Malta Tax System Overview
Malta operates a progressive income tax system with rates ranging from 0% to 35%. The tax year follows the calendar year (January–December), and all residents with income must file an annual return.
Your tax liability depends on two key factors: tax residence and domicile status. These determine not only which rates apply but also which income is taxable.
Key Concepts
| Status | Malta Income | Foreign Income | Foreign Capital Gains |
|---|---|---|---|
| Resident & Domiciled | Taxed (0–35%) | Taxed worldwide | Taxed worldwide |
| Resident, Not Domiciled | Taxed (0–35%) | Taxed only if remitted | Not taxed (even if remitted) |
| Non-Resident | Taxed (0–35%) | Not taxed | Not taxed |
2025 Income Tax Brackets
Malta has three sets of tax brackets depending on your filing status: Single, Married (joint computation), and Parent. The brackets below apply to the 2025 tax year (filed in 2026).
Single Rates
| Taxable Income (€) | Rate | Subtract (€) |
|---|---|---|
| 0 – 9,100 | 0% | — |
| 9,101 – 14,500 | 15% | 1,365 |
| 14,501 – 60,000 | 25% | 2,815 |
| 60,001+ | 35% | 8,815 |
Married (Joint Computation) Rates
| Taxable Income (€) | Rate | Subtract (€) |
|---|---|---|
| 0 – 12,700 | 0% | — |
| 12,701 – 21,200 | 15% | 1,905 |
| 21,201 – 60,000 | 25% | 4,025 |
| 60,001+ | 35% | 10,025 |
Parent Rates
| Taxable Income (€) | Rate | Subtract (€) |
|---|---|---|
| 0 – 10,500 | 0% | — |
| 10,501 – 15,800 | 15% | 1,575 |
| 15,801 – 60,000 | 25% | 3,155 |
| 60,001+ | 35% | 9,155 |
How to Read the “Subtract” Column
The subtract amount is a shortcut for computing tax. Multiply your total taxable income by the rate, then subtract the figure. For example, a single person earning €40,000: €40,000 × 25% = €10,000 − €2,815 = €7,185 tax (effective rate ~18%).
The Non-Domicile (Non-Dom) Regime
Malta's non-dom regime is one of the most attractive tax frameworks in Europe for expats. If you are resident in Malta but not domiciled (i.e. your permanent home is elsewhere), you benefit from the remittance basis of taxation.
What Is Taxed
- • Income arising in Malta (salary from Maltese employer, Maltese business income, Maltese rental income)
- • Foreign income that you remit (transfer) to Malta
What Is NOT Taxed
- • Foreign income that stays outside Malta
- • Capital gains arising outside Malta — even if remitted
- • Inheritance received from abroad (no inheritance tax in Malta)
€5,000 Minimum Tax
Non-domiciled residents who have foreign income (whether or not it is remitted) must pay a minimum annual tax of €5,000. This applies even if your Maltese-source income alone would result in less than €5,000 in tax. If your total tax from Maltese and remitted income already exceeds €5,000, no additional top-up is required.
Who Qualifies as Non-Domiciled?
Most expats moving to Malta automatically qualify. You are not domiciled in Malta if:
No formal application is needed — non-dom status is your default position. However, maintaining ties to your home country (bank accounts, property, family) strengthens your non-dom claim.
Non-Dom Status & Your Rental Lease
Being a tenant (rather than a property owner) in Malta can actually reinforce your non-dom status, as it demonstrates that Malta is not your permanent home. Your rental lease serves as supporting documentation for your tax position.
Browse rentals on MyRentSpecial Tax Programmes
Malta offers several special tax programmes designed to attract high-net-worth individuals, skilled professionals, and retirees. Each has specific eligibility criteria, benefits, and property requirements.
Highly Qualified Persons (HQP) Rules
A flat 15% tax rate on qualifying employment income for professionals in eligible sectors.
Eligible Sectors
- Financial services (banking, insurance, funds)
- iGaming (remote gaming operators)
- Aviation (AOC holders)
- Innovative technology arrangements
Key Requirements
- Min. salary €86,938/year
- Not domiciled in Malta
- Eligible role (C-suite, senior management)
- 5-year duration (extendable for some roles)
Income above the qualifying threshold is taxed at the standard 35%. The 15% rate applies only to the employment income from the qualifying contract.
