Taxes in Malta are designed to attract businesses, citizens, and foreign nationals. The country has a tax system in which the more you earn, the higher your tax rate. Malta is also known for its business-friendly environment, with special tax rules for industries such as crypto. It has agreements with over 70 countries to avoid people being taxed twice. Additionally, foreign nationals can enjoy tax benefits through programs such as the Retirement Program and the Global Residence Program, making it a great place to live.
This article provides an overview of Malta’s tax system, explaining how personal income tax, corporate tax, social security, property tax, and more work in Malta. It will also explain who is considered a tax resident and what tax incentives are available for foreigners.
Taxes in Malta: Key Takeaways
- Malta taxes people and companies based on where they live and earn income. Those domiciled in Malta pay income tax on worldwide income, while non-residents are taxed only on income earned in Malta.
Personal income tax follows a progressive tax system with rates that start from 0% to yo 35% with different tax brackets for single people, married couples, and parents. - Corporate tax is a flat rate of 35%, but a tax refund system can reduce the effective rate to 5% for shareholders, and Malta does not tax foreign income unless it’s brought into the country.
- Property taxes focus on stamp duty and capital gains tax rather than annual property taxes, with special reliefs for first-time buyers and primary residences.
- Residency programmes such as the Malta Retirement Programme and the Global Residence Programme offer special tax rates for foreign residents and retirees.
How does Malta’s Tax system work?
Malta’s taxes are mainly handled by two bodies. The Ministry for Finance and Employment, which is responsible for the fiscal policy, prepares the annual budgets and proposes tax laws to the finance minister. The Malta Tax and Customs Administration implements these laws by collecting taxes and making sure the country follows all tax laws. Therefore, you are considered a tax resident in Malta if you spend more than 183 days in a calendar year, which means you will be subject to taxes.
Who pays taxes in Malta?
- Maltese-domiciled residents who are taxed on worldwide income and capital gains.
- Non-domiciled residents are taxed on income earned in the country and on foreign income only if it is brought into the country.
- Non-residents are taxed only on income coming from within Malta, such as rental income from a Maltese property.
- If a non-dom resident earns more than €35,000 from abroad, they must pay at least €5,000 in tax each year, even if they do not bring any of that money into the country.
Personal Income Tax in Malta
Malta has introduced several important changes to its personal tax system, especially for families and pensioners. The tax-free income limit for married couples with two or more children has increased to €22,500. To qualify for the special “with children” tax rates, children must be under 18, or up to 23 if they are in full-time education. In addition, pensioners benefit from full tax exemption on pension income up to €16,636, meaning that 100% of pension income within this limit is not taxed.
| Tax Category | Income Bracket (€) | Tax Rate | Subtract (€) |
|---|---|---|---|
| Single Individuals | 0 – 12,000 | 0% | 0 |
| 12,001 – 16,000 | 15% | 1,800 | |
| 16,001 – 60,000 | 25% | 3,400 | |
| 60,001+ | 35% | 9,400 | |
| Married (Joint Computation) | 0 – 15,000 | 0% | 0 |
| 15,001 – 23,000 | 15% | 2,250 | |
| 23,001 – 60,000 | 25% | 4,550 | |
| 60,001+ | 35% | 10,550 | |
| Married with 1 Child | 0 – 17,500 | 0% | 0 |
| 17,501 – 26,500 | 15% | 2,625 | |
| 26,501 – 60,000 | 25% | 5,275 | |
| 60,001+ | 35% | 11,275 | |
| Married with 2+ Children | 0 – 22,500 | 0% | 0 |
| 22,501 – 32,000 | 15% | 3,375 | |
| 32,001 – 60,000 | 25% | 6,575 | |
| 60,001+ | 35% | 12,575 | |
| Parent Rate (1 Child) | 0 – 14,500 | 0% | 0 |
| (Single / working parents) | 14,501 – 21,000 | 15% | 2,175 |
| 21,001 – 60,000 | 25% | 4,275 | |
| 60,001+ | 35% | 10,275 | |
| Parent Rate (2+ Children) | 0 – 18,500 | 0% | 0 |
| 18,501 – 25,500 | 15% | 2,775 | |
| 25,501 – 60,000 | 25% | 5,325 | |
| 60,001+ | 35% | 11,325 |
Social Security Contributions in Malta in 2026
Social security contributions in Malta are paid weekly and are divided in two classes. Class 1 is for employees and employers, and Class 2 is for self-employed people.
Class 1: Employees & employers
- The general tax rate is 10% of your basic weekly wage.
- The maximum weekly contribution is capped at €55.93 each for the employee and the employer.
- Maternity fund: Employers pay an additional small percentage of roughly 0.3% into a national maternity leave fund.
Class 2: Self-employed
Self-employed individuals pay a higher rate since they also have to cover the “employer” portion themselves.
