Taxes in Malta: rates, non-dom, and special regimes for individuals and business

Why Malta's tax system is structured this way

Malta built its economy on two things: EU membership and a tax system that looks high on paper and mild in practice. The nominal corporate rate is one of the highest in Europe (35%), but the real burden for foreign business often drops to 5%. This gap isn't a loophole, but a legal full imputation mechanism, in effect since the 1990s and repeatedly confirmed by the European Commission.

For individuals the logic is similar. The concept of domicile - the country a person considers their permanent home - plays a key role. Most foreigners who relocate to Malta are residents but NOT domiciled persons (non-dom). This opens access to remittance-basis taxation: foreign income is taxed only if the money is physically brought into Malta.

Add to this the absence of inheritance, gift, and wealth tax, a developed network of more than 70 double taxation avoidance treaties, and a stable euro currency - and it becomes clear why Malta is chosen by holdings, funds, IT and gaming companies, and wealthy families. Below we break down each element separately.

Malta tax residency: how it's determined

Malta tax residency is the starting point for the whole calculation. A resident is a person physically present in the country and intending to reside there. There's no formal «183-day» rule in law as strict as in other countries, but in practice staying over 183 days in a calendar year almost always makes you a tax resident.

It's important to distinguish three statuses, since they determine which income falls under Maltese tax at all:

• Resident and domiciled- pays tax on their entire worldwide income, like a regular citizen.
• Resident but not domiciled (non-dom)- pays on Maltese income and only on foreign income remitted to the country (remittance basis).
• Non-resident- pays only on income from sources in Malta.

Domicile of origin almost always coincides with the father's country of origin and changes extremely rarely - this requires actually and permanently severing ties with the former homeland. So the vast majority of expats retain non-dom status for a long time. Residency can be obtained and maintained through work, business, or the permanent residency programmeMPRPor a visadigital nomad.

Income tax in Malta for individuals

Tax in Malta for individuals is progressive: the higher the income, the higher the rate, from 0% to a maximum of 35%. The top rate kicks in on amounts over 60,000 euros a year. The scale depends on marital status - separate brackets for singles, married people, and parents.

Basic rates for a single resident for 2026 (approximate, figures confirmed by the annual budget):

For married couples the tax-free minimum is higher - the first 15,000 euros at 0%, and for parents with children the threshold is even higher (up to 18,500-22,500 euros depending on the number of children). A resident and domiciled person pays on this scale on their entire worldwide income. A resident non-dom applies the scale only to Maltese income and remitted foreign income. Dividends from a Maltese company after the imputation system usually don't create additional tax for the recipient - more on this below.

The non-dom regime: unremitted foreign income isn't taxed

Malta non-dom is the main tool for wealthy relocators. If you're a tax resident but not domiciled, foreign income (dividends, interest, rent, salary abroad) is taxed by Malta ONLY when this money is transferred to Malta. Keep income abroad - and it stays outside Maltese tax. Moreover, foreign capital gains aren't taxed, even if you bring the funds to the island.

Since 2025 a minimum tax applies for ordinary non-doms (outside special programmes): 5,000 euros a year, if combined foreign income outside Malta exceeds 35,000 euros and isn't fully remitted to the country. If foreign income is under 35,000 euros, the minimum tax doesn't apply. This makes the regime predictable: you know the floor of the burden in advance.

Who this suits:

• investors living on dividends and interest from foreign portfolios;
• entrepreneurs with business outside Malta;
• those receiving rental income from other countries.

We've put together a detailed breakdown of the mechanics, remittance accounting nuances, and the link to bank accounts in a separate article onMalta's non-dom regime.

Corporate tax: 35% on paper, ~5% in reality

Malta's corporate tax rates are the jurisdiction's most well-known feature. The company pays 35% on profit, but Malta applies a full imputation system: the tax paid by the company is credited to the shareholder upon dividend distribution. After the dividend is paid, a non-resident shareholder has the right to reclaim 6/7 of the tax paid. As a result the effective rate drops to about 5%.

Let's show it with figures. The company earned 100,000 euros in profit:

• pays 35% tax - 35,000 euros;
• distributes the remaining 65,000 euros as dividends;
• the shareholder gets a 6/7 refund of 35,000 - that's 30,000 euros;
• in the end 5,000 euros remains in Malta, that is an effective 5%.

The refund size depends on the income type: 6/7 - for active trading profit, 5/7 - for passive interest and royalties, 2/3 - when a double taxation avoidance treaty credit has been applied. For passive income the effective rate comes out above 5%. An in-depth breakdown of the refund scheme - in our guide onMalta's corporate tax.

