Malta
Southern Europe • UTC+2 • Europe/MaltaMaltese Income Tax System
Malta's tax system is based on a remittance basis for residents, with progressive rates for personal income and a flat corporate tax rate.
Income Tax
0%–35%
Progressive rates
Corporate Tax
35%
Standard corporate tax rate
VAT / GST
18%
Standard VAT rate
Nomad Visa
Available
Nomad Residence Permit
Tax System Overview
Malta operates a remittance-based tax system where residents are taxed on income brought into Malta. The system includes personal income tax, corporate tax, and VAT.
System Type
Remittance-based for residents
Resident Taxation
Residents taxed on income remitted to Malta.
Non-Resident Taxation
Non-residents taxed on Maltese-source income only.
Tax Year
January 1 – December 31
Income Tax Bands
Malta's progressive income tax bands based on annual taxable income thresholds.
Tax Treaty
Double Taxation Agreements reduce withholding taxes and avoid double taxation on income from foreign sources.
United Kingdom
Treaty ActiveMalta and the UK have a double taxation treaty that prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United Kingdom
Agreement ActiveMalta and the UK have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for UK–Malta workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
35% standard rate with potential refunds for shareholders
VAT Registration
Mandatory if annual turnover exceeds €35,000.
Freelancer Rules
Freelancers taxed under personal income tax rates; must register for VAT if turnover exceeds threshold.
Crypto Policy
Cryptocurrency gains are treated as capital gains and taxed accordingly.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No local income tax on foreign earnings unless remitted
- Access to EU markets and Schengen area
Filing Roadmap
Register for a Tax Identification Number
Obtain a Maltese tax identification number by registering with the Inland Revenue Department.
Determine Your Tax Residency
Assess your residency status based on physical presence and remittance of income.
Gather Income Documentation
Collect all necessary documents, including income statements and proof of remittances.
File Your Tax Return
Submit your tax return online via the Maltese tax portal by the June 30 deadline.