Are you thinking about moving to Malta? You’re not alone. This Mediterranean jewel draws in global citizens with its stunning landscapes and attractive tax system. With tax rates ranging from 0% to 35% and double-taxation treaties with numerous countries, Malta has become a prime destination for expats seeking citizenship.
This guide will delve into Malta’s tax system, explaining how the tax brackets function and the implications of various deductions. Additionally, we’ll explore specific programs, such as the Global Residence Program (GRP) and the Malta Retirement Program, which offer a flat rate of 15% tax on foreign income for expats. We’ll also cover Malta’s dual taxation treaties, special tax statuses, and what becoming a Maltese citizen means for your taxes.
Let’s uncover the unique benefits of Malta’s tax structure and how they can enhance your experience as an expat.
Tax Rates in Malta
Single Tax Rates
- €0 to €9,100: No tax is charged on income up to €9,100.
- €9,101 to €14,500: Income in this range is taxed at 15%, but you subtract €1,365 from the tax calculated to determine the final tax due.
- €14,501 to €19,500: Income in this range is taxed at 25%, subtract €2,815 from the calculated tax.
- €19,501 to €60,000: Also taxed at 25%, but with a subtraction of €2,725.
- €60,001 and over: Income above €60,000 is taxed at 35%, subtract €8,725 from the tax calculated.
Married Tax Rates
- €0 to €12,700: No tax is charged on income up to €12,700.
- €12,701 to €21,200: Income in this range is taxed at 15%, subtract €1,905 from the tax calculated.
- €21,201 to €28,700: This income bracket is taxed at 25%, with a subtraction of €4,025.
- €28,701 to €60,000: Also taxed at 25%, but with a subtraction of €3,905.
- €60,001 and over: Income above €60,000 is taxed at 35%, subtract €9,905 from the calculated tax.
Parent Tax Rates
- €0 to €10,500: No tax is charged on income up to €10,500.
- €10,501 to €15,800: Income in this range is taxed at 15%, subtract €1,575 from the tax calculated.
- €15,801 to €21,200: This bracket is taxed at 25%, with a subtraction of €3,155.
- €21,201 to €60,000: Also taxed at 25%, but with a subtraction of €3,050.
- €60,001 and over: Income above €60,000 is taxed at 35%, subtract €9,050 from the calculated tax.
Explanation of Subtraction
The subtraction values are applied to the initially calculated tax for each income bracket to ensure a smooth transition between different tax levels. This system prevents sharp increases in tax liability when a taxpayer’s income just exceeds a threshold. By adjusting the final tax due with these subtractions, the effective tax rate is reduced for individuals whose income marginally surpasses a bracket limit. This thoughtful mechanism moderates the overall tax burden, making it more proportionate to the taxpayer’s ability to pay.
Example Calculation for a Single Individual
Suppose a single individual earns €20,000 annually:
- The first €9,100 is taxed at 0%.
- The next €5,400 (from €9,101 to €14,500) is taxed at 15%. The tax is €810, then subtract €1,365 (resulting in €0 due to the subtraction exceeding the tax).
- The next €5,000 (from €14,501 to €19,500) is taxed at 25%. The tax is €1,250, then subtract €2,815 (resulting in €0 due to the subtraction exceeding the tax).
- The remaining €500 (from €19,501 to €20,000) is taxed at 25%. The tax is €125, then subtract €2,725 (resulting in €0 due to the subtraction exceeding the tax).
In this case, the total tax due would effectively be €0 due to the subtraction values.
This tax structure incentivizes those earning near the upper limits of lower tax brackets by reducing the overall tax burden.
Taxes for Residents in Malta
Residents in Malta who are both domiciled (permanent residents) and ordinarily resident must declare their worldwide income for taxation. This includes all income, whether earned within Malta or abroad. The income considered includes not only personal income but also that of their spouse and dependent children. This comprehensive taxation approach means that residents are taxed on their global income, including earnings from employment, investments, rental income, and other sources. However, Malta’s tax system doesn’t impose inheritance or wealth taxes.
