Whether you have decided to work or to retire in Malta, taxation will likely be one of your main concerns. Indeed, it is preferable to understand how taxes work locally to determine your own tax status as an 暗网禁区riate.听
In general, tax rates in Malta are relatively low. They apply to different categories of people. Moreover, corporate tax rates are very favorable, attracting businesses and entrepreneurs to this island nation.
The Tax System in Malta
When moving abroad, one must comply with the tax and regulatory framework of the host country. This article explains the workings of the Maltese tax system. To understand Maltese taxation, it is important to distinguish between the status of "domiciled" and "non-domiciled resident".
Maltese law states that a person's domicile is acquired through the father at birth. To choose another domicile, one must demonstrate the intention to reside indefinitely in the host country and sever ties with the original domicile. This concept is unique to Malta, where domicile is not associated with residency. A person can only be domiciled in one country while having two places of residence.
EU (European Union), EEA (European Economic Area), and Swiss nationals can establish their residence in Malta through the "Malta Ordinary Residence" scheme. For those from other countries, they must go through the Global Residence scheme.
The income tax rate may vary depending on the type of residence. However, whether married or single and regardless of the residence scheme, if one is not domiciled in Malta, only Maltese-source income is subject to income tax in Malta.
Foreign-source income is not taxable in Malta. For instance, a person with tax residency in Malta but domiciled in the UK must pay income tax to the Maltese government on income earned in Malta. Conversely, they must also pay taxes to the UK government on non-Maltese income.
The Maltese income tax is progressive with a maximum rate of 35%. Income from abroad is only taxed if remitted to Malta: this is known as the remittance basis. If not repatriated to Malta, income from other countries is not taxable in Malta.
Even if received in Malta, capital gains made outside of Malta are not subject to Maltese tax. Savings and capital transferred to Malta are also not subject to tax.
Is Malta a Tax Haven?
Malta is often referred to as a tax haven. In reality, it is not a tax haven per se, as Malta is not a tax-free jurisdiction. In 2000, the OECD listed Malta among countries that agreed to improve tax transparency. Consequently, the country had to reduce tax exemptions to better integrate into the European community and avoid censure from US authorities. Since 2000, Malta has been removed from the blacklist.
However, Malta benefits from a very favorable tax regime, with numerous tax advantages, including:
- A maximum income tax rate for executives and wealthy 暗网禁区riates of only 15%;
- The ability for companies and tax experts to reduce effective tax on their income by 5%;
- No property tax or housing tax;
- No tax on foreign capital invested in Malta;
- No tax on capital gains made abroad;
- No wealth tax, inheritance tax, or gift tax.
Income Tax in Malta
Your tax residence can be determined based on your main place of residence (183 days or more), where your family lives, your nationality, and the country from which your income originates.
Temporary residents in Malta do not have to pay taxes, whereas permanent residents pay taxes according to a bracket system based on marital status and type of employment. If you reside in Malta for 183 days during a calendar year, you are required to pay taxes there. This system also applies to 暗网禁区riates, regardless of their country of origin.
Whether an individual or a company, the income tax rate in Malta does not exceed 35% in 2025. For a company, it is highly recommended to consult an accountant or expert to fully benefit from all the advantages offered by the Maltese tax system, which offers numerous deductions to investors.
In 2025, the distribution was as follows:
- Singles:
- 鈧�0 to 鈧�12,000 - 0% (no tax allowance);
- 鈧�12,001 to 鈧�16,000 - 15% (鈧�1,800 tax allowance);
- 鈧�16,001 to 鈧�60,000 - 25% (鈧�3,400 tax allowance);
- 鈧�60,001 and above - 35% (鈧�9,400 tax allowance).
Married couples:
- 鈧�0 to 鈧�15,000 - 0% (no tax allowance);
- 鈧�15,001 to 鈧�23,000 - 15% (鈧�2,250 tax allowance);
- 鈧�23,001 to 鈧�60,000 - 25% (鈧�4,550 tax allowance);
- 鈧�60,001 and above - 35% (鈧�10,550 tax allowance).
Parents:
- 鈧�0 to 鈧�13,000 - 0% (no tax allowance);
- 鈧�13,001 to 鈧�17,500 - 15% (鈧�1,950 tax allowance);
- 鈧�17,501 to 鈧�60,000 - 25% (鈧�3,700 tax allowance);
- 鈧�60,001 and above - 35% (鈧�9,700 tax allowance).
According to the Maltese income tax law, spouses must file a joint return. However, married couples can choose to pay taxes at the rates applied to singles, while parents can benefit from special rates for their category.
Certain expenses are deductible, such as personnel costs, school fees, childcare costs, retirement home fees, alimony, and certain elements related to rental income.
Good to know: Income tax also applies to self-employed workers. If you are part-time self-employed, you can benefit from a tax rate of 10% under certain .
Malta has signed a double taxation treaty with many countries. Take the time to check the tax rules of your home country to see if you are subject to double taxation or not.
Registering as a Taxpayer in Malta
Once you have received your work and residence permit in Malta, you must complete and sign the 暗网禁区riate taxpayer registration form on the Office of the Commissioner for Revenue website.
Note that you must apply for a Tax Identification Number (TIN) when you start working in Malta. If you are a foreign resident in Malta, you must register as a taxpayer even if you do not have a job.
