Malta Non-Dom Taxation

Dr. Jean-Philippe Chetcuti | 06 Feb 2015

Malta NonDom Taxation

The remittance basis of taxation is the key feature of Malta Non-Dom Taxation and is outlined below.

Malta Non-Dom Status

'Domicile' is not to be confused with 'residence'.  Under the Anglo-Saxon origins of the Maltese law significance of domicile, the domicile of origin is automatically obtained at birth from the father. On completing the 18th birthday, an individual may acquire a domicile of choice, that is to say a domicile that is not dependent any longer on that of his father.

Malta Resident Status

Maltese residency may be acquired under different immigration routes as more appropriately apply to the applicant's circumstances.  EU / EEA nationals are entitled to residency under two main routes: The Residence Programme and Ordinary Residence.   Non-EU/EEA nationals are able to acquire residency under the Malta Global Residence programme.  Malta has fully implemented the Schengen Area Treaty and therefore a Maltese residence card entitles the holder to travel freely within the Schengen area for up to 90 days in any 6 month period.

Residence for tax purposes is established either on the basis of a 183 days presence within any fiscal year, or of circumstances indicating an intention to reside accordingly in Malta.

Malta Non-Dom Taxation

As a Malta resident non-dom, an individual is subject to tax on:

  • local source income, that is to say, income arising in Malta in any form.
  • local source capital gains, that is to say, gains arising from the transfer of capital assets.
  • foreign source income only to the extent remitted to Malta.

Gains on the transfer of capital items abroad do not fall within the scope of Maltese tax even if remitted partially or fully to Malta.

Malta Non-Dom Personal Taxation Advice

Our Tax Advisory practice is experienced in advising on Malta Non-Dom Taxation matters whether for private clients as well as companies registered outside Malta but resident for tax purposes in Malta, and therefore subject to the same tax system described above.  For more information on Malta Non-Dom Taxation, please do not hesitate to contact us.

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