Verified Facts
The tax rates in Malta range from 0% to 35% for personal income tax, with a corporate tax rate of 35% and a standard VAT rate of 18%, making it an attractive destination for both individuals and businesses.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Malta operates a territorial taxation system, where individuals are taxed on their income earned in Malta, as well as on foreign-sourced income that is remitted to Malta. However, there are exceptions for certain types of foreign-sourced income, such as dividends, interest, and royalties, which are exempt from tax if they are not remitted to Malta. To be considered a tax resident in Malta, an individual must meet certain residency rules, including spending at least 183 days in Malta in a calendar year, or having a permanent home in Malta that is available for their use at all times.
The tax system in Malta is designed to attract foreign investment and talent, with a range of incentives and exemptions available to both individuals and businesses. Malta is a member of the European Union and has a double taxation treaty network with over 70 countries, which helps to prevent double taxation and fiscal evasion. The Maltese tax authorities also offer a range of tax compliance services, including online filing and payment systems, to make it easier for taxpayers to meet their obligations.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 9,100 | 0% |
| 9,101 - 14,400 | 15% |
| 14,401 - 19,300 | 25% |
| 19,301 - 60,000 | 30% |
| 60,001 and over | 35% |
| The Maltese tax system allows for various deductions and allowances, including a personal allowance of EUR 9,100, as well as deductions for mortgage interest, charitable donations, and certain types of investment income. Taxpayers are required to file their tax returns online by the end of June each year, and must pay any tax due by the same date. Tax credits are also available for certain types of foreign tax paid, which can help to reduce the overall tax liability. |
Corporate & Business Tax
- The corporate tax rate in Malta is 35%, but this can be reduced to 5% or 10% for certain types of companies, such as those involved in financial services or gaming.
- Small business incentives are available, including a reduced tax rate of 20% for companies with a taxable income of less than EUR 14,000.
- Malta has several free zones, including the Malta Freeport and the Kordin Business Park, which offer a range of tax and other incentives to companies that locate there.
- Companies are required to register with the Maltese tax authorities within 30 days of commencing business, and must file their tax returns online by the end of October each year.
- Value Added Tax (VAT) registration is also required for companies with an annual turnover of more than EUR 14,000.
VAT / Sales Tax
- The standard VAT rate in Malta is 18%, but there are reduced rates of 5% and 7% for certain types of goods and services, such as food and hotel accommodation.
- Exemptions are available for certain types of goods and services, including financial services, education, and healthcare.
- A tourist refund scheme is available for non-EU visitors, which allows them to claim a refund of VAT paid on certain types of goods.
- VAT returns must be filed online by the 15th of the month following the end of the VAT period, which is typically quarterly.
For Expats & Foreign Workers
- Tax residency rules apply to foreign workers who spend more than 183 days in Malta in a calendar year, or who have a permanent home in Malta that is available for their use at all times.
- Malta has a double taxation treaty network with over 70 countries, which helps to prevent double taxation and fiscal evasion.
- Social security contributions are payable by both employers and employees, and are used to fund a range of social security benefits, including pensions and healthcare.
- Remittance rules apply to foreign-sourced income that is remitted to Malta, which may be subject to tax at a rate of 0% or 35%, depending on the type of income and the individual's tax status.
- Special tax regimes are available for certain types of foreign workers, including Highly Qualified Persons and Global Residence Program participants, which offer a range of tax and other incentives.
- Tax compliance is essential for foreign workers, who must file their tax returns online by the end of June each year, and must pay any tax due by the same date.
Crypto & Investment Income
- Investment income, including dividends, interest, and royalties, is subject to tax at a rate of 0% or 35%, depending on the type of income and the individual's tax status.
- Cryptocurrency is considered a trading asset for tax purposes, and gains or losses on cryptocurrency transactions are subject to tax at a rate of 0% or 35%, depending on the individual's tax status.
- Tax credits are available for certain types of foreign tax paid on investment income, which can help to reduce the overall tax liability.
- Wealth tax is not payable in Malta, but capital gains tax may be payable on certain types of assets, including real estate and securities.