Taxation in Malta

General information, not individual tax advice. Rates are read from the consolidated Acts on the date shown; the Commissioner for Revenue publishes official guidance and the Acts are amended yearly by the Budget Measures Implementation Act.

Personal income tax

Residents are taxed on worldwide income if domiciled in Malta, and on Malta-source income plus foreign income remitted to Malta if resident but not domiciled. Rates are progressive, set in article 56 of the Income Tax Act (Cap. 123). For year of assessment 2026 (basis year 2025): single 0% to €12,000, 15% to €16,000, 25% to €60,000, 35% above; married (joint) 0% to €15,000, 15% to €23,000, 25% to €60,000, 35% above; parent 0% to €13,000, 15% to €17,500, 25% to €60,000, 35% above. Returns are filed by June for the previous calendar year; employees are taxed at source.

Corporate tax

Companies pay 35% on chargeable income; Malta's full imputation system allows shareholders refunds on distributed profits. Specific regimes apply to shipping, aviation and others.

VAT

Standard rate 18% (Cap. 406), with reduced rates for listed supplies.

Social security

Class 1 (employed) contributions are 10% from the employee and 10% from the employer on basic pay up to a ceiling; Class 2 (self-employed) is 15% of annual net income within limits (Cap. 318).

Property taxes and duty

Duty on documents of 5% on transfers of immovable property, with the first €200,000 exempt for first-time buyers of a home (Cap. 364); property transfer tax on sale is generally a final tax of 8% of the value, with exemptions and lower rates in defined cases; there is no annual property tax.

Capital gains

Gains on securities and certain assets are taxed as income; gains on immovable property fall under the property transfer tax.

Tax residency

Residence is generally established by presence in Malta for more than 183 days in a year or by ordinary residence; domicile depends on origin and intention. Non-residents are taxed only on Malta-source income. Double taxation agreements with over 70 countries apply.

Official schemes

Programmes with special tax treatment include the Global Residence Programme, the Retirement Programme, the Highly Qualified Persons rules and the Nomad Residence Permit; MPRP holders are taxed under the ordinary rules according to their residence and domicile status. Each has its own conditions and minimum tax.

Obligations

Register for a tax number, file annual returns, keep records, and, if running a business, register for VAT and social security. Penalties apply for late filing.