Malta is an exciting opportunity for expats seeking a dynamic lifestyle in one of the most beautiful Mediterranean destinations. Known for its sunny climate, rich history, and vibrant expat community, Malta offers a unique blend of modern amenities and traditional charm.
In this guide, we’ll walk you through everything you need to know about relocating to Malta from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Malta follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 183 days in Malta during the tax year.
Providing that you are considered non-domiciled, foreign incomes and gains are exempt from taxation in Malta providing that the incomes and gains are not remitted to Malta. Malta can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Malta taxation.
Must be non-domiciled.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Malta, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Malta has 81 double taxation agreements signed.
