1. Low flat tax rate & minimum tax
A flat rate of 15% is
chargeable on all income (less personal allowances) received in, or
remitted to, Malta from either local or foreign sources. This is subject
to a minimum payment of EUR4,230 (approx. US$4,900) per annum.
In the absence of significant
remittances of income, it may be more feasible to opt for the
Ordinary
Residence Scheme which imposes
no minimum tax liability.
- See
Taxation of Pensions for Non-Doms

2. Remittance only basis of tax
Non-domiciled foreign holders of a PR permit in
Malta are taxable on a remittance basis only on income and not foreign
source capital remitted to Malta and on income and capital gains arising
in Malta.
3. Capital gains
Income not remitted (transferred) to the PR’s Malta
bank account and capital gains (whether remitted or otherwise) fall
outside the scope of Maltese tax. Capital/savings remitted to Malta also
fall outside the scope of Malta tax.
4 . Double taxation relief
Malta enjoys
43 double
tax treaties, persons who take up residence in Malta can receive their
pensions in Malta free of tax at source and subject to a mere
15%.
Overseas capital funds
invested locally are of course only taxed on any interest or dividends
generated thereon, again at a 15% flat rate. Permanent residents also
benefit from double taxation agreements existing between Malta, most
European countries, Canada, Australia and the USA, ensuring that tax is
never paid twice upon the same income.
5. Tax Payments & Deadlines
First payment of Tax:
For applications filed after 1st May 2004,
the minimum tax of EUR4,230 (approx. US$4,900) is payable provisionally in advance to the
Commissioner for Inland Revenue within 30 days of approval.
The Residence Certificate will only be issued upon presentation of a tax
receipt confirming payment.
Second payment of Tax: This will be due after the second
year of residence. If the application is not accepted, the tax will be
refunded within fourteen days. The tax so paid in advance will be credited
to the applicant’s tax liability for the year in which residence is
actually taken up.
- See
Malta's Double Tax Treaty Network

6.
Full Exemption from Customs Duty/VAT
Your used household and
personal effects, furniture and other domestic articles (excluding
firearms and weapons of all kinds) may be imported free of import duty if
imported within six months of your arrival in Malta to take up residence.
In such cases import licenses are not required.
Click here for more info about
importation of motor vehicles.
7. Other tax considerations
-
No inheritance tax
-
No estate duty
-
No wealth tax
-
No municipal
taxes
-
No rates
-
Stamp duty is
payable by the acquirer on the transfer of immovable property situated in
Malta and transfers of shares in Maltese companies (including transfers on
death).
-
Exemptions
from stamp duty may be available on the transfer of shares in certain
Maltese companies, e.g. if the company is listed on the Malta Stock Exchange
or if the vast majority (at least 90%) of its business interests are outside
Malta.
For more information about the Malta
Residence Scheme for non-domiciliaries / non doms, click
on the links on the left hand menu of this page.