Capital Gains Taxes for Residents
Capital gains in Malta are taxed differently depending on the nature of the asset. Gains from the sale of immovable property are generally taxed at a final tax rate of 8% of the transfer value. However, exceptions and reductions are available under specific conditions, such as properties held for over three years or inherited properties. For other assets, including shares and securities, capital gains are included in the individual’s total income and taxed at their respective income tax rate if the assets are held as part of a business activity. Otherwise, capital gains from the sale of shares not held in a trading stock of a company whose capital is not mainly invested in immovable property in Malta are exempt from tax.
Taxes for Non-residents in Malta
Non-residents in Malta who are either not domiciled (not permanent residents) or not ordinarily resident are subject to a different taxation scheme. They only have to pay taxes on income that is either accrued in or derived from Malta. So, they will not be taxed on any foreign income. Additionally, any income that is remitted to Malta also falls under taxable income. This includes any money earned within Malta, such as wages from employment performed in Malta, income from property located in Malta, or business and investment income generated in Malta. Like residents, this taxation also applies to the income of their spouse and dependent children who meet these criteria. As with residents, non-residents are also not subject to inheritance or wealth taxes in Malta.
Please note that the minimum annual tax payment for non-domiciled individuals is €5,000. This minimum payment can be decreased by any double taxation relief applicable to the individual. Double tax relief is only available on income that has been remitted to Malta and on which tax has already been paid in another country. However, this minimum tax payment doesn’t apply to individuals whose foreign income is less than €35,000.
Read the full conditions here.
Capital Gains Taxes for Non-residents
Non-residents are required to pay capital gains tax only on gains derived from Maltese-sourced income. This includes gains from immovable property located in Malta or gains from the sale of shares in companies where the value is derived principally from Maltese real estate. Other types of capital gains, if not remitted to Malta, may not be subject to Maltese tax, depending on the specific circumstances and any applicable double taxation agreements.
Special Tax Statuses and Programs for Expats
Malta offers several attractive tax statuses and programs that can significantly benefit expats. These programs are designed not only to make Malta an appealing destination for residency but also to encourage specific professional activities within the country:
Global Residence Program (GRP)
Designed specifically for non-EU, EEA, or Swiss nationals, the Global Residence Program provides an appealing special tax status. It features a flat tax rate of 15% on foreign income received in Malta. This program is ideal for individuals who plan to purchase or rent property in Malta and establish their tax residency by residing there for at least 183 days each year.
Eligibility
To be eligible for the GRP, applicants must meet several criteria:
- The applicant should not be an EU, EEA, or Swiss national, including dual citizens with one of these nationalities.
- The applicant must not currently benefit from other specified Maltese tax programs unless they renounce those benefits.
- Ownership or rental of qualifying property in Malta which must be the applicant’s principal residence worldwide.
- Sufficient financial resources to support oneself and dependents without needing Maltese social assistance.
- Possess valid travel documents and comprehensive sickness insurance covering all risks as Maltese nationals across the EU.
- Proficiency in one of Malta’s official languages and a clean criminal record, indicating the applicant is a fit and proper person.
Tax Benefits
GRP beneficiaries enjoy a favorable tax regime:
- A flat rate of 15% on foreign income received in Malta, with a minimum tax liability of €15,000 annually, covering the beneficiary and their dependents.
- Other income sourced in Malta or not covered under the GRP rules is taxed at a rate of 35%.
Property Ownership Option Guidelines
When purchasing immovable property in Malta, the cost requirements differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The minimum cost must be €275,000.
- Immovable property situated in the south of Malta: The minimum cost must be €220,000.
- Gozo: The minimum cost for property in Gozo is also €220,000.
Rental Option Guidelines
When renting immovable property in Malta, the annual costs differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The annual rent must be at least €9,600.
- Immovable property situated in the south of Malta: The annual rent must be at least €8,750.
