🇲🇹 Malta · Taxes
Malta's tax system
Key tax rates for individuals and companies in Malta.
Malta has a progressive personal income tax, a profit tax on companies, VAT and social contributions. The rate of tax on individual income depends on residence and domicile status.
Personal income tax
The personal income tax rate in Malta runs from 0% to 35%, depending on the level of income and family status.
- Residents domiciled in Malta pay tax on their worldwide income.
- Residents without domicile pay tax on income from Maltese sources and on foreign income remitted to Malta.
- Non-residents pay tax only on income from Maltese sources.
Taxes for business
The profit tax on legal entities in Malta is 35%. The standard VAT rate is 18%, with reduced rates of 7% and 5% on certain goods and services.
Social contributions and property tax
Social contributions are 10% for employees earning more than €24,986 a year. The property transfer tax is 15%.
Key features of the tax system
Progressive personal income tax
The rate of 0% to 35% depends on the level of income and family status - on a modest income the tax burden is minimal.
Territorial principle for non-residents
Residents without domicile and non-residents pay no tax on income unconnected with Malta and not remitted to the country.
Reduced VAT on certain categories
Some goods and services are taxed at 7% or 5% instead of the standard 18%.
Moderate social contributions
The 10% rate applies to salaries above €24,986 a year.
FAQ
How much is personal income tax in Malta?
Is worldwide income taxed in Malta?
How much is the profit tax on companies in Malta?
What is the VAT rate in Malta?
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