Who Is This For
International private clients, non-doms, expatriates, remote workers, family office executives, HNWIs relocating to Malta, high-value employees, and advisors structuring Maltese tax residency.
What This Means for You
Your tax exposure in Malta depends primarily on your residence status, domicile, and whether you hold a special tax status. Understanding the distinction between standard progressive rates and flat-rate programmes is essential for strategic planning and compliance.
Malta Personal Tax System: Structure and Key Rules
Malta’s personal income tax system is built on progressive tax bands, but the application of these rates depends on two primary factors:
- Residence / Non-Residence Status
- Special Tax Status (if applicable)
Importantly, Maltese personal income tax does not generally differentiate based on the type of income (employment, business, passive) but rather based on the taxpayer’s residency and domicile status.
The remittance basis of taxation applicable to Resident, not domiciled individuals als continues to make Malta attractive for globally mobile individuals.
Malta Personal Income Tax Rates & Income Brackets for Basis Year 2025
Resident individuals are taxed either on a remittance basis (if non-domiciled) or on a worldwide basis (if domiciled). Malta applies three sets of progressive resident rates:
Non-residents are taxed using a separate rate table with no additional allowances.
1. Resident Tax Rates
These rates apply to Maltese tax residents who do not benefit from a special tax status.
Single Rates (2025)
| Chargeable Income (€) |
Tax Rate |
| 0 – 10,000 |
0% |
| 10,001 – 20,000 |
15% |
| 20,001 – 60,000 |
25% |
| 60,001+ |
35% |
Married Rates (2025)
| Chargeable Income (€) |
Tax Rate |
| 0 – 12,000 |
0% |
| 12,001 – 25,000 |
15% |
| 25,001 – 60,000 |
25% |
| 60,001+ |
35% |
Parent Rates (2025)
| Chargeable Income (€) |
Tax Rate |
| 0 – 11,000 |
0% |
| 11,001 – 21,000 |
15% |
| 21,001 – 60,000 |
25% |
| 60,001+ |
35% |
Table A – Resident Tax Rates (Progressive Bands)
(Annual tables updated upon Budget publication; this publication will be updated each year.)
2. Non-Resident Tax Rates
Non-resident individuals are subject to tax in Malta on source basis only. Their chargeable income falls under a distinct set of brackets.
| Income Band (€) |
Rate |
| 0 – 700 |
0% |
| 701 - 3,100 |
15% |
| 3,101 - 7,800 |
25% |
| 7,801+ |
35% |
Table B – Non-Resident Tax Rates
Non-residents cannot use married or parent rates and cannot claim certain credits available to residents.
Special Tax Statuses in Malta
Several Maltese residency programmes provide flat tax rates rather than progressive bands.
1. The Global Residence Programme (GRP)
- Eligible Non-EU beneficiaries taxed at 15% on foreign income remitted to Malta
- Minimum tax: €15,000 per year
2. The Residence Programme (TRP)
- Eligible EU/EEA/Swiss nationals taxed at 15% on foreign remitted income to Malta.
- Minimum tax: €15,000 per year.
3. Malta Retirement Programme (MRP)
- Pension income taxed at 15%
- Minimum €7,500 + €500 per dependant
4. Highly Qualified Persons Rules (HQP)
- Qualifying employment income taxed at a fixed 15% rate
- Available to certain senior and executive roles in financial services, aviation, gaming and other regulated sectors
5. Other Special Statuses
- Qualifying Employment in Aviation, or Employment in Innovation & Creativity (QEIC).
- Specialist employee regimes (e.g., family offices)
Reduced Tax Rates & Special Computation Methods
Beyond special tax statuses, Malta offers particular reduced rates for certain roles and circumstances.
1. Nomad Residence Tax Computations
- Income from authorized work is exempt from tax in the first year, while working remotely from Malta. As of 2nd year 10% flat-rate applies.
- Not equivalent to standard resident rates.
2. Overseas Employment Rate (OER)
- 15% rate on income derived from work performed abroad, under prescribed conditions.
3. Family Office Senior Employee Rules
- Certain senior roles in licensed family offices apply a 15% rate.
4. Returned Migrants Tax Rates
- Eligible are Maltese citizens returning to Malta after a qualifying period of residence abroad
- Election to be taxed at 15% on the first €10,000 of foreign income remitted to Malta, or €15,000 for married couples,
- the remainder taxable at standard progressive rates.
These mechanisms are subject to strict statutory criteria and require careful legal interpretation.
Income Tax Compliance, Filing & Deadlines
Under the Income Tax Management Act (Cap. 372) and Commissioner for Tax & Customs guidance:
- Employee income tax is withheld under the FSS (Final Settlement System).
- Self-employed persons must file an annual tax return and make provisional tax payments.
- Tax Return and Tax Payment Deadline for individuals is 30 June.
- Provisional Tax & Social Security is due in April, August and December.
- STS beneficiaries must file an annual compliance submission evidencing minimum tax settlement and continued eligibility.
How Our Malta Tax Lawyers Can Assist
Our Private Client Tax practice provides:
- Tax residence and domicile assessments, under domestic and Treaty rules.
- Advisory on selecting and applying for special tax statuses and assistance with the actual STS application.
- Tax analysis of individual’s income tax implications under the applicable basis of taxation.
- Structuring of international income flows.
- Family office, succession and estate tax planning.
- Annual tax compliance, filing, and correspondence with the Commissioner for Tax & Customs.
- Integrated legal, tax, and relocation support for HNW families and executives.