- Gozo: The annual rent for properties in Gozo is also set at a minimum of €8,750.
Employment Conditions
Beneficiaries are not barred from working in Malta and can apply for a work permit if they meet the necessary conditions. This makes the GRP suitable for individuals who wish to continue their professional activities while enjoying the program’s tax benefits. Beneficiaries can also have household staff, provided all required procedures are satisfied, ensuring compliance with Maltese employment regulations.
Application Process
Applications must be submitted through an Authorized Registered Mandatary (ARM) and require the payment of a non-refundable administrative fee of €6,000, or €5,500 for properties in the south of Malta. The process includes thorough documentation and vetting to ensure compliance with the program’s stringent requirements.
Annual Obligations and Compliance
Beneficiaries must submit an annual tax return declaring any significant changes affecting their tax status. They must also notify the Commissioner for Revenue of any changes in their circumstances or those of their dependents that might affect their tax obligations. The GRP tax status may be voluntarily relinquished or may cease if the beneficiary does not comply with the program’s conditions, such as maintaining the required property or adhering to the stipulated minimum stay requirements. It can also end upon the beneficiary’s death, with potential devolution to a qualifying dependent.
Additional Considerations
The program provides detailed guidelines for household staff and dependents, ensuring they meet specific employment and residency conditions in Malta. Beneficiaries and their mandataries must stay informed about all legal obligations and potential changes to the program to maintain compliance and benefit from the GRP’s tax advantages.
To read the full guidelines for eligibility and conditions, click here.
The Residence Program (TRP)
The Residence Program (TRP) is tailored for EU, EEA, or Swiss nationals who are not permanent residents of Malta. It aims to attract them with a flat rate of 15% on foreign income received in Malta. This program allows beneficiaries to partake in the vibrant Maltese community through property ownership or rental while benefiting from favorable tax conditions.
Eligibility Requirements
To qualify for the TRP, individuals must:
- Be EU, EEA, or Swiss nationals, excluding Maltese nationals.
- Not be beneficiaries of other Maltese tax programs (unless they renounce those benefits).
- Own or rent a qualifying property in Malta, Gozo, or the south of Malta, which they must occupy as their primary global residence.
- Have stable and regular resources sufficient to live without Maltese social assistance.
- Hold a valid travel document and have comprehensive sickness insurance covering all risks across the EU.
- Communicate proficiently in Maltese or English and demonstrate integrity, supported by a clean criminal record.
Tax Benefits
Beneficiaries enjoy a beneficial tax regime under the TRP:
- A flat rate of 15% on foreign income received in Malta, with a minimum tax of €15,000 annually covering the beneficiary and their dependents.
- Other income sourced in Malta or not covered under the TRP rules is taxed at a rate of 35%.
Property Ownership Option Guidelines
When purchasing immovable property in Malta, the cost requirements differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The minimum cost must be €275,000.
- Immovable property situated in the south of Malta: The minimum cost must be €220,000.
- Gozo: The minimum cost for property in Gozo is also €220,000.
Rental Option Guidelines
When renting immovable property in Malta, the annual costs differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The annual rent must be at least €9,600.
- Immovable property situated in the south of Malta: The annual rent must be at least €8,750.
- Gozo: The annual rent for properties in Gozo is also set at a minimum of €8,750.
Employment Conditions
Beneficiaries of The Residence Program (TRP) can work in Malta, provided they secure the necessary work permits. This flexibility makes TRP appealing to EU, EEA, or Swiss nationals who wish to continue their professional activities while enjoying favorable tax conditions. Additionally, beneficiaries can employ household staff if they adhere to all required procedures and ensure compliance with Maltese employment regulations.
Application Process
Applications must be processed through an Authorized Registered Mandatary (ARM) and include a non-refundable administrative fee. The process involves detailed documentation and compliance with specific guidelines to ensure eligibility and adherence to program conditions.
