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Malta has been one of the most popular tax havens in Europe for many years, but how high are the taxes really and what makes the Mediterranean island so popular?
In this comprehensive guide, we break down the tax system in Malta and show the true tax benefits Malta offers to expats, international entrepreneurs, and investors.
Key takeaways
Malta levies relatively high taxes, but has numerous special regulations for non-domiciled residents that make the country particularly attractive.
Malta – Taxes at a Glance
Below is an overview of Malta's most important taxes, based on current tax laws including special regulations for Non-Dom Residents.
Personal Income Tax
Income tax in Malta is progressive and divided into distinct brackets, with the top tax rate rising to 35 %.
- €0 to €9,100: 0 %
- 9,101 € to 14,500 €: 15 %
- €14,501 to €60,000: 25 %
- over €60,000: 35 %
However, the interesting thing is that income is only taxed if it is actually transferred to Malta. This means that if personal income from abroad is not transferred to an account in Malta, no tax is levied on it. This principle is called Remittance Based Taxation and means that tax is only due upon importation. In addition, social security contributions must also be paid on local income.
Anyone who generates foreign income and does not remit it to Malta does not have to pay tax on it.
There is a minimum tax of €5,000 if your income exceeds €35,000. It’s essentially a flat tax if 100 % of your income comes from abroad.
Source: https://mtca.gov.mt/personal-tax/individual/taxationforindividuals
Corporate Income Tax
The corporate income tax rate for Maltese companies is 35 %. This is particularly high by international standards. However, there is a special provision that allows companies to recover 6/7 of this tax, resulting in an effective tax rate of 5 %.
In practice, of course, from a cash flow perspective, you have to take into account that you first pay 35 % in taxes and don't get that money back until later.
However, for Maltese Ltd companies that are also managed and operated from Malta, a managing director’s salary must also be reported, which is taxable at the standard income tax rate of up to 35 %. The amount must be reasonable and credible.
capital gains tax
Capital gains—such as those from stock profits, dividends, cryptocurrency, or similar sources—are generally tax-free. This applies not only to foreign capital gains but also to domestic capital gains.
Crypto Tax
Even crypto gains are now completely tax-free, regardless of the holding period. High-frequency trading in the sense of day trading is also tax-free.
For whom is Malta tax-beneficial?
Malta is worthwhile for various people from a tax perspective and offers unique advantages in a European comparison.
Entrepreneur
Businesses operating internationally—typically with revenue in the high 7- to 8-digit range—can also benefit significantly from Malta’s tax system. Although the administrative burden associated with the corporate income tax refund system is higher, most companies end up with an effective tax rate of 5 %—which is among the lowest in Europe and the EU.
Investors / HNWIs
Wealthy individuals who live primarily on passive income from foreign investments benefit from remittance-based taxation in Malta and pay no taxes on dividends, capital gains, and other foreign income at the private level. Only the minimum annual tax of €35,000 is due each year.
Tax calculator
All taxes in Malta can be easily calculated using the tax calculator below, based on current tax laws.
Global Setup · Malta
Estimate your tax liability as a non-domiciled tax resident in Malta—based on the remittance basis and current Maltese tax laws.
Malta: 35% nominal; due to the shareholder refund, effectively 5% (trading) and 10% (passive). The local dividend resulting from this has already been accounted for through full credit (0% below).
Local dividends: 0% through full tax credit (tax already paid at the corporate level). Foreign dividends: tax-exempt as long as they are not remitted to Malta; subject to progressive taxation upon remittance (or 15% under the GRP).
Crypto (coins) is considered movable property and, for private investors, is not subject to capital gains tax. Commercial / frequent trading is taxed as business income.
Foreign capital gains are tax-exempt in Malta—even when remitted. Maltese real estate: 8% Property Transfer Tax on the transfer value (final).
Effective tax rate
Note: Non-binding estimate based on current Maltese tax laws (tax year 2026, single-rate system) (Non-Dom Remittance Basis: 0% on non-remitted foreign income; foreign capital gains are always tax-exempt; Income tax 0–35%; corporate income tax 35% nominal / effective 5% via 6/7 refund; local dividends 0% through full credit; Minimum tax of €5,000 for foreign income of €35,000 or more, or €15,000 under the GRP; personal crypto gains 0%; Maltese real estate 8% PTT). This calculation replaces no individual tax advice. Family/marriage provisions, remittance planning, social security, DTA crediting, and special cases are either not covered or only covered in a simplified manner. For a binding assessment, please book a consultation.
Summary
Malta is a true tax haven and has one of the most attractive tax systems in Europe due to numerous special provisions that apply to individuals with “non-dom” status. These individuals are largely exempt from personal income taxes as long as the money is not transferred to Malta, and companies can also claim tax refunds, bringing the effective capital gains tax rate to around 5 %. The island nation is particularly well-suited for high-net-worth individuals and investors with assets in the millions.
