Malta Tax Rates
Malta offers one of Europe's most competitive effective corporate tax rates through its imputation system: while the headline rate is 35%, shareholders receive a 6/7ths refund on distributed profits, resulting in an effective rate of approximately 5%. The island nation features progressive personal income tax up to 35%, an 18% standard VAT, and attractive residency programs for expatriates including the Global Residence Programme and Malta Retirement Programme.
Top Income Tax Rate
35%
Corporate Tax Rate
35%
VAT / Sales Tax
18%
Capital Gains Tax
35%
Detailed Tax Information
Income Tax Brackets
Malta applies progressive income tax rates from 0% to 35%. Different rate scales apply depending on filing status: single, married, and parent. Malta uses a remittance basis for non-domiciled residents, who are taxed only on Malta-source income and foreign income remitted to Malta. A minimum annual tax of €5,000 applies to non-dom residents under certain programmes.
| Income Range | Tax Rate |
|---|---|
| €0 – €9K | 0% |
| €9K – €15K | 15% |
| €15K – €20K | 25% |
| €20K – €60K | 25% |
| €60K+ | 35% |
Corporate Tax
Malta's headline corporate tax rate is 35%, but its imputation system provides tax refunds to shareholders. When profits are distributed, shareholders receive a 6/7ths refund (for trading income), resulting in an effective tax rate of approximately 5%. This full imputation system eliminates double taxation and makes Malta one of Europe's most tax-efficient jurisdictions for international businesses.
Standard Rate
35%
Capital Gains Tax
Capital gains are generally taxed at the standard income tax rate (up to 35%). However, real estate transfers are subject to a final withholding tax of 8% on the transfer value (12% for property held less than 5 years). Gains on listed securities are generally exempt. Non-domiciled residents are not taxed on foreign capital gains not remitted to Malta.
Rate
35%
VAT / Sales Tax
Malta applies a standard VAT rate of 18%, with reduced rates of 7% and 5%, plus zero-rating for essential food and medicines. Malta's 18% standard rate is the lowest in the EU after Luxembourg.
Standard Rate
18%
Cryptocurrency Tax
Malta has established a regulatory framework for digital assets through the Virtual Financial Assets (VFA) Act. For tax purposes, crypto gains are treated based on the nature of the asset and activity. Trading profits are taxed at progressive income tax rates. For non-domiciled residents, foreign crypto gains not remitted to Malta are not taxed.
Tax Treaties
Malta has approximately 76 double taxation treaties in force. As an EU member and international financial center, Malta's treaty network is extensive relative to its size.
Treaty Network
76
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Malta
See how much you could save by moving here from your current country.
$-11,822
Tax in United States
$24K
24.4% effective
Tax in Malta
$36K
36.2% effective
Additional Cost
48.5%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
