Malta Taxes 2026: Complete Guide

Malta’s tax system is based on several key principles: tax residence, domicile status, and the origin of income. Individuals who become tax residents may benefit from the remittance basis, under which foreign income is taxed only if it is transferred to Malta, while foreign capital gains are generally not taxed. At the same time, income generated in Malta is subject to standard taxation regardless of residency status.

In 2026, the system includes progressive personal income tax rates up to 35%, a 35% nominal corporate tax with refund mechanisms, a 15% flat rate for certain rental income, and no annual property or inheritance tax. This guide explains how Malta’s tax framework works in practice, including residency rules, tax rates for individuals and businesses, special regimes for new residents, and key compliance requirements.

Key Takeaways

• Tax residence: Individuals who spend 183+ days per year in Malta are generally considered tax residents.
• Non-Dom advantage: Foreign income is usually taxed only if remitted to Malta, while foreign capital gains remain tax-free.
• Income tax rates: Personal income tax ranges from 0% to 35% depending on income and taxpayer category.
• No wealth taxes: Malta has no annual property tax and no inheritance tax.
• Corporate taxation: The 35% nominal corporate tax can be reduced through Malta’s refund system, lowering the effective rate.
• Special regimes: Programs for Non-Doms, global residents, retirees, and digital nomads provide additional tax planning opportunities.

How Malta’s Tax System Works

In Malta, taxes are paid by individuals and businesses. Taxpayer status may be resident or non-resident, and this determines which income is included in the tax base and which rates apply.

Residence and Domicile

Tax Residents

Residents include those who spend at least 183 days a year in the country. For companies, resident status arises if they are registered in Malta or managed from the country. Residents are fully subject to local tax legislation and may use the available benefits and deductions.

Non-Residents

If a person spends less than 183 days in Malta, they are considered a non-resident. In this case, only income arising in the country is taxed: salary, business profit, income from the sale of assets, or real estate located in Malta.

Domicile

Domicile reflects a person’s long-term connection with a particular country. It affects which income is subject to taxation.

A resident with Maltese domicile pays tax on all income — both local and foreign. A resident without Maltese domicile (Non-Dom) pays tax only on income arising in Malta. To obtain domicile in Malta, it is necessary to confirm the intention to make the country a permanent place of residence: purchase housing and not reside in another country for more than 183 days a year.

Remittance Basis of Taxation

Malta applies a tax system in which the origin of income and whether the funds are brought into the country play an important role. For residents without Maltese domicile, the remittance basis applies: tax is paid only on income from foreign sources that is remitted to Malta or spent in Malta (except capital gains — the rate for them is 0%, even if remitted).

Income earned in Malta is taxed in full regardless of status — resident, non-resident, or Non-Dom. Such income includes salary, business profit, rental income, and income from the sale of assets located in Malta.

Non-residents pay tax only on income arising in Malta, while foreign income of non-residents is not taken into account.

Taxes for Individuals

Income Tax

Malta applies a progressive income tax scale. Rates depend on the taxpayer category and income level.

Features for Non-Doms

• Foreign income is taxed only if remitted to Malta.
• Foreign capital gains — 0%, even if remitted.
• Malta-source income is taxed at standard rates.

Taxes on Dividends, Interest, and Royalties

Dividends, interest, and royalties from Maltese sources are taxed at standard income tax rates:

• Foreign dividends and interest for Non-Doms are taxed only if remitted to Malta.
• For non-residents, tax is withheld only on income arising in Malta.
• Dividends from foreign companies received into foreign accounts are not taxed.

Social Security Contributions

Social security contributions are mandatory payments that provide access to the social insurance system: healthcare, pensions, and benefits. They are paid by employees, employers, and the self-employed. The amount depends on income and employment category.

Capital Gains Tax (CGT)

This tax is levied on the sale of assets whose value has increased (the difference between the purchase price and the sale price). Separate rates apply to different types of assets. For residents without Maltese domicile, foreign capital gains are not taxed.

Real estate:

• 8% of the sale price
• 5% — if the property has been owned for more than 5 years
• 2% — for old properties (before 2004)
• 0% — on the sale of a primary residence after 3 years of residence

Securities and company shares — 35%.

Movable property (cars, furniture, equipment), personal belongings, and cryptocurrency are not subject to CGT. Cryptocurrency is considered movable property: tax arises only if the activity is of a business nature — for example, high-frequency trading.

Property Transfer Tax (PTT)

This is a separate regime applied instead of capital gains tax (CGT) when real estate is sold. The tax is calculated as a percentage of the transaction value. The rate depends on the period of ownership and the property’s status.

