Taxes as a Malta Non-Dom Resident: Low Taxation in the EU

Table of Contents

Aerial view of Valletta, Malta at sunset with historic buildings and coastline — representing the lifestyle appeal and tax advantages of Malta’s Non-Domiciled (Non-Dom) residency program

Imagine waking up to the sun-drenched shores of the Mediterranean, sipping your morning coffee while overlooking crystal-clear waters, all while enjoying one of the most favorable tax regimes in Europe. Malta, a vibrant island at the crossroads of Europe and North Africa, offers exactly this lifestyle with the added perk of almost negligible tax obligations for the right residents.

 

At the heart of this opportunity is Malta’s Non-Domiciled (Non-Dom) regime. Designed to attract international professionals, investors, and retirees, this status allows individuals to legally minimize their tax exposure while benefiting from the security and convenience of EU regulations. With personal income tax rates that can be as low as zero on foreign income, Malta combines financial efficiency with the charm of a Mediterranean paradise.

 

Beyond tax savings, Malta’s integration into the EU Single Market ensures seamless business operations, easy access to European markets, and a modern regulatory framework aligned with international standards. Whether you’re considering relocating, investing, or establishing a business, Malta Non-Dom status opens the door to a lifestyle of sun, sea, and substantial tax advantages—all in one idyllic setting.

Tax Residency in Malta

In Malta, tax residency is determined by the length of stay within a calendar year. Generally, individuals spending more than 183 days in Malta are considered tax residents.

 

However, residency can also be established through habitual residence and strong personal ties.

Stunning cliffs of Malta overlooking the Mediterranean Sea, a perfect backdrop for Malta Non-dom residents enjoying a tax-efficient lifestyle in paradise

Criteria for Determining Tax Residency

To qualify as a tax resident in Malta, you must:

 

  • Spend at least 183 days in Malta within a calendar year, or 
  • In some cases, maintain habitual residence or strong personal and economic ties to Malta.

Personal Income Tax Rates in Malta

For Single Persons:

Annual Chargeable Income Tax Rate Subtract
Up to €9,100
0%
€0
€9,101—€14,500
15%
€1,365
€14,501—€19,500
25%
€2,815
€19,501—€60,000
25%
€2,725
€60,001+
35%
€8,725

For Married Couples:

Annual Chargeable Income Tax Rate Subtract
Up to €12,700
0%
€0
€12,701—€21,200
15%
€1,905
€21,201—€28,700
25%
€4,025
€28,701—€60,000
25%
€3,905
€60,001+
35%
€9,905

For Parents:

Annual Chargeable Income Tax Rate Subtract
Up to €10,500
0%
€0
€10,501—€15,800
15%
€1,575
€15,801—€21,200
25%
€3,155
€21,201—€60,000
25%
€3,050
€60,001+
35%
€9,050

Parental income tax rates are applicable when a taxpayer has custody of a child under 18. This age limit extends to under 22 years old if the child is a full-time student at a university in Malta.

Malta Income Tax Brackets for Non-Residents

Annual Chargeable Income Tax Rate
Up to €700
0%
€701—€3,100
20%
€3,101—€7,800
30%
€7,801+
35%

Non-residents are only taxed on income generated within Malta, regardless of their marital status. The above rates may be reduced for individuals living in the European Union.

Malta Non-Dom Status

The Malta Non-Dom regime allows individuals who are not domiciled in Malta to benefit from favorable tax treatment, paying tax only on income arising in Malta or remitted to Malta rather than paying taxes on worldwide income.

 

Minimum tax of €5,000 if they have foreign income over €35,000 that has not been transferred to Malta.

Benefits for Malta Non-Dom Residents

  • Significant tax savings.
  • Exemption from worldwide income tax.
  • Reduced tax burden on foreign income.

Eligibility Criteria

To qualify, one must:

 

  • Be a non-domiciled resident in Malta.
  • Declare any foreign income remitted to Malta.

Global Residence Program

The original Malta High Net Worth Individual (HNWI) program has been discontinued and replaced by the Global Residence Program (GRP)

 

The GRP is tailored for non-EU/EEA/Swiss nationals, offering them tax advantages and residency in Malta. To qualify, applicants must either purchase property in Malta valued at a minimum of €275,000 or rent a property with an annual rent of at least €9,600. Additionally, they need to maintain health insurance and demonstrate a stable income. 

 

Under this program, participants must pay a minimum annual tax of €15,000 and cannot reside in or be considered tax residents of another country for more than 183 days in a year. Foreign income received in Malta is taxed at a flat rate of 15%, while income earned abroad but not remitted to Malta remains untaxed. Moreover, capital gains made outside Malta are not taxed, even if brought into the country

 

Applicants to the GRP must meet certain financial criteria, including a minimum annual income of €100,000 and a net worth of at least €300,000. They are also required to have a residential property in Malta, which must be available to them at all times, either through purchase or rental, but it cannot be sublet. Once the application is approved, the property requirement must be fulfilled. 

