European citizens intending to retire in Malta can benefit from an advantageous tax scheme but first have to prove they are not “a threat” to the health service here.

Announcing the new scheme, the Finance Ministry said retirees have to prove they are in possession of health insurance or are covered by the EU’s health card.

The scheme, also open to residents from the European Economic Area and Swiss nationals, allows them to retain a fixed 15 per cent tax rate with a minimum tax liability of €7,500 and an extra €500 for a dependent.

Retirees have to receive a recognised pension and may hold a non-executive post on the board of a company registered in Malta.

“Any EU citizen that proves he is not a threat to public health, public policy or public security has a right to live in Malta,” the ministry said as it laid out the minimum requirements.

A novelty in the programme is that the requirements for Gozo are lower than the ones for Malta.

Retirees have to spend a minimum of €275,000 on a property in Malta but €250,000 in Gozo, or if renting the minimum amount must be €9,600 for Malta and €8,750 for Gozo,

They must also spend a minimum of 90 days on the islands every year.

The entire pension would have to be remitted and taxed in Malta and 75 per cent of the taxable income has to come from a pension or similar income.

Retirees have to first go through a rigorous selection process which will be covered by a €2,500 application fee.