Malta Personal Taxation

Malta Personal Taxation image


Malta has been regarded an attractive relocation destination for many years. The Maltese Islands are renowned for their Mediterranean climate, beautiful landscape, rich culture and historical landmarks. Malta has been a member of the EU since 2004 and a member of the Schengen Area since 2007. Therefore, relocating to Malta also provides easy, visa-free access to numerous European destinations.

Malta is also a great place for doing business. During the last couple of decades it has enjoyed political stability and a long period of uninterrupted economic growth. Moreover, Malta offers a transparent administrative and legal framework, low incorporation and maintenance costs for companies and a highly efficient, EU-approved tax regime.






Country Highlights

TAX SYSTEM: EU Approved EU: Member of the EU & Eurozone
DOUBLE TAX TREATIES: Broad network of over 70 signed DTTs                     SCHENGEN STATUS: Full Member
TOTAL AREA: 442,6 km2

SPECIFIC TAX RATES: For beneficiaries of TRP or GRP programmes

REMITTANCE AND SOURCE BASIS OF TAXATION: For resident, non-domiciled individuals

 

 


 


Legal Basis

The general rules regarding taxation of individuals in Malta are laid down in the Income Tax Act (the “ITA”). Malta also has a broad network of over 70 double taxation treaties.

In terms of the provisions of the ITA, the connecting factors that give rise to taxation of an individual in Malta are: tax residence and domicile. Individuals who are neither resident nor domiciled in Malta are taxed only on a source basis.


Benefits

  • EU Jurisdiction
  • Relief from double taxation
  • Remittance basis of taxation for resident non-dom individuals
  • Foreign source capital gains remitted, free of tax


Eligibility

Individuals who are both resident and domiciled in Malta are taxed in Malta on their worldwide income and chargeable gains. This means that income and gains are taxable in Malta regardless of whether they arise and whether they are brought to Malta or not.

On the other hand, individuals who are resident but not domiciled in Malta are taxable in Malta on a remittance and source basis of taxation. This means that they are taxable in Malta only on:

  • local source income
  • local source chargeable capital gains and
  • foreign source income which is remitted to Malta.

An individual who is resident but not domiciled in Malta will therefore not be subject to tax in Malta on any foreign source capital gains (even if these are remitted to Malta).

Individuals who are neither tax resident nor domiciled in Malta are only subject to tax in Malta on income or capital gains arising in Malta.


Process & Timeline




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