The Residence Program

The Residence Program (TRP) is identical in all aspects to the GRP except that the TRP is for EU nationals and GRP is for non-EU nationals.

 

This makes Malta one of the most attractive countries in Europe to become a resident for non-EU and EU nationals.

Malta Permanent Residence Programme 

The Malta Permanent Residence Programme (MPRP) offers non-EU nationals the opportunity to obtain permanent residency in Malta (unlike GRP, which has to be renewed every year), subject to thorough Due Diligence checks and a financial investment in the country. 

 

To qualify, applicants must either purchase or rent property in Malta, with minimum values depending on the location. For property purchases, the required minimum value is €350,000 in Malta or €300,000 in Gozo or the South of Malta. If renting, the annual lease must be at least €12,000 in Malta or €10,000 in Gozo or the South. Additionally, applicants must make a Government Contribution, which varies based on whether the property is rented or purchased, and a €2,000 donation to a local NGO.

 

To be eligible for the programme, applicants must also demonstrate a minimum net wealth of €500,000, with at least €150,000 held in liquid assets such as cash, stocks, or bonds. The required Government Contribution differs depending on the type of property investment: €28,000 for purchased properties or €58,000 for rented ones, with an additional €7,500 for each parent or grandparent included in the application. 

 

This programme allows non-EU nationals to gain Maltese residency through a combination of property investment, financial contributions, and charitable donations.

Controlled Foreign Company (CFC) Rules and Exit Tax

Malta has implemented Controlled Foreign Company (CFC) rules. However, CFC Companies and Permanent Establishments are excluded from the application of these rules if: (i) their accounting profit does not exceed EUR 750,000 and non-trading income does not exceed EUR 75,000; or (ii) accounting profits amount to no more than 10% of operating costs for the tax period.

 

Furthermore, CFC rules are not applicable when the CFC entity is resident in the European Economic Area.

 

Moreover, Malta has implemented Exit Tax rules according to ATAD 1. In this regard, exit tax rules will be triggered where (i) a taxpayer transfers assets from the head office or a permanent establishment in Malta to a permanent establishment or a head office outside Malta; (b) a taxpayer becomes tax resident in another state, provided that their assets will not be effectively connected to a permanent establishment in Malta; (iii) a taxpayer transfers the business carried on by its permanent establishment from Malta to another state.

 

Tax Payments can generally be deferred when relocating to third countries that are party to the European Economic Area Agreement if they have concluded an agreement with the Member State of the taxpayer or with the Union on the mutual assistance for the recovery of tax claims, equivalent to the mutual assistance provided for in Directive 2010/24/EU.

Double Tax Treaties:

Malta has signed 81 Double Tax Treaties (DTTs) with different jurisdictions across the globe.

 

These DTTs provide mechanisms for the elimination or reduction of double taxation on various types of income including, dividends, interests, and royalties making Malta an attractive jurisdiction for international tax planning strategies.

Social Security Contributions

Malta Social Security Rates

Social security contributions in Malta are mandatory for both employers and employees, ensuring a robust social security system that provides various benefits, including healthcare and pensions.

Contributions to Employees and Employers

Employees contribute 10% of their gross earnings, while employers also contribute 10% of the employee’s gross earnings. These contributions enhance the sustainability of Malta’s social security system.

Self-Employed Contributions

Self-employed individuals are also required to contribute to social security at varying rates, typically around 15% of their declared income.

How Can We Help You?

Malta’s favorable tax rates, coupled with its comprehensive legal framework and strategic location, have contributed to its reputation as a legal tax haven. This is because, along with Spain and Cyprus offers one of the best special tax regimes for individuals in the European Union. 

 

Furthermore, Malta’s exemption from inheritance tax makes it highly favorable for estate planning, appealing to those aiming to safeguard wealth for future generations. Although no inheritance tax exists, minimal duties like stamp duty may apply in certain cases, especially for real estate transactions.

 

For expert help with understanding Malta’s tax residency and taxation rules and to improve your tax planning strategies please request your free initial consultation with TaxMove today. 

Submit the form to get tailored advice from our experts

What is Malta Non-Dom tax regime?

Malta’s non-domiciled (Non-Dom) tax regime benefits expatriates by taxing only their Maltese-sourced income or income remitted to Malta, not their worldwide income.
 
Non-Doms with foreign income over €35,000 not brought into Malta pay a minimum tax of €5,000.
 
This regime offers significant tax savings and reduced tax burdens on foreign income.

How is tax residency determined in Malta?

