Favourable Tax system for Insurance Expatriates

Dr. Jean-Philippe Chetcuti | 15 Jul 2019

Chetcuti Cauchi Lawyers
The Maltese tax system favours insurance expatriates by extending generous exemptions from tax for the period from the year preceding the first year of assessment in which he is first liable to tax under the provisions of this Act up to and including the year preceding the tenth year of assessment.
Insurance expats are exempt from tax on income relating to the following expenditure for the expatriate and/or his immediate family that is incurred by the insurance company of which he is an employee or to which he provides insurance services, namely:
(a) removal costs in respect of relocation to or from Malta;
(b) accommodation expenses incurred in Malta;
(c) travel costs in respect of visits by the investment services expatriate or insurance expatriate and his immediate family to or from Malta;
(d) provision of a car for the use of the investment services expatriate or insurance expatriate in Malta;
(e) a subvention (subsidy) of not more than six hundred euro (600) per calendar month;
(f) medical expenses and medical insurance; and
(g) school fees in respect of the children of the investment services expatriate or insurance expatriate.
An insurance services expatriate is also treated as not resident in Malta for the purposes of article 12(1)(c).
Essentially, the above favourable tax treatment consists in:
  • an exemption from taxation of fringe benefits and
  • an extension of the benefits of non-residence to insurance expatriates as if they were non-resident.

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Dr Priscilla Mifsud Parker

Senior Partner - Corporate, Tax & Immigration

+356 22056122

Dr Jean-Philippe Chetcuti

Senior Partner, Tax & Immigration

+356 22056111

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