Annual Obligations and Compliance
Beneficiaries must file an annual tax return and report any significant changes affecting their tax status. This includes changes in the number of dependents or household staff. The TRP tax status may be voluntarily relinquished or may cease due to non-compliance with the program’s conditions, such as property requirements and minimum stay rules. It can also end upon the beneficiary’s death, potentially devolving to a qualifying dependent.
Additional Considerations
The program provides detailed guidelines for household staff and dependents, ensuring compliance with Maltese employment and residency conditions. Beneficiaries and their mandataries must remain informed about all legal obligations and potential changes to the program.
Malta Retirement Program (MRP)
The Malta Retirement Program (MRP) is an attractive option for retirees seeking a special tax status. It offers a generous 15% tax rate on foreign income received in Malta. Tailored specifically for pension recipients, this program is designed to attract individuals looking to establish Malta as their primary residence, where they can enjoy favorable tax treatment and a relaxed Mediterranean lifestyle.
Eligibility
To be eligible for the MRP, applicants must meet several criteria:
- Receipt of a pension that is documented and received in Malta, making up at least 75% of the applicant’s chargeable income.
- Non-participation in other specified Maltese residence programs.
- Non-Maltese nationality.
- Ownership or rental of qualifying property in Malta used as the principal residence.
- Sufficient financial resources to support oneself and dependents without relying on Maltese social assistance.
- Possession of valid travel documentation and sickness insurance covering all risks across the EU.
- Ability to communicate in one of Malta’s official languages and deemed to be a fit and proper person.
Tax Benefits
- A flat rate of 15% on foreign income received in Malta, with a minimum tax requirement of €7,500 annually, plus €500 for each dependent and household staff.
- Other income that does not fall under these rules is taxed at 35%.
Property Ownership Option Guidelines
Applicants must own a property in Malta, with the cost requirements varying based on the property’s location and the date of purchase:
From January 1, 2011, to June 30, 2013:
- Immovable property situated in Malta (excluding southern regions): The property must have a minimum cost of €275,000.
- Immovable property situated in Gozo or the south of Malta: The property must cost a minimum of €250,000.
On or after July 1, 2013:
- Immovable property situated in Malta (excluding southern regions): The property must have a minimum cost of €275,000.
- Immovable property situated in Gozo or the south of Malta: The property must cost a minimum of €220,000.
Rental Option Guidelines
For renting an immovable property in Malta, the annual rental costs are determined by the property’s location:
- Immovable property situated in Malta (excluding southern regions): The annual rent must be at least €9,600.
- Immovable property situated in Gozo or in the south of Malta: The annual rent must be at least €8,750.
Employment Conditions
Under the MRP, beneficiaries are restricted from being employed in Malta. However, they are allowed to hold non-executive posts on the board of a Maltese company. Additionally, they can partake in activities related to institutions, trusts, or foundations of a public character, and other similar organizations or bodies of persons that are engaged in philanthropic, educational, or research and development work in Malta.
Application Process
The application must be submitted through an Authorized Registered Mandatary (ARM) and includes a non-refundable administrative fee of €2,500. The process involves a detailed submission of required documents and an acknowledgment of understanding the rules and conditions laid out by the MRP.
Annual Obligations and Compliance
Beneficiaries must annually declare any significant changes that might affect their tax status and comply with the minimum stay requirements. Failure to meet these obligations can lead to the cessation of the special tax status. If specific conditions are met, the status may be transferred to a dependent in case of the beneficiary’s death.
Additional Considerations
The program also covers guidelines for household staff and dependents, ensuring they meet specific conditions for employment and residency in Malta. Beneficiaries are advised to maintain thorough records and stay informed about any legal obligations or changes in the program.
To read the full guidelines for eligibility and conditions, click here.
The United Nations Pensions Program (UNNP)
The United Nations Pensions Program (UNPP) offers special tax status to individuals receiving UN pensions, including Widow’s/Widower’s Benefits. This program is designed for those not holding permanent or long-term residency in Malta, providing favorable tax conditions and allowing participation in specific non-executive roles within Malta-based organizations.
