Fiscal and Other Incentives

Personal Taxation

Individuals who are domiciled and ordinarily resident in Malta pay income tax on their worldwide income. Whereas, individuals who are either not ordinarily resident or not domiciled in Malta are taxable on income and capital gains arising in Malta and on income arising outside Malta which is received in Malta. Such individuals are not taxed on capital gains arising outside Malta even if received in Malta. The six-month test is likely to be definitive in establishing residence. Non-resident individuals pay tax on their Malta source income only; but local interest and royalty income are exempt from tax, as are capital gains on holdings in collective investment schemes or on securities as long as the underlying asset is not Maltese immovable property. Returned migrants are offered a special tax regime: a person born in Malta who returns to Malta can elect to pay 15% income tax on local income only. High Net Worth Individuals or individuals accepted under the Global Residence Programme are taxed at a reduced rate of 15% on foreign sourced income received in Malta. Furthermore, individuals in receipt of employment income, requiring the performance of the duties mainly outside Malta will also be subject to a flat rate of 15%, subject to certain conditions.

The current rates of tax are:

Individuals resident  in Malta

MarriedSingle
Income, EuroTax RateIncome, EuroTax Rate
0-11,9000%0-8,5000%
11,901-21,20015%8,501-14,50015%
21,201-60,00025%14,501-60,00025%
60,001 and over35%60,001 and over35%

Non Residents (Married Or Single)

Income, EuroTax Rate
0-7000%
701-3,10020%
3,101-7,80030%
7,801 and over35%