Country topic
Tax in Malta
The Income Tax Act taxes income “accruing in or derived from Malta or elsewhere”, but for income arising outside Malta to a person who is not ordinarily resident in Malta or not domiciled in Malta, tax is payable on the amount received in Malta. The same persons pay no tax on capital gains arising outside Malta. This is the remittance basis. [T1] A private firm’s summary says Malta has few specific rules on residence, ordinary residence, domicile or the remittance of income. It says people are usually held to be domiciled where they have a permanent home, ordinarily resident when resident in the ordinary course of their lives, and that whether income was remitted to Malta is a question of fact. Day-count tests are not stated there; ask an adviser about your case. [T2]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- The Income Tax Act taxes income “accruing in or derived from Malta or elsewhere”, but for income arising outside Malta to a person who is not ordinarily resident in Malta or not domiciled in Malta, tax is payable on the amount received in Malta. The same persons pay no tax on capital gains arising outside Malta. This is the remittance basis. [T1]
- A private firm’s summary says Malta has few specific rules on residence, ordinary residence, domicile or the remittance of income. It says people are usually held to be domiciled where they have a permanent home, ordinarily resident when resident in the ordinary course of their lives, and that whether income was remitted to Malta is a question of fact. Day-count tests are not stated there; ask an adviser about your case. [T2]
- The consolidated Income Tax Act sets, from the year of assessment 2027, these rates for an individual with no family circumstances that change the table: 0% up to €12,000, 15% from €12,000 to €16,000, 25% from €16,000 to €60,000 and 35% above €60,000. Married couples and parents have different tables. Rates for earlier years are not covered here. [T1]
- The Nomad Residence Permits (Income Tax) Rules charge a permit holder 10% on income from authorised work: remote work under a contract of employment with an employer not resident in Malta, or services for clients not resident in Malta, by telecommunications. That income counts as the first part of the person’s income, and pay from employment is outside the Final Settlement System. Other income is governed by the Income Tax Act. [T3]
- Under the nomad rules a holder is not liable on authorised-work income for 12 months from the permit or 1 January 2024, whichever is later, unless they file a declaration that their residence is not merely casual; they must still register for tax. Proof of foreign tax paid at 10% or more settles the Maltese tax through double tax relief. The Agency says a permit does not by itself entitle someone to this treatment, requires a tax compliance declaration at the second and third renewals, and gives no tax advice. Family members’ income stays under the ordinary Act. [T3] [T4]
- Under the Global Residence Programme Rules (in force since 2013, last amended 2020), a third-country national with special tax status pays 15% on foreign income received in Malta, with a minimum tax of €15,000 a year, and 35% on other income. It needs a home bought for about €220,000 to €275,000 (the lower figure in Gozo or the south; to be safe, more than €280,000) or rented for about €8,800 to €9,600 a year (to be safe, more than €9,700), sickness insurance and a €6,000 fee (€5,500 for an owned property in the south). It is a tax status, not a residence permit. [T5]
- The Individual Tax Programme Rules, 2026 (L.N. 195 of 2026) start on 1 January 2027 and replace these schemes with four statuses: global resident, EU/EEA/Swiss resident, retired pensioner and UN pensioner. Global residents pay 15% on foreign income received in Malta with a minimum tax of €35,000 a year, an €8,500 fee, and a home bought for €700,000 or rented for €14,000 a year. Status lasts 5 years and renews for €2,500; it ends after more than 183 days in another jurisdiction in a calendar year. Status granted, or applications received, up to 31 December 2026 continue to 31 December 2031. [T6]
- Retired pensioner status needs a pension, all received in Malta, of at least 75% of chargeable income. The minimum tax is €15,000 a year from 2027 (€7,500 plus €500 per dependant under the 2020 Malta Retirement Programme guidelines, which also asked for a €2,500 fee), against 15% on foreign income received in Malta. Which terms apply depends on when the status is granted. [T6] [T7]
- US citizens abroad generally file US returns as they would at home, on worldwide income. The IRS lists an income tax treaty with Malta (with a 2008 technical explanation). Treasury lists a Malta agreement for Australia, signed 9 May 1984 and in force from 20 May 1985. New Zealand Inland Revenue’s list of agreements in force does not include Malta. Canada is not checked here, and whether a treaty relieves a given person is unknown. [T8] [T9] [T10] [T11]
The country
More on Malta.
Topics
More about Malta.
Questions about Tax in Malta.
Will I pay tax in Malta on income from abroad?
The Income Tax Act taxes foreign income of someone not ordinarily resident or not domiciled in Malta only on the amount received in Malta, and charges no tax on their foreign capital gains. A private firm says Malta has few set rules on residence and domicile, and remittance is a question of fact. Ask an adviser.
What are Malta’s income tax rates?
From the year of assessment 2027 the Income Tax Act sets, for an individual with no family circumstances changing the table, 0% up to €12,000, 15% to €16,000, 25% to €60,000 and 35% above. Couples and parents have different tables. Rates for earlier years are not covered here.
