Estate Living Magazine Retirement Living - Issue 40 April 2019 | Page 66

G O O D
L I F E
No work, only play: Retirees are forbidden to work, and may Travel deal: Residency means you can spend a maximum of
not be a majority shareholder or director in a locally incorporated
company. 90 out of every 180 days in any of the Schengen zone countries
offering an attractive travel benefit to SA passport holders.
Bonus ball: Mauritius is increasingly being regarded as one
of the leading African markets for foreign investors, and last
year The World Economic Forum ranked Mauritius as the most
competitive market in Africa. Tax: There is no such thing as wealth taxes, rates or council taxes
MALTA
Why Malta? Malta means sunny Mediterranean living with a
pleasant climate throughout the year. Though just 80 kilometres
south of Sicily, you won’t need to talk with your hands – as a
former British colony, English is an official language in Malta. And
happily for South Africans, drivers drive on the right side, i.e. on
the left-hand side, of the road. Healthcare is good. The ethos of
the island is encapsulated by a Maltese saying – ‘mela mela’ –
which means ‘no stress’.
in Malta. The GRP means a special tax status, qualifying residents
for a flat rate of 15% tax. The minimum tax payable annually is
EUR 15,000. There is a double tax agreement between SA and
Malta.
Bonus ball: Malta’s GDP growth remains strong. It’s a modern,
service-orientated society with ancient walled cities and
gorgeous beaches. Malta has consistently been voted best
place to retire in a number of international surveys.
TAX TIME
Says Jorine van der Merwe, tax compliant consultant at
FinGlobal:
Incentives: The country offers a few incentives for non-EU
foreigners wanting to reside in Malta, including the Maltese
Global Residence Programme (GRP) launched in 2012. To
qualify, you are required to either buy property starting at
EUR 220,000 (about R3.5 million) or rent to the value of around
EUR 800 (about R13,000) a month.
‘Before retiring abroad, South Africans must decide
whether they are going to remain a tax resident or a non-
tax resident in South Africa. Some countries have a double
tax agreement in place with South Africa to avoid any
double taxation. 
‘Whether you are a tax resident or a non-tax resident, you
will always first be taxed on your SA pension income.
‘Dividend tax will also differ depending on whether
you are a tax resident or a non-tax resident. If you are a
resident for tax in SA, you will be paying 20% withholding
tax (deducted at source) on dividends. If you are a non-
resident for tax, you are subject to a reduction in the rate in
terms of a double taxation agreement.
‘See a tax practitioner in South Africa as well as in Mauritius,
Malta and Portugal to plan ahead.’
Nia Magoulianitis-McGregor