The Global Residence Programme: a flat 15% on remitted income

The Global Residence Programme (GRP) is a tax regime for citizens of countries outside the EU/EEA/Switzerland. Foreign income remitted to Malta is taxed at a flat 15% rate (with the possibility of applying tax treaty relief). A minimum annual tax applies - 15,000 euros for the whole family.

Entry conditions:

• buying real estate from 275,000 euros OR renting from 9,600 euros a year (thresholds lower in south Malta and Gozo);
• stable income and medical insurance;
• no simultaneous participation in other preferential regimes.

GRP doesn't require permanent residence and gives freedom of movement within Schengen, but the person mustn't spend more than 183 days in one other country. Income from Maltese sources is taxed at the regular progressive scale (up to 35%). This regime is chosen by families who want to legally fix a tax base in the EU with a predictable flat rate.

The Malta Retirement Programme: a regime for retirees

The Malta Retirement Programme is designed for those living on a pension from abroad. Pension income remitted to Malta is taxed at a flat 15% rate - also with the possibility of applying double taxation avoidance treaty relief. This makes Malta attractive to wealthy retirees from Europe and other regions.

Basic requirements:

• the main income source is a pension remitted to Malta;
• owning or renting qualifying real estate on the island;
• medical insurance covering the entire EU;
• minimal physical presence in Malta and a limit on days in other countries.

A minimum annual tax applies. The regime is convenient because it fixes a 15% rate specifically on the pension flow, leaving other Maltese income under the regular scale. For couples with foreign pensions this is often more beneficial than standard non-dom, especially when the pension needs to be brought to the island for living anyway.

Highly Qualified Persons: 15% for top specialists

The Highly Qualified Persons Rules (HQP) are a targeted regime for highly qualified specialists and executives hired by Maltese companies in priority sectors: finance, insurance, aviation, the gaming industry (iGaming), blockchain. Their income from the qualifying position is taxed at a flat 15% rate instead of progressive rates up to 35%.

Key parameters:

• a minimum annual salary above the set threshold is required (it's indexed);
• a contract with a licensed Maltese employer in a recognized sector;
• the preferential rate applies for a limited number of years, renewable.

Income above the upper limit may be taxed differently, and part of earnings outside the regime's scope goes on the regular scale. HQP is Malta's tool for attracting management and technical talent: the company gets a specialist, and the specialist gets a predictable 15% on the base salary. This regime often works together with registering a business on the island, which we cover in our article onopening a company in Malta.

A comparison of tax regimes: regime - rate - who it's for

To avoid confusion, let's put Malta's main tax regimes into one table. Important: you can't participate in several preferential programmes at once - you need to choose one strategy for your profile.

The choice depends on the income structure: a passive portfolio leans toward non-dom, an active pension - toward the Retirement Programme, employment in a priority sector - toward HQP. Selecting the optimal scenario is helped by linking it with thethe tax page on Malta.

No inheritance, gift, or wealth tax

One of Malta's most underrated advantages is the complete absence of inheritance, gift, and wealth (net wealth tax) taxes. This fundamentally distinguishes the island from France, Spain, or Germany, where transferring assets to heirs can be taxed at high rates.

What this means in practice:

• transferring property to heirs doesn't create a Maltese inheritance tax;
• gifting assets between family members isn't subject to a special gift tax;
• merely owning large capital, real estate, or a portfolio doesn't generate an annual wealth tax.

The only significant levy on transferring real estate is stamp duty. When inheriting residential real estate, a preferential rate of 3.5% applies on the first 400,000 euros of value (the threshold was raised in the 2026 budget). For wealthy families planning capital succession, the absence of an inheritance tax makes Malta a convenient jurisdiction for long-term family planning within the EU.

VAT, stamp duty, and property taxes

VAT in Malta is a standard 18%, one of the lowest base rates in the EU. Reduced rates apply for certain categories (e.g., housing rental and certain services) and zero for exports. At the same time, buying and selling real estate isn't subject to VAT - it's an exempt operation with no right of deduction.

But stamp duty arises when buying real estate:

• 5%of the property's value in mainland Malta;
• 2%- on the island of Gozo (a preferential rate for regional development).

A foreigner needs AIP permission (Acquisition of Immovable Property) to buy housing outside the Special Designated Areas (SDA). In SDA zones - elite complexes - buying is free with no restrictions and no AIP. Upon selling real estate a final withholding tax usually applies, typically 8% of the sale price, with a number of exceptions for a main home. These payments should be budgeted for when planning a real estate investment through the programmeMPRP.

