The most significant benefit of the Maltese tax regime for non-domiciled foreigners is that their foreign sourced but not remitted income is tax exempt.Normally, immigrants who live in Malta as EU citizens or third-country nationals, under the several residency by investment programmes or even the citizenship scheme (IIP) must pay their personal income tax, at progressive rates of up to 35%.Luckily, Malta's financial legislation maintained its colonial past, regarding the "remittance-based tax system." It allows that third country nationals can apply for a beneficial "special tax status" and the remittance basis of taxation will apply. Participants of the official residency by investment programs can live a high-quality tax-free lifestyle in the Mediterranean island nation and freely travel or stay in the other EU Member States. It's important to note that foreign sourced income remitted to Malta is taxed at 15% through the Global Residence Programme.There are two residency by investment schemes in Malta, but one of them requires a flat tax, instead of investment. These investment programs apply only for non-EU/EEA/Swiss Nationals:
Malta Global Residence Programme
Malta Residence and Visa Programme
Important to mention also the other schemes with tax benefits, as the Self-sufficient Visa, Malta Retirement Programme, Qualifying Employment in Innovation and Creativity Rules, UN Pensions Programme Rules, Highly Qualified Persons Rules, Qualifying Employment in Aviation, etc.In the case of the Global Residence Program, applicants are eligible if they purchase or rent a qualifying residential real estate and pay only 15,000 euros annual flat tax. Meanwhile, under the Malta Residence and Visa Programme candidates must invest at least 250,000 in property and contribute more 30,000 euros.Residents under the investor’s immigration schemes pay 35% income tax on their income from Malta. The information below applies for the income tax for ordinary residents (for basis year 2017.) Malta taxes the domiciled and ordinary resident individuals on their worldwide income.(Source: Inland Revenue https://ird.gov.mt/services/taxrates.aspx)Married taxpayers
Chargable income (EUR)
Chargable income (EUR)
Forming and using a Maltese company also offers several advantages, but the special, effective total of only 5% burden applies when the owners of the company are NOT Maltese residents, and 95% of business activity happens abroad.VAT in Malta
18% for most of the goods, services and importation.
7% on accommodation
5% on various printed matters, confectionery items, medical accessories, items for the exclusive use for the disabled, arts, antiques, repairing of bicycles and clothing, etc.
To summarise the advantages of the Maltese tax system for HNWI immigrants: if you live in Malta, and your income which arises from abroad, then Malta provides the perfect low-tax (tax-free) lifestyle in the European Union. It is a unique feature nowadays because there are other well-known immigration schemes in the EU with tax incentives as the Portuguese or the Spanish Golden Visas - but Malta offers better conditions, regarding the tax burden.Read here all the details of the MRVP!