Special Tax rates
An individual who has been granted this special tax status will be subject to tax at the flat rate of 15% on any income that is received in Malta from foreign sources by him or his dependents.
Conditions to satisfy
- The individual is a third-country national and not a long-term resident, Maltese, EEA or Swiss national;
- He is in receipt of stable and regular income which is sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;
- The individual owns or rents an immovable property which the individual occupies as his principal place of residence worldwide. The values of the property need to be as follows: if owned: Malta € 275,000 Gozo: € 220,000; if rented: Malta € 9,600 p.a. Gozo: € 8,750 p.a.;
- The individual is not a beneficiary in terms of any other special tax programme;
- Is in possession of a valid travel document, as well as medical insurance which covers himself and his dependents;
- He can adequately communicate in one of the official languages of Malta, either Maltese or English; and
- He is a fit and proper person
Minimum Tax requirement
Beneficiaries of these special tax rates will need to pay a minimum tax of €15,000 annually. This also covers the income of the dependents.
Foreign-sourced income which is remitted to Malta will be taxed at a ﬂat rate of 15%. Any other income that is chargeable to be taxed in Malta, will be subject to tax at the rate of 35%.
- Regular payments through the provisional tax system;
- Filing of an annual income tax return;
- Making an annual declaration that the individual has not resided in a jurisdiction other than Malta for a period exceeding 183 days.
Household staﬀ may reside in the qualifying property with the beneficiary. The individual providing the service is required to provide such service in whole or in part within the qualifying property, and would need to have been in an employment relationship with the beneficiary for at least two years, prior to the application date.
It is important that the rendering of such services by the household staﬀ is regulated by a contract of service. Such staﬀ will be subject to the normal progressive rates of tax.