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Understanding Personal Income Tax in Malta
Malta’s personal income tax system is built on two key pillars: residence and domicile. These determine whether your income is taxable in Malta, and on what basis.
- Residence is based on your physical presence and ties to Malta. You are considered resident in Malta if you spend more than 183 days in a calendar year in the country and maintain connections such as a permanent home, business activity, or family.
- Domicile refers to the country you consider your permanent home. While not formally defined in Maltese tax law, it is generally determined by origin or choice and has long-term legal implications. The domicile of origin typically follows the domicile of the father, or in his absence, the domicile of the mother.
Your combined residence and domicile status dictates the basis of taxation in Malta.
At A2CO, we provide expert guidance on determining your tax position and managing your exposure under Malta’s tax system.
When Income Is Taxable Under the Malta Tax System
Malta applies different rules depending on whether you are resident and domiciled, resident but not domiciled, or neither. Your personal income tax liability is assessed accordingly.
- If you are resident and domiciled in Malta, your worldwide income and capital gains are subject to income tax in Malta.
- If you are a resident in Malta but not domiciled, you are subject to tax on income and chargeable gains arising in Malta, as well as on foreign-source income that is remitted to Malta. However, capital gains that arise outside Malta are not taxable, even if they are remitted to Malta
- If you are neither resident nor domiciled in Malta, you are only taxed on income arising in Malta, unless otherwise exempt.
Specific rules apply where individuals are married:
- If you are resident in Malta but not domiciled, and your spouse is resident and domiciled in Malta, your worldwide income will also become subject to income tax in Malta.
In addition, individuals taxed on the remittance basis and earning over €35,000 globally are subject to a minimum tax of €5,000 per year.
Personal Income Tax Rates in Malta
Progressive Tax Rates for Residents
Malta applies progressive tax rates to individuals based on marital and parental status. The rates of income tax vary each year, and apply to annual chargeable income.
-
Married rates are available for two partners who have registered their partnership as a civil union and live together; the spouses may opt for a joint assessment and use the married rates. In some cases, single parents may also apply these rates, depending on their eligibility.
-
Parent rates apply to individuals who are supporting a dependent child under 18, or under 23 if in full-time education and not earning more than €3,400 per year.
-
Single rates apply to individuals who do not qualify for either of the above categories.
2025 TAX RATES - Chargeable Income (€)
Important notice:
Following the 2026 Budget presented by the Minister for Finance in October 2025, the married and parent tax rate brackets for the basis year 2026 are set to be amended. These updates will take effect once the relevant legislative changes are enacted.
Single Rates
|
From |
To | Rate | Subtract |
| 0 | 12,000 | 0% |
0 |
| 12,001 | 16,000 | 15% |
1,800 |
| 16,001 | 60,000 | 25% |
3,400 |
| 60,001 | and over | 35% |
9,400 |
Married Rates
|
From |
To | Rate |
Subtract |
|
0 |
15,000 | 0% |
0 |
|
15,001 |
23,000 | 15% |
2,250 |
|
23,001 |
60,000 | 25% |
4,550 |
|
60,001 |
and over | 35% |
10,550 |
Parent Rates
|
From |
To | Rate |
Subtract |
|
0 |
13,000 | 0% | 0 |
| 13,001 | 17,500 | 15% |
1,950 |
|
17,501 |
60,000 | 25% | 3,700 |
| 60,001 | and over | 35% |
9,700 |
Income Tax Rates for Non-Residents
Non-resident individuals in Malta are subject to different income tax rates, which may be less favourable than those available to residents. If you are unsure of your status, we can assist with determining the most appropriate filing basis and tax treatment.
|
From |
To | Rate | Subtract (€) |
|
0 |
700 | 0% |
0 |
|
701 |
3,100 | 20% | 140 |
| 3,101 | 7,800 | 30% |
450 |
| 7,801 | and over | 35% |
840 |
Progressive Tax Rates for Residents
Malta applies progressive tax rates to individuals based on marital and parental status. The rates of income tax vary each year, and apply to annual chargeable income.
-
Married rates are available for two partners who have registered their partnership as a civil union and live together; the spouses may opt for a joint assessment and use the married rates. In some cases, single parents may also apply these rates, depending on their eligibility.
-
Parent rates apply to individuals who are supporting a dependent child under 18, or under 23 if in full-time education and not earning more than €3,400 per year.
-
Single rates apply to individuals who do not qualify for either of the above categories.
2025 TAX RATES - Chargeable Income (€)
Important notice:
Following the 2026 Budget presented by the Minister for Finance in October 2025, the married and parent tax rate brackets for the basis year 2026 are set to be amended. These updates will take effect once the relevant legislative changes are enacted.
Single Rates
|
From |
To | Rate | Subtract |
| 0 | 12,000 | 0% |
0 |
| 12,001 | 16,000 | 15% |
1,800 |
| 16,001 | 60,000 | 25% |
3,400 |
| 60,001 | and over | 35% |
9,400 |
Married Rates
|
From |
To | Rate |
Subtract |
|
0 |
15,000 | 0% |
0 |
|
15,001 |
23,000 | 15% |
2,250 |
|
23,001 |
60,000 | 25% |
4,550 |
|
60,001 |
and over | 35% |
10,550 |
Parent Rates
|
From |
To | Rate |
Subtract |
|
0 |
13,000 | 0% | 0 |
| 13,001 | 17,500 | 15% |
1,950 |
|
17,501 |
60,000 | 25% | 3,700 |
| 60,001 | and over | 35% |
9,700 |
Income Tax Rates for Non-Residents
Non-resident individuals in Malta are subject to different income tax rates, which may be less favourable than those available to residents. If you are unsure of your status, we can assist with determining the most appropriate filing basis and tax treatment.
|
From |
To | Rate | Subtract (€) |
|
0 |
700 | 0% |
0 |
|
701 |
3,100 | 20% | 140 |
| 3,101 | 7,800 | 30% |
450 |
| 7,801 | and over | 35% |
840 |
Special Tax Programmes in Malta
Malta offers several special tax status schemes to attract international individuals and retirees. These programmes grant a flat rate of tax, subject to minimum thresholds and compliance conditions.