Pillar Two: what changes for large groups

Since January 1, 2026, global minimum tax rules (Pillar Two / ATAD) took effect, which Malta implemented via a Qualified Domestic Minimum Top-up Tax (QDMTT) and an optional final 15% tax. This is an important nuance for those planning structures on the island.

The main thing to understand:

• the rules apply ONLY to large multinational groups with consolidated revenue from 750 million euros a year;
• for such groups the classic effective-5% scheme may not pass the minimum tax test - it's more logical for them to choose the final 15% rate;
• for medium-sized businesses, startups, holdings, and private investors below this threshold everything stays unchanged - the 6/7 refund system works as before.

In other words, Pillar Two is a story about giant corporations, not about an entrepreneur opening a trading or IT company. The vast majority of clients don't fall into this bracket and continue to use the full imputation mechanism. But when planning a large international group, this factor needs to be calculated in advance together with a consultant.

Taxes and business: iGaming, crypto, holdings, yachts

The tax system is just part of Malta's appeal for business. The island has become a European hub for several industries at once, and the tax regimes work together with industry regulation:

• iGaming- Malta was the first in the EU to license online gambling (MGA license); the sector generates a noticeable share of GDP.
• Crypto and blockchain- the VFA regime («Blockchain Island») plus pan-European MiCA; crypto companies combine it with the corporate refund.
• Holdings and funds- participation in subsidiaries is often tax-exempt (participation exemption), which makes Malta convenient for holding structures.
• Shipping and yachts- Europe's largest ship registry and special rules for yacht leasing.

For all these areas the base is the same logic: nominal 35% with a 6/7 refund to the shareholder plus industry relief. This allows legally maintaining the effective burden at around 5% while fully complying with EU rules. Such a business should be structured together with specialists - factoring in economic presence (substance) requirements on the island.

Russians and compliance: what matters

Malta is available to citizens of Russia and Belarus, but with caveats, and honesty matters here. A Schengen visa is needed for entry. Under investment and residency programmes (including MPRP permanent residency), since 2022 the EU and Malta have tightened application intake from citizens of Russia and Belarus as part of sanctions policy, and the source-of-funds check (compliance) has become stricter.

What this means in practice:

• all procedures are strictly legal - no circumvention of sanctions;
• an enhanced check of the source of capital and a transparent financial history are required;
• review timelines may be longer due to additional scrutiny;
• certain programmes may be temporarily unavailable or restricted.

Malta's tax regimes (non-dom, GRP, corporate refund) don't by themselves depend on citizenship - they're tied to residency and domicile status. But the path to obtaining this status for Russian/Belarusian citizens requires careful document preparation and a realistic assessment of chances. Before starting it's always worth checking against the current official requirements on the portalgov.mt.

Malta's taxes in 2026: the main points in brief

Let's put together the picture of Malta's 2026 taxes in a condensed form, for easy reference. The system remains one of the most flexible in the EU, and this year's changes mainly affect large international groups.

• Individuals:a progressive income tax of 0-35%, the top rate from 60,000 euros; a resident-domiciled person pays on worldwide income, non-dom - on a remittance basis.
• Non-dom:unremitted foreign income isn't taxed; a minimum of 5,000 euros/year with foreign income over 35,000 euros.
• 15% special regimes:GRP (min. 15,000 euros), the Retirement Programme, Highly Qualified Persons.
• Business:35% nominal, effectively ~5% after the 6/7 refund to the shareholder.
• Pillar Two:from 2026 a final 15% for groups with revenue from 750 million euros; doesn't affect others.
• Other:18% VAT, a 5% stamp duty on buying real estate (2% Gozo), no inheritance or wealth tax.

The right strategy depends on the structure of your specific income and goals - there's no universal answer. BRIDGES GLOBAL's experts will help break down your case and select the optimal regime:leave a request for a consultation, and we'll calculate your tax burden in Malta.

How we check a client's tax scenario

Tax planning in Malta isn't about choosing the «lowest rate», but building a structure that withstands scrutiny from the tax authority, the bank, and European regulators alike. So we start the work not with the programme, but with an audit of the client's income: where the money comes from, in which country the tax base arises, whether there's a double taxation avoidance treaty with Malta.

Next we check three things: whether non-dom status (domicile) holds, whether the remittance principle can genuinely be applied to specific flows, and whether the business falls under Pillar Two thresholds. For entrepreneurs we separately calculate the effective rate factoring in the refund type (6/7, 5/7, or 2/3) and presence requirements on the island. We check all figures and thresholds against official sources and current budget measures, not outdated articles.