Eligibility Requirements
Eligibility for the UNPP requires:
- Receipt of a UN pension or Widow’s/Widower’s Benefit, with at least 40% received in Malta.
- Non-participation in other Maltese tax programs unless previously renounced.
- Non-Maltese nationality.
- Ownership or rental of qualifying property in Malta, which is occupied as the principal residence.
- Sufficient financial resources to support oneself and dependents without Maltese social assistance.
- Possession of valid travel documentation and comprehensive sickness insurance covering all EU risks.
- Proficiency in one of Malta’s official languages and a clean criminal record, confirming the applicant as a fit and proper person.
Tax Benefits
UNPP beneficiaries benefit from:
- Exemption from income tax on UN pension income received in Malta.
- A 15% tax rate on other foreign income received in Malta, with a minimum tax requirement of €10,000 annually. If both spouses receive a UN pension, an additional €5,000 is required.
- Other income sourced in Malta or not covered under the UNPP rules is taxed at a rate of 35%.
Property Ownership Option Guidelines
When purchasing immovable property in Malta, the cost requirements differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The minimum cost must be €275,000.
- Immovable property situated in the south of Malta: The minimum cost must be €220,000.
- Gozo: The minimum cost for property in Gozo is also €220,000.
Rental Option Guidelines
When renting immovable property in Malta, the annual costs differ depending on the specific location:
- Immovable property situated in Malta (excluding southern regions): The annual rent must be at least €9,600.
- Immovable property situated in the south of Malta: The annual rent must be at least €8,750.
- Gozo: The annual rent for properties in Gozo is also set at a minimum of €8,750.
Employment Conditions
Under the United Nations Pensions Program (UNPP), beneficiaries can engage in employment within Malta, ensuring they can continue professional activities while benefiting from the special tax status. They can hold non-executive posts on the board of a Maltese company or partake in activities linked to philanthropic, educational, or research and development organizations based in Malta. Additionally, beneficiaries are permitted to employ household staff, provided that all necessary legal requirements and procedures are strictly followed, aligning with Maltese employment standards.
Application Process
Applications must be processed through an Authorized Registered Mandatary (ARM) and involve a non-refundable administrative fee of €4,000, reduced to €3,500 for properties in the south of Malta or Gozo. The process demands comprehensive documentation and compliance with specific guidelines.
Annual Obligations and Compliance
Beneficiaries must file an annual tax return and notify the Commissioner for Revenue of any changes in circumstances affecting their tax obligations, such as changes in dependent status or household staff. The special tax status may be voluntarily relinquished or may cease due to non-compliance with the program’s conditions, including property requirements and minimum stay rules. It can also end upon the beneficiary’s death, potentially devolving to a qualifying dependent.
Additional Considerations
The program provides detailed guidelines for household staff and dependents, ensuring they meet specific employment and residency conditions in Malta. Beneficiaries and their mandataries must stay informed about all legal obligations and potential changes to the program to maintain compliance and benefit from the UNPP’s tax advantages.
Tax Incentives for Specific Professions
Malta provides exceptional tax incentives for certain groups to promote cultural and sports development within the island. For instance, registered professional football or water polo players, athletes, licensed coaches, and artists benefit from a significantly reduced income tax rate of 7.5% on their earnings. Such incentives are designed to attract talent in these fields and bolster Malta’s local and international cultural and sports reputation.
Reduced Rates for Part-Time Work and Overtime
Understanding the need to encourage flexible working conditions and reward extra work hours, Malta also offers reduced income tax rates for income earned from part-time work and qualifying overtime. This policy supports individuals who might be balancing multiple job roles or those extending their work hours, making part-time employment more viable and financially attractive.
But remember, once you become a Maltese citizen, you’ll be subject to the full range of taxes in Malta, including income tax, capital gains tax, and property tax. So, it’s important to be aware of these obligations and plan accordingly.
