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Tax Incentives Malta

Tax Incentives Malta & High Net Worth Individuals Rule. The following is a list of incentives and advantages applicable to beneficiaries recognized as High Net Worth Individuals:

  • A Low flat rate of income tax of 15% with a minimum tax liability of € 20,000 after double taxation relief per annum, plus an additional €2,500 per dependent. The tax is calculated on foreign income (excluding capital gains) remitted to Malta;
  • High Net Worth Individuals are not subject to tax on worldwide income. Foreign source income is taxed in Malta to the extent that it is received in or remitted to Malta;
  • There is no real estate tax in Malta. Tax on capital gains arising from the sale of real estate in Malta does exist but residents are exempt if they have used the property as their main residence for three consecutive years and the property is disposed of not later than one year of vacating it.
  • Malta’s tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions. Certain foreign income remitted to Malta qualifies for a reduced withholding rate of foreign tax (this applies typically to individuals, interest and royalties), or is exempt from foreign tax (this applies typically to private pensions and to certain capital gains). The provisions of each particular treaty entered into by Malta must, however, be consulted to determine the treatment of each item of income in each particular case.

Double taxation:

Albania Finland Lebanon San Marino
Australia France Libya Singapore
Austria Georgia Lithuania Slovakia
Barbados Greece Luxembourg Slovenia
Belgium Germany Morocco South Africa
Bulgaria Hungary Montenegro Sweden
Canada Iceland Malaysia Spain
China India Netherlands Switzerland
Croatia Ireland Norway Syria
Cyprus Isle of Man Pakistan Tunisia
Czech Rep. Italy Poland U.A.E.
Denmark Rep. of Korea Portugal U.K.
Egypt Rep. Kuwait Qatar U.S.A.
Estonia Latvia Romania


For tax purposes an individual is normally regarded as being resident in Malta for a particular year if, in that year, his stay in Malta exceeds 183 days. As already noted, however, foreigners residing in Malta are not taxed on their worldwide income, but only on Maltese source income and capital gains and on foreign source income remitted to Malta. Foreign source capital gains are not taxed even if remitted to Malta. The applicable income tax rates are, however, the normal rates of income tax applicable to residents, which are as follows:

“Married” Rates

First € 11,900 Nil
Next € 9,299 15%
Next € 7,499 25%
Remainder over € 28,701 35%

“Single” Rates

First € 8,500 Nil
Next € 5,999 15%
Next € 4,999 25%
Remainder over € 19,501 35%


Inheritance Tax

There is no inheritance tax in Malta. However, in the event of death, the beneficiary is liable to 5% transfer tax on the value of the immovable property, as at time of death. If the property is jointly owned and one of the spouses passes away, the 5% is levied on half the value of the property.

This tax is not payable upon the transfer of the residential home to the surviving spouse, provided that the surviving spouse does not sell the home during his/her lifetime.