Non-Resident Programme (NRP) — Retirement Scheme
Designed for retirees who are not Maltese nationals. Pension and retirement income remitted to Malta is taxed at a flat 15% with a €7,500 minimum annual tax.
Property Requirements
- Purchase: min €275,000 (Malta) / €220,000 (Gozo/South Malta)
- Rent: min €9,600/year (Malta) / €8,750/year (Gozo/South Malta)
GRP, TRP & MRP Programmes
Three similar residence programmes targeting different nationalities, all offering a flat 15% tax on foreign income remitted to Malta.
| Programme | Eligibility | Min Annual Tax | Min Property (Buy/Rent) |
|---|---|---|---|
| GRP (Global) | Non-EU/EEA/Swiss | €15,000 | €275k / €9,600/yr |
| TRP (The Residence) | EU/EEA/Swiss | €15,000 | €275k / €9,600/yr |
| MRP (Malta Residence) | Maltese returning nationals | €15,000 | €275k / €9,600/yr |
Gozo and South Malta properties have reduced minimums (€220,000 purchase / €8,750/year rent). All programmes require comprehensive health insurance and ban beneficiaries from taking employment in Malta.
Property Requirements & Rental Leases
All special tax programmes require either purchasing or renting property in Malta. Many beneficiaries choose to rent initially to meet the minimum threshold while exploring the island. A qualifying rental lease from MyRent can satisfy this requirement.
Find qualifying rentals from €800/monthFreelancer & Self-Employed Tax Obligations
Malta has a growing freelancer economy, especially in iGaming, tech, and creative industries. If you work for yourself, here are your key obligations.
Self-Employment Checklist
Allowable Business Deductions
Rental Income Tax
If you own property in Malta and rent it out, you have two options for reporting rental income.
Option A: 15% Flat Rate (Most Popular)
- • Pay 15% of gross rental income
- • No deductions allowed
- • Final tax — no further liability
- • Due 30 April of following year
- • Simple and predictable
Option B: Progressive Rates (0–35%)
- • Include rental income in tax return
- • Deductions allowed (maintenance, insurance, loan interest)
- • Taxed at marginal rate (0–35%)
- • Filed with annual return by 30 June
- • Better if high expenses or low total income
Landlord Registration Required
All rental agreements must be registered with the Housing Authority within 10 days of signing. Unregistered leases may result in fines and invalid tax elections. The registration is done online at ha.org.mt.
Crypto & Digital Asset Taxation
Malta was one of the first countries to create a regulatory framework for blockchain (the “Blockchain Island” era), but specific crypto tax legislation is still evolving. Here's how the CFR currently treats crypto income.
Individual Crypto Traders
DLT Companies (VFA Framework)
Companies operating under the Virtual Financial Assets Act are subject to standard corporate tax (35%), but Malta's full imputation system and 6/7ths refund mechanism can reduce the effective rate to 5% for qualifying shareholders. This requires proper corporate structuring and professional advice.
Non-Dom + Crypto = Key Advantage
The combination of non-dom status and Malta's capital gains exemption means foreign crypto capital gains are not taxed in Malta, even if remitted. This is one of the reasons Malta remains popular with crypto investors. Always get professional advice to confirm your specific situation qualifies.
How to File Your Malta Tax Return
All Malta tax residents must file an annual income tax return using Form TA24, submitted online through the CFR portal.
Register on the CFR Portal
Create an account at cfr.gov.mt. You need your eResidence card number and tax identification number (TIN). First-time registrants may need to visit the CFR office.
Gather Your Documents
Employment income: FS3 form from employer. Self-employed: profit & loss records, invoices. Rental income: agreements, election form. Foreign income: bank statements, dividend vouchers.
Complete Form TA24 Online
Log in to the CFR portal, navigate to “Tax Returns”, and complete the TA24 form for the relevant year. The form guides you through sections for employment income, self-employment, rental income, foreign income, and deductions.
Submit by 30 June
The deadline for the 2025 tax year is 30 June 2026. Late filing incurs penalties starting at €50 and interest on unpaid tax.
Pay Any Balance Due
If your FSS deductions or provisional tax payments don't cover your full liability, pay the balance via the CFR portal (bank transfer, debit card). Refunds are issued for overpayment.
Simplified Filing for Employees
If your only income is employment income from a single Maltese employer who handles FSS deductions correctly, and you have no foreign income or deductions to claim, you may qualify for simplified filing. Check with the CFR or your accountant.