• 8% of the sale price — standard
• 5% — if the property has been owned for more than 5 years
• 7% — for property inherited before 25.01.1992
• 10% — for property purchased before 1.01.2004

In practice, Property Transfer Tax (PTT) is almost always applied to real estate, while CGT rates for real estate have been retained at the same levels so as not to confuse the market.

Stamp Duty

Stamp duty is charged on the purchase of real estate, transfer of assets, or gifts. This is a one-time tax calculated as a percentage of the value of the transferred property. Preferential rates are provided for residents purchasing their first home.

Purchase of Real Estate

• 5% — standard;
• 0% on the first €200,000 — resident’s first home;
• 3.5% on the first €200,000 — second home.

Transfer of Assets

• 1–2% — within the family;
• 2% — shares;
• 5% — shares of companies owning real estate.

Property Tax

There is no annual tax on ownership of real estate or other assets in Malta.

Inheritance and Gift Tax

There is no inheritance or gift tax. Only stamp duty applies to the transfer of real estate.

Taxes for Business

Corporate Tax

Corporate tax in Malta is charged on company profits earned from Maltese sources or remitted to Malta. The nominal rate is high, but the effective burden is lower due to the refund system:

• 35% — standard corporate tax rate
• 0% — for profits earned abroad and not remitted to Malta (for companies with Non-Dom shareholders)
• 5% effective rate — after a 6/7 tax refund to shareholders (main refund regime)
• 10% effective rate — 5/7 refund for passive income (interest, royalties)
• 6.25% effective rate — 2/3 refund when using the foreign tax credit

Foreign Tax Credit (FTC) is a mechanism that allows a Maltese company to reduce its corporate tax if it has already paid tax in another country on the same income. Example: a company received income abroad and paid 10% withholding tax in its jurisdiction. In Malta, the nominal rate is 35%; the company may credit that 10% and will effectively pay only 25%.

Rental Income Tax

Income from letting residential property is taxed at a fixed rate of 15%. This rate applies at the owner’s option and replaces the progressive scale.

For non-residents, tax is levied only on rental income from property located in Malta. The lease agreement must be registered with the Housing Authority.

VAT

VAT is an indirect tax included in the price of goods and services. It is paid by companies, but individuals effectively bear the cost as consumers. Malta has a standard rate and several reduced rates for certain categories of goods.

Malta’s VAT rate is one of the lowest in the EU (except Luxembourg with 17%).

• 18% — standard
• 12% — management and custody of securities and credits, leasing of pleasure boats, wellness services (body care)
• 7% — for tourism accommodation and the use of sports facilities
• 5% — books, medicines, supply of electricity, small repairs, home care services (nannies, carers, housekeepers), medical accessories and goods for persons with disabilities, printed materials, confectionery, museums, and theatres
• 0% — exports, international transport, passenger transport and transportation, food, pharmaceuticals

Taxes for the Self-Employed

From 1 January 2022, a preferential tax rate of 10% applies to self-employed individuals working part-time, but it can only be used if a number of conditions are met:

• Have a main status: be employed full-time, be a pensioner, or be a full-time student.
• Register the side activity as part-time work.
• Employ no more than 2 employees (they must also work part-time).
• Keep proper records of income and expenses.
• Not perform the side activity for their main employer.
• Register for VAT if required by law.
• Pay tax using form TA22.

The maximum payment amount per year is €1,200.

Benefits for Digital Nomads

The Nomad Residence Permit is a residence permit for specialists working remotely. The status is suitable for those who work remotely for a foreign company with income from €3,500 per month.

Holders of the Nomad Residence Permit are exempt from tax on foreign income during the first 12 months of residence. After this period, a fixed rate of 10% applies to foreign income that is considered received in Malta.

The minimum tax for foreigners who are tax residents of Malta but do not have domicile is €5,000 per year. Two conditions must be met:

• Not have other taxable income in Malta;
• Receive combined foreign income (together with spouse) of at least €35,000 per year.

Special Tax Regimes

A number of programs apply to individuals and their families moving to Malta or retiring there. These programs provide tax benefits, which mainly consist of the right to pay tax at a fixed rate of 15% on foreign income remitted to Malta. The minimum tax amount is €15,000 per year.

Any other income (for example, income earned within the country) is taxed at a fixed rate of 35%.

Which Programs Does This Condition Apply To?

