in Malta and is taxed at 15%, with at least €7,500 a year plus €500 per dependant. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to €12,000 | 0% |
| €12,001 to €16,000 | 15% |
| €16,001 to €60,000 | 25% |
| Over €60,000 | 35% |
PwC Tax Summaries; GRP Rules; MRP Rules. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; the US has an income tax treaty with Malta, which can decide which country taxes some income. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Malta?
Yes. Social Security can be paid straight into a euro account at a bank in Malta: the Social Security Administration routes international direct deposits to Malta through the Federal Reserve Bank of Kansas City and has a sign-up form for Malta (SSA-1199-OP16). Payments go only to EUR accounts.
Will my UK State Pension go up each year in Malta?
It can be paid into a bank in Malta or a UK account. Malta is in the European Economic Area, so the pension rises every year as it would in the UK.
Is my pension taxed in Malta?
Yes, if you bring it into Malta. On the Global Residence Programme a foreign pension received in Malta is taxed at a flat 15%, and you pay at least €15,000 a year whatever you bring in. Foreign income kept abroad is not taxed in Malta. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can US Social Security be deposited to a bank in Malta?
Yes. The Social Security Administration pays by international direct deposit into euro accounts at banks in Malta, with a sign-up form for Malta (SSA-1199-OP16). It pays only into EUR accounts.
How is a foreign pension taxed in Malta?
On the Global Residence Programme, the foreign pension and other foreign income you bring into Malta is taxed at a flat 15%, with a minimum of €15,000 a year. A resident who is not domiciled in Malta is not taxed on foreign income kept abroad.
What tax does the Malta Retirement Programme charge?
15% on foreign income received in Malta, with at least €7,500 a year plus €500 for each dependant. The whole pension must be received in Malta and make up at least 75% of your chargeable income; the programme serves EU, EEA and Swiss citizens.
