Personal Taxation

For tax purposes, individuals are considered to be residents in Malta if they declare their intention to take a Maltese residency within 3 months of their arrival in Malta.

Notwithstanding this, an individual will automatically be considered as a resident in Malta if during a particular year he/she is present in Malta for more than six months in one calendar year.

Taxability of foreigners who take up residence in Malta

Foreign residents in Malta are:

  • Taxed on income and capital gains arising in Malta; and
  • Taxed on income arising outside of Malta that is remitted to Malta; and
  • Not taxed on capital gains accrued outside of Malta, even if such gains are remitted to Malta.

Income tax rates applicable to Maltese residents are the following (2019):

Parent rates € % Married rates Parent rates
0 - 9,100 0 0 - 12,700 0 0 - 10,500 0
9,101 - 14,500 15 12,701 - 21,200 15 10,501 - 15,800 15
14,501 - 19,500 25 21,201 - 28,700 25 15,801 - 21,200 25
19,501 - 60,000 25 28,701 - 60,000 35 21,501 - 60,000 25
60,001 & over 35 60,001 & over 35 60,001 & over 35

Source: https://cfr.gov.mt/en/inlandrevenue/personaltax/Pages/Tax-Rates-2019.aspx

Taxability of highly qualified persons

Individuals who occupy a senior position in a company that is licensed with the MFSA, MGA or undertakings holding an air operators certificate or an aerodome license issued by Transport Malta may qualify for a flat tax rate of 15% on their employment income, provided that the annual salary is at least €84,016 for basis year 2018, revised annually in accordance with the retail price index published by the National statistics office. 

Source: https://cfr.gov.mt/en/inlandrevenue/legal-technical/Pages/Tax-Guidelines-on-Highly-Qualified-Persons-Rules.aspx 

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