1. The Residence Programme (TRP) — for foreigners and their family members who are citizens of the EU, Iceland, Norway, Liechtenstein, or Switzerland, who have purchased or rented approved property in Malta, have stable income (without using social programs) and health insurance, are proficient in English or Maltese, and have no criminal record. Renting out the property is prohibited; to be officially employed in Malta, a special permit must be obtained.
2. Global Residence Programme (GRP) — for foreigners and their families from countries outside the EU, EEA, and Switzerland, who move to Malta and obtain residence on the basis of financial independence. It is necessary to buy or rent property for a certain amount, confirm stable income, and not spend more than 183 days a year in another country. Free command of the official language is also required.
3. The United Nations Pensions Programme Rules (UNPP) — for those receiving a pension, provided that the entire pension is paid in Malta and constitutes at least 75% of their taxable income. It is necessary to buy or rent property in Malta for a certain amount, obtain insurance, provide a certificate of no criminal record, and confirm free command of the official language. Foreigners with Malta permanent residence may not participate. The minimum annual tax amount is reduced to €7,500 per year + €500 for each dependant.
4. High Net Worth Individuals Rules (HNWI) — for all foreigners who own approved property in Malta (rented or owned), have insurance, no criminal record, and no permanent residence status. The minimum tax amount is increased to €20,000 per year, + €2,500 for each dependant (family member). Income earned in Malta from any kind of activity is taxed at a fixed rate of 35% on the full amount received.
5. Malta Permanent Residence Programme (MPRP) — for investors and their families investing funds in the country’s economy.

Malta Permanent Residence by Investment

The Malta Permanent Residence Programme (MPRP) allows citizens of countries outside the EU, EEA, and Switzerland to obtain permanent resident status in Malta by meeting the investment requirements. There is no need to live on the island permanently.

To obtain permanent residence, the applicant must:

• Make a contribution to a state fund and a charitable donation.
• Obtain health insurance.
• Rent or purchase real estate.

Real estate options:

• Rent for 5 years from €70,000 (from €14,000) per year, or
• Purchase from €375,000.

Mandatory payments:

• €60,000 — administrative fee;
• €2,000 — charitable donation;
• €37,000 — state fee for the main applicant.

It is necessary to confirm assets under one of the following options:

• A: €500,000 total assets, of which €150,000 liquid;
• B: €650,000 total assets, of which €75,000 liquid.

Who can be included:

• Spouse/partner
• Children under 18
• Children aged 18–28 if unmarried and dependent
• Parents and grandparents if dependent

Procedure and Timeframes

The application is submitted through a licensed agent. The check is carried out by the Residency Malta Agency. Consideration takes from 9 months. After preliminary approval, the applicant has 8 months to fulfil the investment conditions.

Advantages

• Permanent status with no renewal.
• No residence requirement.
• No language requirement.
• Parents and adult children can be included.
• After 5 years, the property can be changed to a more affordable one.

Permanent residence status simplifies obtaining a work permit.
Astons is a reliable partner for obtaining the Maltese Golden visa. We submit the application through a licensed local agent of the program, accredited with the Residency Malta Agency (licence number RES-IMMV).

Tax Filing Deadlines

Individuals file a tax return by 30 June of the year following the reporting year. Companies file within 9 months after the end of the financial year, unless other deadlines are specified in the notice from the tax authority.

A return must be filed in any case, even if there was no income in the reporting period or the tax payable is zero. This obligation applies to all tax residents and registered companies.

Penalties and Consequences of Late Filing

For late filing of a return, a fixed penalty is charged, the amount of which depends on the length of the delay.

In case of a prolonged delay, additional interest is charged on the amount of unpaid tax.

If a return is not filed for a long period of time, the tax authority may assess tax using an estimated assessment method, based on presumed income.

For companies, late filing may result in the inability to obtain Tax Clearance certificates, which complicates participation in tenders, obtaining licences, and interaction with banks.

Timely filing of returns is a mandatory condition for maintaining tax status and avoiding claims from the Maltese Tax Authority.

Conclusion

Malta’s tax system is suitable for those who want to combine transparent rules with flexible opportunities for income structuring. It is especially convenient for entrepreneurs, investors, specialists with international income, and families planning relocation. Thanks to the remittance basis, the absence of inheritance and property taxes, and the wide choice of special statuses, Malta remains one of the most attractive countries in Europe.

At the same time, it is important to take limitations into account. Income arising in Malta is taxed at standard rates, and some programs require the purchase or rental of property. The system is strict regarding proof of source of funds, filing deadlines, and compliance with remittance rules. Mistakes in determining residence or careless remittances can lead to unexpected tax liabilities.

Malta offers a balanced model: clear rules, stable regulation, and real opportunities for tax planning. With a well-structured approach, it becomes a convenient and predictable jurisdiction both for living and for managing international income.

You can learn all the details about obtaining Malta permanent residence by investment at a free consultation with Astons specialists.