Global Residence Programme (GRP): Special Tax Status for Non-EU Nationals in Malta
Discover Malta’s Global Residence Programme, offering attractive tax benefits and a straightforward path to residency. Read more about it here.
The Residence Programme (TRP)
The Residence Programme offers a flexible residency option for non-EU nationals who wish to live in Malta. Read more about the TRP here.
Malta Retirement Programme (MRP)
The Malta Retirement Programme offers EU, EEA, and Swiss nationals an efficient way to obtain Maltese residency with tax benefits. Read more about the MRP here.
Highly Qualified Persons (HQP) Rules: Attracting Senior Professionals to Malta
Purpose
The Highly Qualified Persons (HQP) Rules were introduced by Malta to attract senior international professionals to industries where local expertise is limited, such as financial services, gaming, aviation, and assisted reproductive technology. The programme aims to enhance Malta’s competitiveness by bringing top-tier talent into eligible office positions within licensed companies or recognised entities operating in these sectors.
Eligibility
To qualify, the applicant must hold a valid employment contract under Maltese law for an eligible office within the financial services, gaming, or aviation sectors, or for an aerodrome-licensed entity. The individual must demonstrate relevant professional qualifications, have at least five years of experience in a comparable role, and earn a minimum annual income of €75,000, adjusted yearly according to Malta’s Retail Price Index. For 2025, this threshold is approximately €100,061. Additionally, the applicant must not hold more than 25% direct or indirect ownership in the employing company.
Tax Benefit
Beneficiaries under the HQP Rules are entitled to a flat income tax rate of 15% on qualifying employment income up to €5 million, with any income exceeding that amount being tax-exempt. For EU, EEA, and Swiss nationals, the tax benefit applies for five consecutive years, with the option to renew for two further five-year periods. For non-EU nationals, the benefit applies for four consecutive years, with the possibility of two further four-year extensions.
Global Residence Programme (GRP): Special Tax Status for Non-EU Nationals in Malta
Discover Malta’s Global Residence Programme, offering attractive tax benefits and a straightforward path to residency. Read more about it here.
The Residence Programme (TRP)
The Residence Programme offers a flexible residency option for non-EU nationals who wish to live in Malta. Read more about the TRP here.
Malta Retirement Programme (MRP)
The Malta Retirement Programme offers EU, EEA, and Swiss nationals an efficient way to obtain Maltese residency with tax benefits. Read more about the MRP here.
Highly Qualified Persons (HQP) Rules: Attracting Senior Professionals to Malta
Purpose
The Highly Qualified Persons (HQP) Rules were introduced by Malta to attract senior international professionals to industries where local expertise is limited, such as financial services, gaming, aviation, and assisted reproductive technology. The programme aims to enhance Malta’s competitiveness by bringing top-tier talent into eligible office positions within licensed companies or recognised entities operating in these sectors.
Eligibility
To qualify, the applicant must hold a valid employment contract under Maltese law for an eligible office within the financial services, gaming, or aviation sectors, or for an aerodrome-licensed entity. The individual must demonstrate relevant professional qualifications, have at least five years of experience in a comparable role, and earn a minimum annual income of €75,000, adjusted yearly according to Malta’s Retail Price Index. For 2025, this threshold is approximately €100,061. Additionally, the applicant must not hold more than 25% direct or indirect ownership in the employing company.
Tax Benefit
Beneficiaries under the HQP Rules are entitled to a flat income tax rate of 15% on qualifying employment income up to €5 million, with any income exceeding that amount being tax-exempt. For EU, EEA, and Swiss nationals, the tax benefit applies for five consecutive years, with the option to renew for two further five-year periods. For non-EU nationals, the benefit applies for four consecutive years, with the possibility of two further four-year extensions.
Our Personal Tax Services
At A2CO, we support clients with all aspects of their personal income tax responsibilities in Malta, offering strategic guidance and full-service compliance support.
Our services include:
-
Determining your residence status and assisting with tax residency certificates
-
Calculating your income tax liability under the relevant tax bands
-
Preparing and submitting your tax return
-
Strategic tax planning for expats, high net worth individuals, and remote professionals
-
Advising on tax benefits, special programmes, and available reliefs
-
Supporting relocation and cross-border income structuring
-
Representing your interests with the Maltese tax authorities
Why Choose A2CO
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Personal tax advice tailored to your circumstances and income profile
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Trusted by global professionals, corporate executives, and private clients
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End-to-end support with tax return filing, planning, and compliance
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Strategic insight into foreign income, relocation, and tax advantages
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Deep experience in Malta’s tax system and international tax matters
Frequently Asked Questions
Your tax exposure depends on your residence and domicile. If you are resident and domiciled in Malta, your worldwide income is fully taxable. If you are resident in Malta but not domiciled, only income arising in Malta and foreign income remitted to Malta are taxable. Importantly, Malta has an extensive network of double tax treaties with many countries, which help limit or eliminate the risk of double taxation.
Yes. We manage your tax return from start to finish and provide clear guidance on what income is taxable, which deductions apply, and how to ensure full compliance.
Tax returns can be filed either online or in paper format. We ensure correct preparation and timely submission of your return, including all relevant disclosures.