How is income taxed under the Malta nomad permit?
The Nomad Income Tax Rules charge 10% on income from authorised remote work, with no liability for the first 12 months unless you declare your residence is not casual, and relief for foreign tax paid at 10% or more. The Agency says a permit does not itself entitle you to this rate and gives no tax advice.
What are the Global Residence Programme and Malta Retirement Programme?
Special tax statuses charging 15% on foreign income received in Malta, with minimum tax (€15,000 a year for the Global Residence Programme, €7,500 for retirement) and a qualifying home. From 1 January 2027 the Individual Tax Programme replaces them, with minimums of €35,000 and €15,000; earlier grants run to 2031.
Does Malta have tax treaties with the US, Canada, Australia and New Zealand?
The IRS lists an income tax treaty with Malta, and Treasury lists a 1984 agreement for Australia. New Zealand’s list of agreements in force does not include Malta. Canada is not checked here. US citizens abroad generally still file US returns on worldwide income. Ask an adviser how a treaty applies to you.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Income Tax Act (Cap. 123), consolidated text, articles 4 and 56, Government of Malta, Legislation Malta (legislation.mt). Checked 16 October 2026. PDF read on 16 October 2026; amendments listed up to Act III of 2026. Article 4(1)(g) provisos (i) and (ii); article 56(1)(b)(i), marked as applicable from the year of assessment 2027 (Act III of 2026, article 13(2)).
- [T2] Malta: Individual - Residence, PwC Worldwide Tax Summaries (private firm, not an official site). Checked 16 October 2026. A private firm's summary: few specific rules on residence, ordinary residence, domicile or remittance; domicile is usually where a person has a permanent home; ordinary residence is residence in the ordinary course of life; remittance of income to Malta is a question of fact.
- [T3] Nomad Residence Permits (Income Tax) Rules, S.L. 123.210 (L.N. 277 of 2023), Government of Malta, Legislation Malta (legislation.mt). Checked 16 October 2026. PDF read on 16 October 2026.
- [T4] Nomad Residence Permit: FAQs (version 14.1, updated 17 April 2026), Residency Malta Agency (nomad.residencymalta.gov.mt). Checked 16 October 2026. Read on 16 October 2026. Dependants, fees, renewals, health insurance, tax, work and card pages of the Agency's FAQs.
- [T5] Global Residence Programme Rules, S.L. 123.148 (L.N. 167 of 2013, amended by L.N. 267 of 2014 and L.N. 69 of 2020), Government of Malta, Legislation Malta (legislation.mt). Checked 16 October 2026. PDF read on 16 October 2026.
- [T6] Individual Tax Programme Rules, 2026 (L.N. 195 of 2026), Government of Malta, Legislation Malta (legislation.mt). Checked 15 October 2026. The official text (PDF) read on 15 October 2026. In force 1 January 2027; special tax status in four categories including 'retired pensioner status'; status lasts 5 years and may be renewed for further 5-year periods (renewal fee EUR 2,500); application fee EUR 8,500; 15% on foreign income received in Malta; minimum tax EUR 15,000 a year for retired pensioners (EUR 35,000 for global and EU, EEA, Swiss residents); a qualifying property is one bought for at least EUR 700,000 or rented for at least EUR 14,000 a year; a retired pensioner's pension must be at least 75% of chargeable income, received in Malta. Status granted, or applications received, up to 31 December 2026 continue until 31 December 2031.
- [T7] Malta Retirement Programme Guidelines, version 4.0 (2020), Commissioner for Revenue (now Commissioner for Tax and Customs), Malta. Checked 15 October 2026. cfr.gov.mt refused automated access (HTTP 403), so the guidelines (16 pages) were read from an Internet Archive copy (the nearest capture to 2025; the Archive's catalogue lists one of 6 August 2024). Under LN 317 of 2012: a special tax status for people whose pension, received in Malta, is at least 75% of chargeable income; no age minimum; property owned (EUR 275,000, or EUR 220,000 in Gozo or the south) or rented (EUR 9,600 a year, EUR 8,750 in Gozo or the south) as principal residence; 15% tax on foreign income received in Malta, minimum tax EUR 7,500 plus EUR 500 per dependant; administrative fee EUR 2,500; no right to employment in Malta beyond a non-executive board post. It is a tax status, not a permanent residence right.
- [T8] US citizens abroad: filing requirements, Internal Revenue Service. Checked 15 October 2026.
- [T9] Malta tax treaty documents, Internal Revenue Service. Checked 16 October 2026. Page last reviewed 9 August 2026; lists an income tax treaty and its 2008 technical explanation.
- [T10] Income tax treaties (list of Australia's treaties), Australian Government, Treasury. Checked 16 October 2026. Page last updated 24 March 2026. Lists a Malta double tax agreement signed 9 May 1984 and in force from 20 May 1985.
- [T11] Tax treaties: double tax agreements in force, New Zealand Inland Revenue (Tax Policy). Checked 16 October 2026. The list of agreements in force does not include Malta.