A brief overview of Malta's Tax Benefits
Updated: Apr 25, 2019
With excellent residency conditions and very low taxation rates, Malta remains a very attractive European option for those seeking tax efficiency when they relocate.
Your FSPC lead contact can help you make the most of the many tax benefits offered by living on, and investing in, the Maltese islands. We can suggest current tax programmes that you may be eligible for, before guiding you through the complete application process.
There are a variety of tax benefits available if you are a foreign national who is taking up residence in Malta. For example, the Malta Residence Programme for EU Nationals and the Global Residence Programme for Non-EU Nationals have both recently been launched, specifically aimed at providing benefits to high-net-worth individuals taking up residence on the islands. These programmes afford you the advantage of paying tax at a flat rate of 15% on all foreign source income that is remitted to Malta, while any other income is subject to the normal flat rate of 35%.
Malta also offers numerous tax benefits to businesses relocating here. Although corporate tax is set at 35%, shareholders are normally entitled to a partial refund, following the distribution of dividends, or through participation in relevant exemption schemes. In fact, Malta is the only EU jurisdiction to have a full tax imputation system, having entered into more than 70 double tax treaties and double taxation relief programmes to ensure that tax is never paid twice on the same income in different countries.
For individuals who choose to move to Malta for work purposes, there are also tax advantages. Those whose stay in Malta exceeds 183 days in a year are regarded as being resident in Malta and are subject to the local tax rates. However, foreigners who are resident but not domiciled in Malta are not taxed on their worldwide income, only on income sourced from Malta.
Meanwhile, those partaking in the Highly Qualified Persons Scheme, which is aimed at expatriates who hold an eligible office under a qualifying employment contract, can benefit from a reduced tax rate of 15% on their employment income.