Deductions & Tax Credits
Malta offers several deductions and credits that can reduce your tax bill. These are claimed through your annual TA24 return.
Personal Deductions
Double Taxation Relief
Malta has signed over 70 double taxation agreements (DTAs) with countries worldwide, including the UK, Germany, Italy, France, USA, Canada, and Australia. If you're taxed on the same income in two countries, you can claim a tax credit in Malta for foreign tax paid. Even without a DTA, unilateral relief is available under Maltese law.
Common Mistakes Expats Make
Tax Pitfalls to Avoid
- • Assuming non-dom status without understanding the rules — While most expats qualify, buying property in Malta or declaring intent to stay permanently could affect your status
- • Remitting foreign income unknowingly — Transferring money from a foreign account to your Malta bank account counts as remittance, even if it's savings or capital
- • Forgetting the €5,000 minimum tax — Non-doms with any foreign income source must pay at least €5,000 per year
- • Missing provisional tax deadlines — Self-employed must pay in April, August, and December. Late payment incurs interest
- • Not registering for VAT when required — Exceeding the €30,000 threshold without VAT registration results in penalties
- • Ignoring home country tax obligations — Some countries (e.g. USA, Eritrea) tax citizens worldwide regardless of residence. Most others require formal notification of tax emigration
- • Mixing personal and business accounts — Keep separate bank accounts for business income and expenses. The CFR expects clear records
- • Not getting professional advice — Malta's tax system has many nuances. A qualified tax advisor can save you thousands through proper structuring
Frequently Asked Questions
How much tax do expats pay in Malta?
Malta uses progressive income tax rates from 0% to 35%. Single residents pay 0% on the first €9,100, then 15% up to €14,500, 25% up to €60,000, and 35% above that. Non-domiciled residents can benefit from the remittance basis, paying tax only on income remitted to Malta, with a minimum annual tax of €5,000.
What is the non-dom tax regime in Malta?
The non-domicile regime allows foreign residents who are not domiciled in Malta to be taxed only on Maltese-source income and foreign income remitted to Malta. Foreign capital gains are never taxed, even if remitted. A minimum €5,000 annual tax applies.
Do I need to file a tax return in Malta?
Yes — all residents with income must file Form TA24 by 30 June of the following year via cfr.gov.mt. Employees with single-employer FSS income may qualify for simplified filing.
Is cryptocurrency taxed in Malta?
It depends on the activity. Habitual trading is taxed as business income (0–35%). For non-doms, occasional capital gains on foreign crypto are generally not taxed. Staking and yield farming are treated as income.
How much social security do I pay in Malta?
Employees pay 10% of basic weekly wage (Class One), capped at ~€54.81/week. Self-employed pay 15% (Class Two) with the same cap. Employers match the employee’s 10%.
What is the Malta Highly Qualified Persons (HQP) scheme?
The HQP scheme offers a flat 15% tax on qualifying employment income for professionals in financial services, iGaming, aviation, and innovative technology. Minimum salary is €86,938/year. The scheme lasts 5 years.
How is rental income taxed in Malta?
Landlords can choose: (1) 15% flat rate on gross rental income (no deductions), or (2) progressive rates (0–35%) with deductions for expenses. Most choose the 15% flat rate for simplicity.
What is the Malta Global Residence Programme (GRP)?
The GRP offers non-EU nationals a flat 15% tax on foreign income remitted to Malta, with a €15,000 minimum annual tax. Requires property purchase (min €275,000) or rental (min €9,600/year).
Useful Resources & Contacts
Commissioner for Revenue (CFR)
Official tax authority — file returns, pay tax, and get guidance
Malta Financial Services Authority (MFSA)
Regulates financial services, VFA framework, and investment programmes
Residency Malta Agency
Manages GRP, TRP, MRP, NRP, and other residence programmes
Jobsplus
Social security registration and employment services
Social Security Contributions (NI)
National Insurance (NI) contributions are mandatory for all workers in Malta — employed, self-employed, and voluntary. They fund your pension, healthcare, unemployment benefits, and maternity leave.
What NI Contributions Unlock
EU Portability
EU/EEA nationals can aggregate NI contributions from different EU countries under EC Regulation 883/2004. Your years worked in Germany, France, Italy, etc. count towards your Maltese pension entitlement and vice versa. Request an S1 or A1 form from your home country's social security authority.