Minimum tax 5000 eur for non-dom residents

Pejass · 2021-05-18T14:27:02+02:00

Understand the minimum €5000 tax for non-dom residents in Malta. Discover how worldwide income, including capital gains and rental income, is calculated.

Pejass New member

Member since 12 April 2021

PejassNew member18 May 2021 12:27:02

A non-dom ordinary resident is in general only taxed on income remitted to Malta. The exception is a lump sum of 5000 eur if the worldwide income is 35,000+ eur. Zero tax if less than 35k income.

How exactly is the worldwide income calculated? Do capital gains from sales of stocks count? How about rental income from immovable property in another country?

I have rental income from another EU country. Enough to reach the 35k threshold. The tax treaty between Malta and my other country specifies that rent from real estate is only taxed in that other country. Will Malta anyway count it toward those 35k?

timcob Active member

Member since 02 March 2019

timcobActive member18 May 2021 12:54:07

Capital gains is not included in the 35k income.

If you are remitting the rental income to malta and claiming relief of taxes based on the double taxation agreement then this tax counts towards the 5000 minimum.

Details on the maltese government website.

See section 6.2