Tax residency in Malta is determined by spending at least 183 days in the country within a calendar year. Residency can also be established through habitual residence and strong personal or economic ties to Malta.

What is the Temporary Residence Program (TRP) in Malta?

The TRP allows non-EU nationals to reside in Malta on a temporary basis. Applicants must meet certain income, health insurance, and property requirements. It is often used as a stepping stone to longer-term residency or tax planning under the non-domiciled regime. 

What is the Malta Global Residence Program (GRP)?

The GRP provides residency for non-EU nationals who purchase or rent property in Malta and maintain a stable income. Participants benefit from favorable taxation, paying a minimum annual tax of €15,000, while foreign income not remitted to Malta remains untaxed.

What is the Malta Permanent Residence Program (MPRP)?

The MPRP grants permanent residency to non-EU nationals, offering life-long residency without citizenship. Applicants must make qualifying property investments and government contributions. It provides visa-free access to the Schengen Area and is ideal for long-term tax planning.

What are the personal income tax rates in Malta?

In Malta, personal income tax rates for single persons range from 0% to 35%, based on annual chargeable income. For married couples, the rates also range from 0% to 35%, but with different income brackets. Parents with custody of children benefit from slightly different brackets and rates.
 
Non-residents are taxed only on income generated within Malta, with rates from 0% to 30%.
Scroll to Top

Thank you for your message!

A member of our team will get in touch with you shortly.

TaxMove logo principal

Transfer Pricing

TaxMove provides comprehensive transfer pricing services designed to meet the diverse needs of multinational corporations.

We conduct detailed functional, risk, and economic analyses to establish fair transfer pricing policies, ensuring that all intercompany transactions align with the arm’s length principle.

By leveraging our extensive experience and cutting-edge analytical tools, we assist your firm in mitigating risks, optimizing tax positions, and achieving strategic financial objectives.

Our transfer pricing services encompass the full spectrum of documentation, planning, and dispute resolution. We prepare robust transfer pricing documentation that meets the requirements of tax authorities worldwide, helping you avoid penalties and audits. Our planning services are aimed at optimizing your global tax strategy, considering both current operations and future growth.

Citizenship and Visa Application Assistance

Navigating the citizenship and visa application processes can be complex and time-consuming. 

At TaxMove, our global network provides comprehensive support to help you and your team secure the necessary citizenship and visas for business travel, relocation, and long-term stays.

Our expertise ensures a hassle-free experience, allowing you to focus on your business goals.

Entity Incorporation

Whether you’re looking to establish a new business entity or restructure an existing one, we offer end-to-end support for entity incorporation through our global network. 

Our services include selecting the optimal jurisdiction, handling all necessary paperwork, and ensuring smooth setup and operation.

VAT Advice and Compliance Services

We provide comprehensive VAT advisory services tailored to meet the needs of businesses across various sectors.

Our expertise extends to assisting those operating dropshipping businesses and selling through Amazon FBA, ensuring you remain compliant with VAT regulations in multiple jurisdictions.

We offer personalized guidance to optimize VAT processes, manage cross-border transactions, and minimize liabilities.

We also offer comprehensive VAT compliance services across more than 20 countries, ensuring that your business remains fully compliant with local tax regulations, no matter where you operate. We manage the entire process, from VAT registration to ongoing compliance, allowing you to focus on your core business activities.

Additionally, we take care of your registration in the OSS (One Stop Shop), simplifying your VAT obligations for cross-border sales within the EU

With our tailored solutions, you can confidently expand your global presence, knowing that your VAT obligations are in expert hands.

Application for Special Tax Regimes

We assist individuals in various jurisdictions with the application for special tax regimes designed to optimize their tax obligations. This includes the Spanish Beckham Law, Cyprus and Malta Non-Dom special tax regime among others.  

Our experts navigate the complexities of different tax regimes to ensure our clients benefit from favorable tax treatment while remaining compliant with local regulations.

Tax Residency Change Assistance

Considering a change in tax residency? We are here to help. 

Our team will guide you through the process, providing expert advice and assistance to ensure a smooth transition to your new tax “home.”

International Estate and Gift Tax Planning

Protecting your wealth and assets for future generations requires careful planning.

Our international estate and gift tax planning services help you minimize tax liabilities and ensure a smooth transfer of wealth to your beneficiaries.

International Tax Planning and Structuring Services

Our team of experts specializes in delivering customized tax advice to individuals and businesses.

We excel in crafting tax strategies that not only optimize financial outcomes but also ensure strict compliance with international regulations.

Our strategic guidance is aimed at minimizing tax liabilities and maximizing efficiency for our clients.

Whether you plan to expand your business into a new jurisdiction or just reduce your tax burden, TaxMove is here to support you every step of the way

×