Special Tax rates
An individual who has been granted this special tax status will be subject to tax at a 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 national of the EU, Iceland, Norway,Liechtenstein or Switzerland, but not a permanent resident of Malta or a Maltese national;
- The individual is not a beneficiary in terms of any of other special tax programme;
- 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..
- He is in receipt of (a) stable and regular resources (source of income) which are (is) sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;
- Is in possession of a valid travel document as well as sickness 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 requirements
Beneficiaries of these special tax rates will need to pay a minimum tax of €15,000 annually.
Foreign sourced income which is remitted to Malta will be taxed at a ﬂat rate of 15%. Any other income, that is chargeable to tax in Malta, will be subject to tax at the rate of 35%.
- Filing 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;
- Pay the minimum tax by the end of April of the year immediately preceding the year of assessment, and the balance by the tax return date.