Dual Taxation Treaties in Malta
In a globalized economy, cross-border transactions can lead to the same income being taxed by multiple countries. To mitigate this, countries like Malta have established double taxation treaties. These agreements prevent the double taxation of income such as pensions, salaries, dividends, interest, and royalties, which is particularly relevant for cross-border workers, international businesses, and expatriates.
Malta has an extensive network of double taxation conventions (DTCs) based on the OECD Model Tax Convention. These treaties cover various types of income and establish rules for the taxation rights of each treaty country, ensuring that individuals and companies do not pay tax twice on the same income.
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See the full list of signed tax treaties here.
Key Aspects of Malta’s Double Taxation Treaties
Malta’s double taxation treaties extensively cover various types of income, such as dividends from foreign companies, interest from financial instruments, royalties from the use of intellectual property, and personal income derived from employment. These treaties also accommodate special categories like pensions and director’s fees.
For specific groups, such as students, trainees, entertainers, and sportspersons, Malta’s treaties include measures to prevent or reduce taxation in the host country, encouraging cultural and sports-related exchanges.
Malta primarily uses two methods to eliminate double taxation. The exemption method allows income that has been taxed in the treaty country to be exempt from Maltese tax. More commonly, however, Malta applies the tax credit method, where taxes paid abroad can be credited against the taxpayer’s Maltese tax liability. This method ensures that individuals or entities do not pay more in combined taxes than the highest tax rate of the two countries involved.
Examples of Expats Benefiting from Dual Taxation Treaties
Assume you’re an expat residing in Malta but receive employment income or a pension from Germany. Thanks to the double taxation treaty between Malta and Germany, you may be eligible for reduced withholding tax rates on this income or your pension earnings. This treaty ensures that taxes are fairly apportioned between Malta and Germany and prevents the double taxation of the same income. As a result, your overall tax burden could be significantly reduced, making your decision to reside in Malta even more financially advantageous.
Key Tax Benefits in Malta for Expats
- Favorable Residency Programs:
- Expats can choose from several residency programs, such as the Malta Retirement Program, the Global Residence Program, the Residence Program, and the United Nations Pensions Program, which offer favorable tax conditions, such as flat tax rates of 15% on foreign income remitted to Malta.
- Attractive Personal Tax Rates:
- Non-domiciled residents in Malta are only taxed on Maltese-sourced income and foreign income remitted to Malta, not on foreign income that is not brought into the country.
- Double Taxation Relief:
- Malta has extensive double taxation agreements with many countries, ensuring that income is not taxed in both Malta and the country of origin, which can significantly reduce an expat’s tax liability.
- No Wealth Taxes, Inheritance or Gift Taxes:
- Malta does not impose wealth or estate taxes, which makes it an economically sensible choice for expats looking to maximize their wealth preservation. There are also no inheritance or gift taxes in Malta, although duty on documents and transfers may apply in the case of real estate transfers.
- Retirement Benefits:
- Pensions may be taxed at beneficial rates for expatriates, depending on the source of the pension and applicable double taxation agreements.
- Capital Gains:
- Capital gains arising outside of Malta are not taxable unless remitted to Malta, providing significant tax planning opportunities.
- Entrepreneurial Benefits:
- Expats starting a business in Malta benefit from EU harmonized laws, potential grants, and incentives, including favorable corporate tax rates after refunds.
Implications of Gaining Maltese Citizenship on Taxes
Changes in Tax Obligations Post-Citizenship
Gaining Maltese citizenship does not automatically make you a tax resident or establish your domicile in Malta. Tax residency in Malta depends on whether you reside there for more than six months in a calendar year or intend to establish permanent residence.
As a tax resident, you will be subject to tax on:
- All income and capital gains originating within Malta.
- Foreign income that is remitted to Malta.
It’s important to note that foreign-source capital gains are not taxable in Malta, even if remitted to the country.
