The Maltese government is keen to encourage people from overseas to become residents in Malta. Recognising the economic and social benefits of immigration, the government offers an attractive tax structure tailored to foreign visitors from inside and outside the European Union. Overseas visitors wishing to take up residence are subject to the same levels of personal tax in Malta as Maltese nationals and therefore do not have to meet any extra minimum tax or remittance requirements. In addition there are relief schemes in place that mean foreign residents are not obliged to pay double taxes; that is, taxes both in their countries of origin and Malta. Such arrangements are negotiated with numerous countries or enacted through unilateral provisions courtesy of the Malta Tax Department.
Rates of Income Tax for Single Residents (Euros)
- 0-8,500: 0%
- 8,501-14,500: 15%
- 14,501-19,500: 25%
- 14,501+: 35%
Rates of Income Tax for Married Residents (Euros)
- 0-11,900: 0%
- 11,901-21,200: 15%
- 21,201-28,700: 25%
- 28,701+: 35%
Wealth Taxes, Real Estate Taxes, Capital Gains Tax
Personal Tax on net wealth or real estate do not form a part of the Maltese tax system, but there is a capital gains tax payable against profits from sales of immovable property. However, if you have owned your main property for a minimum of three years and you have been living there all that time, then no tax is levied on profits from its sale.
Taxation on Overseas Income
Foreign residents only have to pay tax on income from Maltese sources or overseas resources remitted to Malta, worldwide income being tax exempt. Foreign income remitted to Malta may be subject to a reduced rate of withholding tax (for example dividends, royalties or interest) or is completely exempt, such as in the case of certain capital gains and private pension schemes. Note that your liability to these taxes and entitlement to exemptions must be confirmed in the provisions of each treaty entered into by Malta.
European Union Registration Certificate
A separate article will treat the subject of application for the EU Registration Certificate and related matters for EU and non-EU nationals.
It is possible to take up residence by means other than the provisions of the Permanent Residence Scheme. EU nationals wishing to reside in Malta are obliged to register with the Immigration Office and the Tax Department. Eligibility to stay in Malta as a full-time resident is subject to one’s means being sufficient to sustain oneself, possession of health insurance cover (private or state) and having somewhere to live.
Periods of Residence
If your stay exceeds 183 days in one year, you are considered to be a resident for taxation purposes. In that case all the aforementioned liabilities and exemptions apply.
No Value Added Tax or import duties are charged on EU citizens’ household possessions.
EU citizens do not have to pay tax for registering their cars, providing they can prove they have transferred to Malta and owned their cars for at least 24 months prior to import. Cars must be imported within 12 months of establishing residence.
See our guide one how to import your car to Malta and register it.
Inheritance Tax, Capital Transfer Tax
Personal tax in Malta does not include any general categories of inheritance tax. But note that if you inherit any real estate or shares in a company mainly owning real estate, you must pay 5% tax. Inherited marketable securities, mainly shares in Maltese companies, incur a 2% tax.