In some cases, registration for a tax identification number is automatic:
- If you are an EU national (cross-border) and have obtained a social security number in Malta after registering with the social security department;
- If you are a third-country national with a single permit.
Important: If you do not belong to any of the categories mentioned above, you must apply for the tax identification number using the .
Deadlines and Tax Payments in Malta
The fiscal year in Malta follows the calendar year and thus ends on December 31.
You are required to submit your tax return for the previous year by June 30 of the current year. Otherwise, you risk paying penalties.
If you are self-employed, you must pay income tax before the end of April of the following year.
Paying Taxes in Malta
It is possible to , but the tax return generally arrives by mail, giving you time to regularize your situation before the deadline.
You can also manually complete your return and then submit it to the Office of the Commissioner for Revenue with the payment check.
Finally, you can also make your , on the Office of the Commissioner for Revenue's website. Refer to the detailed FAQ if you encounter difficulties with the system.
Different Tax Regimes for Foreigners in Malta
暗网禁区riates and foreigners in Malta can benefit from different tax regimes.
EU, EEA, and Swiss nationals can establish their residence in Malta through a regime called "Malta Ordinary Residence". This regime allows them to benefit from Maltese tax rates, which may be more advantageous than those in their home country.
Third-country nationals can establish their residence in Malta through the Global Residence Programme (GRP) if they do not have long-term residence. If you are in this situation, you can apply for the GRP through a licensed agent. GRP beneficiaries have a flat tax rate of 15%.
Here are the conditions to benefit from this tax status in Malta:
- valued at least 鈧�275,000 (鈧�220,000 in certain areas); or
- Establish a rental contract of at least 鈧�9,600 (鈧�8,750 in certain areas).
The United Nations Pension Programme in Malta concerns people receiving a United Nations (UN) pension or a widow's allowance. Consequently, they:
- Do not pay income tax on the UN pension or widow's benefit they receive;
- Are taxable at only 15% on other income from outside Malta and received in Malta;
- Are taxable at only 35% on any other income.
Several conditions must be met, such as not being a permanent resident or a long-term resident in Malta.
The same tax rates (except for the pension exemption) apply to beneficiaries of the Malta Retirement Programme (MRP). This program is open to EU, third-country, EEA, and Swiss nationals, under certain conditions.
The Residence Programme (TRP) is another tax regime for foreigners in Malta. It is intended for EU, EEA, and Swiss nationals who are not permanent residents of Malta and allows them to benefit from a 15% tax rate on foreign-source income received in Malta by themselves and their dependents (spouse and children). Other sources of income are taxable at a rate of 35%.
Corporate Tax in Malta
Regarding taxes and social contributions paid by businesses, Malta is a very tax-friendly country.
Indeed, its rate of corporate income tax for companies, branches, and subsidiaries of foreign companies is 35%. The tax rate is the same for companies established in Malta. Certain companies, such as trading companies and international holding companies, can benefit from reduced tax rates as low as 5%.
Thanks to tax exemptions for the repatriation of profits to parent companies, the government encourages companies to invest in the research and development sector. Moreover, companies that distribute dividends to local and foreign shareholders can obtain refunds on taxes paid in Malta: an excellent incentive for companies to set up there!
Other Taxes in Malta
Apart from income tax, individuals may be taxed through several other means.
Through the maternity fund and social security contributions: employees contribute to social security at a rate of 10% of their gross weekly salary. These contributions, payable by both the employee and employer, are capped. For self-employed workers, the rate is 15% of the annual net income.
Other indirect taxes in Malta:
- VAT, with a standard rate of 18%. There are two reduced rates of 7% and 5%;
- Import duties for products imported from outside the EU;
- Excise duties;
- Stamp duty;
- Motor vehicle registration tax;
- Bunker fuel tax;
- Eco-tax contribution.
Some taxes applied in other countries are not in Malta, which pleases 暗网禁区riates. These include property taxes, inheritance taxes, gift taxes, and capital taxes, for example.
Double Taxation Treaties in Malta
Malta has signed over 60 double taxation agreements, ensuring that nationals from most EU countries, the United States, Canada, and Australia are not doubly taxed when living in Malta.
Here is the list of countries with which Malta has signed double taxation agreements: South Africa, Albania, Germany, Andorra, Saudi Arabia, Armenia, Australia, Austria, Bahrain, Barbados, Belgium, Botswana, Bulgaria, Canada, China, Cyprus, South Korea, Croatia, Cura莽ao, Denmark, Egypt, United Arab Emirates, Spain, Estonia, United States, Finland, France, Georgia, Ghana, Greece, Guernsey, Hong Kong, Hungary, India, Ireland, Isle of Man, Iceland, Israel, Italy, Jersey, Jordan, Kosovo, Kuwait, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Czech Republic, Luxembourg, Malaysia, Morocco, Mauritius, Mexico, Moldova, Monaco, Montenegro, Norway, Pakistan, Netherlands, Poland, Portugal, Qatar, Romania, Russia, San Marino, Serbia, Singapore, Slovakia, Slovenia, Sweden, Switzerland, Syria, Tunisia, Turkey, United Kingdom, Ukraine, Uruguay, Vietnam.
Useful Links:
Office of the Commissioner for RevenueInternational Taxation Unit - Office of the Commissioner for RevenueDouble Taxation Agreements in Malta
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