- The standard rate is 15% of their net income from the previous year.
- The maximum weekly rate for those born after 1962 is approximately €83.89.
Corporate Tax in Malta
Malta is a famous and attractive country for anyone interested in Company formation in Malta because of its Full Imputation System. This is a system that avoids double taxation, so company profits are not taxed again in full when paid to shareholders.
- Standard Corporate tax rate: Companies pay a flat 35%corporate tax on profits.
- Effective 5%: After profits are paid as dividends, shareholders can claim a 6/7 refund of the tax paid, which will help reduce the real tax cost to 5% for trading companies.
- 15% tax option: Companies can choose to pay a 15% flat tax rates tax with no refunds. This option is usually used by businesses that want a simpler system or need to comply with global minimum tax rules.
Domicile vs Non-Domiciled Corporations in Malta
When it comes to taxing corporations, Malta has two categorised concepts that are taxed differently. Incorporation, where the company was born, and Management and Control, where the foreign company is managed and controlled in Malta, also referred to as a non-dom corporation. This means Board meetings are held in Malta, the directors, or at least a majority, are based in Malta, and senior executive decisions and day-to-day management occur in the country.
A “non-dom” company is not taxed on all of its worldwide income. Instead, it is only taxed on income earned in the country and on foreign income that is brought into the country. However, to prevent people from living in Malta and paying 0% tax on millions earned abroad, the government has a Minimum Tax for certain people and companies:
- If a resident “Non-Dom” company earns more than €35,000 in foreign income, it must pay a minimum of €5,000 in tax to Malta each year, even if it never remits any of the income.
| Type of Income | Tax Treatment in Malta |
|---|---|
| Malta-Source Income | Taxed at 35% for example, profits from sales made in Malta |
| Malta-Source Capital Gains | Taxed at 35% e.g profits made from selling a Maltese asset |
| Foreign-Source Income | Taxed only if remitted to Malta for instance, bringing foreign profits into a Maltese bank account |
| Foreign Capital Gains | Exempt from tax at 0%, even if the money is brought into Malta |
To learn more about how to qualify for the Malta Global Residence Program and get in touch with our team
VAT in Malta
VAT in Malta is taxed at a standard rate of 18% but the are also many categories that are reduced.
- 18% standard rate: Applies to most goods and services.
- 12%: Applies to certain chartering activities and specific services.
- 7%: Used for hotel accommodation and sporting facilities.
- 5%: Applies to electricity, medical equipment, books, and some food items.
- 0% (Zero-rated): Applies to medicines and most unprocessed food.
How does Crypto tax work in Malta?
Cryptocurrency in Malta is taxed based on how it’s used, which contributes to its reputation as a Malta tax haven. If you make a profit from buying and selling crypto, it’s considered a capital gain and taxed at 35%. If you actively trade cryptocurrencies, the profits are taxed as part of your income. For those mining crypto, the income is treated as business income. Additionally, Malta’s crypto tax laws do not charge VAT unless Bitcoin is used to purchase goods or services.
| Activity | Tax Rate | Description of Activity |
|---|---|---|
| Long-term HODLing | 0% | Buying crypto and holding it as a “store of value” for a long period. This is treated as a private investment and is exempt from capital gains tax. |
| Day Trading | 15% – 35% | Frequent buying and selling to make short-term profits is seen as a business activity or trade, so it is taxed at progressive income rates. |
| Staking & Mining | 15% – 35% | Rewards you earn from mining, staking, or liquidity farming are treated as taxable income when you get them, and the tax is calculated based on their market value at that time. |
| Airdrops & Forks | 15% – 35% | Receiving free tokens or new coins from a chain split is as income based on their value when received. |
| Spending Crypto | 0%* | Using crypto to buy goods or services is seen as a barter trade so VAT applies to the goods but crypto gains are not taxed for private users. |
| Crypto Business | 35%** | Companies providing crypto exchanges, wallet services, or professional mining must pay corporate tax but it can be reduced through shareholder refunds. |
Property Taxes in Malta
What stands out most about property taxes in Malta is that the country does not have a recurring annual property tax, meaning there is no council tax. Instead, taxes are based on transactions. There is also no traditional inheritance tax; rather, the country charges a Stamp Duty when property is transferred to heirs.
