Income Tax Malta: Rates, Non-Dom Rules and What You Actually Pay

Malta taxes individuals on a progressive basis, with rates running from 0% on the first band of income up to 35% on earnings above EUR 60,000. The system is residence-based: if you spend more than 183 days a year in Malta, or establish residence here, you become liable to Maltese income tax.

For residents who are also domiciled in Malta, worldwide income is taxable. But the picture changes considerably for non-domiciled residents. Under the remittance basis, non-doms pay tax only on income that arises in Malta and on foreign income that is actually transferred to a Maltese bank account. Foreign income kept abroad is not taxed. Foreign capital gains are never taxed in Malta, whether remitted or not.

Tax rates differ depending on your civil status — single, married or parent — and the 2026 Budget introduced additional family-friendly brackets for parents and married couples with children.

If you are resident in Malta but not domiciled here, you are taxed on a remittance basis. In practice this means three things.

First, all income arising in Malta is taxed at the standard progressive rates shown above. Second, foreign income is only taxed if and when you transfer it to Malta — keep it in an overseas account and no Maltese tax is due. Third, foreign capital gains are never subject to tax in Malta, regardless of whether you bring the money into the country.

There is a minimum annual tax of EUR 5,000 for non-doms who have foreign income. This is considerably lower than comparable thresholds in the UK or other European non-dom jurisdictions.

**A practical example.** Take a consultant earning EUR 120,000 from clients outside Malta, plus EUR 20,000 in local rental income. Under non-dom rules, the EUR 20,000 rental income is taxed at standard progressive rates (approximately EUR 2,000 in tax). The EUR 120,000 in foreign earnings? Only taxed if remitted to a Malta bank account. If kept abroad, the tax on that income is zero. The minimum tax of EUR 5,000 still applies, so the total Malta tax bill is EUR 5,000 — an effective rate of 3.6% on total income.

Non-dom status is not something you apply for. It follows automatically from your factual circumstances: if you are resident here but your domicile of origin (or choice) is elsewhere, you qualify. There is no time limit on how long you can maintain non-dom status in Malta, unlike the UK where restrictions tighten after several years of residence.

Beyond the standard tax system, Malta operates several programmes aimed at specific groups of incoming residents.

**Global Residence Programme (GRP)** — Designed for non-EU nationals, the GRP offers a special tax status with preferential rates on foreign income remitted to Malta. Applicants must purchase or rent qualifying property. Tax affairs are managed through an authorised mandatory registered with the tax authorities.

**Nomad Residence Permit** — Remote workers employed by non-Maltese companies can benefit from a 10% flat tax on their work income. The permit is valid for one year and renewable. There is also a 12-month tax grace period from the date the permit is issued. Other income remains subject to normal progressive rates.

**Malta Retirement Programme (MRP)** — Retirees who meet property and income requirements can access preferential tax treatment on pension income. Additional rebates are available for individuals over 61.

**Permanent Residence Programme (MPRP)** — A route to permanent EU residency for non-EU nationals through property investment, a government contribution and a donation to an NGO. Tax treatment follows the standard progressive rates.

Each programme has its own eligibility criteria and obligations. Getting the right structure in place from the start avoids complications down the line.