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
Chargable income (EUR) | Rate (%) | Subtract (EUR) | |
From | To | ||
0 | 12,700 | 0 | 0 |
12,701 | 21,200 | 15 | 1,905 |
21,201 | 28,700 | 25 | 4,025 |
28,701 | 60,000 | 25 | 3,905 |
60,001 | and above | 35 | 9,905 |
Chargable income (EUR) | Rate (%) | Subtract (EUR) | |
From | To | ||
0 | 9,100 | 0 | 0 |
9,101 | 14,500 | 15 | 1,365 |
14,501 | 19,500 | 25 | 2,815 |
19,501 | 60,000 | 25 | 2,725 |
60,001 | and above | 35 | 8,725 |
- 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.