Preparing for New Tax Obligations
Before relocating to Malta, it’s crucial to strategize your taxes in advance. This is because any funds you transfer to Malta (including the payment of taxes, rent, investments, fees, goods, services, or other expenses) could be subject to taxation in Malta if the funds used are considered taxable income at the source.
Additionally, if you’re from a country like the USA or Canada, where citizens are taxed on worldwide income, it is crucial to remain compliant with your home country’s tax laws. Consulting with tax advisors is recommended, especially if you are considering expatriation.
Obtaining Maltese citizenship carries significant long-term financial benefits and responsibilities:
- Property Taxes: Properties in Malta can be sold tax-free after a five-year holding period if they have been your sole residence for at least three years. Properties sold within three years of purchase are subject to a final property tax of 12% of the selling price.
- Corporate Tax Benefits: Malta offers a favorable corporate tax rate of 35%. However, as a shareholder of a Maltese company, you may be eligible for a tax refund of 6/7ths of the tax paid by the company, effectively reducing the tax burden on distributed profits.
Are You Interested in Maltese Residency or Citizenship by Investment?
As you can see, Malta offers an enticing tax environment, especially beneficial for expatriates considering Residency by Investment or Citizenship by Investment. With the Malta Retirement Program, the Global Residence Program, the Residence Program and the United Nations Pensions Program, all offering competitive tax rates, it stands out as a good place for expatriates. On top of this, Malta’s comprehensive double taxation treaties, makes it a top destination for those looking to optimize their tax liabilities while enjoying life in a vibrant Mediterranean locale.
Understanding the complexities of tax legislation and residency requirements is crucial for those ready to take the next step toward securing their future in Malta. At Next Generation Equity, we specialize in assisting individuals in navigating these processes smoothly and efficiently. With expert advice and guidance, you can leverage Malta’s favorable tax system to your advantage, ensuring compliance and maximizing benefits as you transition to a new chapter in Malta.
Contact us for a free consultation for more information on Residency or Citizenship by Investment.
FAQ’s
Does Malta Have Favorable Taxes For Expats?
Malta’s tax system is particularly appealing to expatriates due to its several tax advantages. A key benefit is the favorable treatment of capital gains. Malta’s participation exemption regime ensures that capital gains from certain qualifying investments are tax-free. Additionally, Malta has established double taxation treaties with numerous countries. These treaties are designed to prevent double taxation, offering relief to those who reside in one country but have income or assets in another. By becoming a Maltese citizen, you can leverage these treaties to avoid being taxed twice on the same income or assets.
What is the Global Residence Program?
The Global Residence Program (GRP) is designed for non-EU, EEA, or Swiss nationals who wish to obtain a special tax status in Malta. By purchasing or renting qualifying property in Malta, participants can benefit from a favorable tax rate of 15% on foreign income received in Malta, with a minimum tax of €15,000 per year. The program allows beneficiaries to work in Malta, provided they meet necessary permit requirements, and it offers the flexibility to include household staff under specific conditions. This initiative aims to attract individuals seeking to combine residency with advantageous tax conditions in Malta.
What is the Malta Retirement Program?
The Malta Retirement Program (MRP) is designed for nationals of the EU, non-EU nationals, EEA, or Swiss nationals who wish to retire in Malta. Participants must meet specific income requirements, primarily deriving their income from pensions, which must be received in Malta. They must also purchase or rent property in Malta and cannot engage in any employment, although they may hold non-executive roles in companies. The MRP offers a favorable tax rate of 15% on foreign income remitted to Malta, with a minimum tax of €7,500 annually and an additional €500 for each dependent. This program provides a cost-effective way for retirees to enjoy Malta’s appealing lifestyle and climate.
What Does Domiciled Mean?
Individuals domiciled in Malta are those who regard Malta as their permanent home. The term “home” in this context denotes the place to which a person has the strongest ties and suggests a deeper connection with a country than merely residing there.