| Property event | Tax type / rate | When its paid |
|---|---|---|
| General | No annual property tax | Malta has no council tax or municipal rates. Taxes are only triggered by specific events like buying, selling, renting, or inheriting. |
| Buying a Property | Standard: 5% | Paid on the property’s value. |
| First-Time Buyers: 0% on first €200,000 | Permanent from 2026. | |
| Second-Time Buyers: Refund up to €3,000 (€5,000 for disabilities) | Sell first home to buy a new main residence. | |
| Gozo Properties: 2% | This is a government stamp duty incentive scheme that used to allow buyers of residential property in Gozo to pay a reduced stamp duty rate of 2% instead of the normal 5% | |
| UCA & Vacant Properties: 0% on first €750,000 | Applies to Urban Conservation Areas or properties vacant over 7 years. | |
| Selling a Property Transfer tax (Property Capital Gains Tax) | Standard: 8% | Paid by seller on selling price. |
| Reduced: 5% | If sold within 5 years and not primary residence. | |
| Primary Residence Exemption: 0% | Owned and lived in for at least 3 years; sell within 12 months of moving out. | |
| Renting a Property | Option A – Flat Rate: 15% | Final withholding tax on gross rental income; simple, no bookkeeping needed. |
| Option B – Progressive: 0–35% | Add rental income to personal income; can deduct maintenance and interest. | |
| Inheritance Tax / Gifts | Standard: 5% | Stamp duty applies on property transfer. |
| Reduced Rate: 3.5% on first €400,000 | For inheriting a primary residence (2026 update). |
Capital Gains Tax in Malta
- Shares & securities: Profits from selling shares are normally added to your income and taxed at the usual income tax rates of up to 35%. If you are resident but not domiciled, i.e, non-dom, foreign capital gains are not taxed, even if you bring the money into Malta.
- Exemptions: Gains from selling shares in companies listed on the Malta Stock Exchange are also tax-free.
Tax Benefits for Non-Domiciled People in Malta
- If you are a tax resident but not domiciled in Malta, you are not taxed on your worldwide income.
- Non-doms only pay tax on income earned in Malta, such as salary from a Maltese job or interest from a Maltese bank account.
- Non-dom tax residents pay tax on foreign income only if it’s brought into Malta, for example, by transferring it to a Maltese bank account.
- If you make capital gains outside of Malta, such as selling foreign property or foreign shares, those profits will not be taxed in Malta, even if you transfer the full amount to a Maltese bank account.
- Malta has a €5,000 minimum tax rule, which means non-dom residents are required to pay €5,000 annually to contribute to the tax system, but it only applies when your foreign income exceeds €35,000 per year, even if that income is not remitted to Malta. This rule is also only applicable if you are not covered by a special residence scheme, such as the Global Residence Programme.
Residency Programs with Tax Incentives in Malta
The Malta Retirement Programme (MRP) is for non-EU, non-EEA, and non-Swiss retirees who move to Malta and want to benefit from the tax perks. To qualify, applicants must own or rent a property in Malta, have health insurance covering both Malta and the EU, and meet certain financial requirements. Retirees pay a 15% tax on their foreign pension income brought into Malta, with a minimum annual tax of €7,500. Employment is limited, but non-executive roles are allowed. Retirees are encouraged to spend at least 90 days a year in Malta.
The Malta Global Residence Program (GRP) is for non-EU/EEA nationals who want to live in Malta and enjoy lower taxes. To qualify, applicants need to have an annual income of around €100,000 and show they are financially stable. They must also either buy or rent a property in Malta that meets certain value requirements. The program offers a flat 15% tax rate on foreign income, with a minimum annual tax of €15,000. Income earned in Malta is subject to Maltese tax rules. The residence permit is usually given for one year and can be renewed if the requirements are still met. Family members like spouses, children, and dependent parents can also join the program
Countries with Double Tax Treaties with Malta
Malta has double tax treaties with over 70 countries to prevent people from paying tax twice on the same income. These treaties help by either reducing tax rates or allowing tax credits for taxes paid abroad. They mainly cover income like dividends, interest, and pensions, and aim to make international business and investment easier by reducing tax barriers.
| Country | Country | Country | Country |
|---|---|---|---|
| Austria | Belgium | Bulgaria | Croatia |
| Cyprus | Czech Republic | Denmark | Estonia |
| Finland | France | Germany | Greece |
| Hungary | Ireland | Italy | Latvia |
| Lithuania | Luxembourg | Netherlands | Poland |
| Portugal | Romania | Slovakia | Slovenia |
| Spain | Sweden | Albania | Andorra |
| Georgia | Iceland | Isle of Man | Jersey |
| Guernsey | Liechtenstein | Moldova | Monaco |
| Montenegro | Norway | Russia | San Marino |
| Serbia | Switzerland | Ukraine | United Kingdom |
| Bahrain | Israel | Jordan | Kuwait |
| Lebanon | Qatar | Saudi Arabia | Syria |
| United Arab Emirates | China | Hong Kong | India |
| Korea (Republic of) | Malaysia | Pakistan | Singapore |
| Thailand | Turkey | Vietnam | Canada |
| United States of America | Barbados | Mexico | Uruguay |
| Botswana | Egypt | Ethiopia | Libya |
| Mauritius | Morocco | South Africa | Tunisia |
| Australia |
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