A flat rate of 15% is chargeable on all income (less personal allowances) received in, or remitted to, Malta from either local or foreign sources. This is subject to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
In the absence of significant remittances of income, it may be more feasible to opt for the Ordinary Residence Scheme which imposes no minimum tax liability.
1. Low flat tax rate & minimum tax
A flat rate of 15% is chargeable on all income (less personal allowances) received in, or remitted to, Malta from either local or foreign sources. This is subject to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
In the absence of significant remittances of income, it may be more feasible to opt for the Ordinary Residence Scheme which imposes no minimum tax liability.
- See Taxation of Pensions for Non-Doms
2. Remittance only basis of tax
Non-domiciled foreign holders of a PR permit in Malta are taxable on a remittance basis only on income and not foreign source capital remitted to Malta and on income and capital gains arising in Malta.
3. Capital gains
Income not remitted (transferred) to the PR’s Malta bank account and capital gains (whether remitted or otherwise) fall outside the scope of Maltese tax. Capital/savings remitted to Malta also fall outside the scope of Malta tax.
4 . Double taxation relief
Malta enjoys 43 double tax treaties, persons who take up residence in Malta can receive their pensions in Malta free of tax at source and subject to a mere 15%.
Overseas capital funds invested locally are of course only taxed on any interest or dividends generated thereon, again at a 15% flat rate. Permanent residents also benefit from double taxation agreements existing between Malta, most European countries, Canada, Australia and the USA, ensuring that tax is never paid twice upon the same income.
5. Tax Payments & Deadlines
First payment of Tax: For applications filed after 1st May 2004, the minimum tax of EUR4,230 (approx. US$4,900) is payable provisionally in advance to the Commissioner for Inland Revenue within 30 days of approval. The Residence Certificate will only be issued upon presentation of a tax receipt confirming payment.
Second payment of Tax: This will be due after the second year of residence. If the application is not accepted, the tax will be refunded within fourteen days. The tax so paid in advance will be credited to the applicant’s tax liability for the year in which residence is actually taken up.
- See Malta's Double Tax Treaty Network
6. Full Exemption from Customs Duty/VAT
Your used household and personal effects, furniture and other domestic articles (excluding firearms and weapons of all kinds) may be imported free of import duty if imported within six months of your arrival in Malta to take up residence. In such cases import licenses are not required.
Click here for more info about importation of motor vehicles.7. Other tax considerations
•No inheritance tax
•No estate duty
•No wealth tax
•No municipal taxes
•No rates
•Stamp duty is payable by the acquirer on the transfer of immovable property situated in Malta and transfers of shares in Maltese companies (including transfers on death).
•Exemptions from stamp duty may be available on the transfer of shares in certain Maltese companies, e.g. if the company is listed on the Malta Stock Exchange or if the vast majority (at least 90%) of its business interests are outside Malta.
A flat rate of 15% is chargeable on all income (less personal allowances) received in, or remitted to, Malta from either local or foreign sources. This is subject to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
In the absence of significant remittances of income, it may be more feasible to opt for the Ordinary Residence Scheme which imposes no minimum tax liability.
1. Low flat tax rate & minimum tax
A flat rate of 15% is chargeable on all income (less personal allowances) received in, or remitted to, Malta from either local or foreign sources. This is subject to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
In the absence of significant remittances of income, it may be more feasible to opt for the Ordinary Residence Scheme which imposes no minimum tax liability.
- See Taxation of Pensions for Non-Doms
2. Remittance only basis of tax
Non-domiciled foreign holders of a PR permit in Malta are taxable on a remittance basis only on income and not foreign source capital remitted to Malta and on income and capital gains arising in Malta.
3. Capital gains
Income not remitted (transferred) to the PR’s Malta bank account and capital gains (whether remitted or otherwise) fall outside the scope of Maltese tax. Capital/savings remitted to Malta also fall outside the scope of Malta tax.
4 . Double taxation relief
Malta enjoys 43 double tax treaties, persons who take up residence in Malta can receive their pensions in Malta free of tax at source and subject to a mere 15%.
Overseas capital funds invested locally are of course only taxed on any interest or dividends generated thereon, again at a 15% flat rate. Permanent residents also benefit from double taxation agreements existing between Malta, most European countries, Canada, Australia and the USA, ensuring that tax is never paid twice upon the same income.
5. Tax Payments & Deadlines
First payment of Tax: For applications filed after 1st May 2004, the minimum tax of EUR4,230 (approx. US$4,900) is payable provisionally in advance to the Commissioner for Inland Revenue within 30 days of approval. The Residence Certificate will only be issued upon presentation of a tax receipt confirming payment.
Second payment of Tax: This will be due after the second year of residence. If the application is not accepted, the tax will be refunded within fourteen days. The tax so paid in advance will be credited to the applicant’s tax liability for the year in which residence is actually taken up.
- See Malta's Double Tax Treaty Network
6. Full Exemption from Customs Duty/VAT
Your used household and personal effects, furniture and other domestic articles (excluding firearms and weapons of all kinds) may be imported free of import duty if imported within six months of your arrival in Malta to take up residence. In such cases import licenses are not required.
Click here for more info about importation of motor vehicles.7. Other tax considerations
•No inheritance tax
•No estate duty
•No wealth tax
•No municipal taxes
•No rates
•Stamp duty is payable by the acquirer on the transfer of immovable property situated in Malta and transfers of shares in Maltese companies (including transfers on death).
•Exemptions from stamp duty may be available on the transfer of shares in certain Maltese companies, e.g. if the company is listed on the Malta Stock Exchange or if the vast majority (at least 90%) of its business interests are outside Malta.