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Income tax in Malta

13.08.2015

Liability to tax in Malta is largely linked to a person’s residence and domicile. The income tax act defines the term ‘person’ as an individual and also as a body of persons (including a company, fellowship, society or other association of persons, whether corporate or incorporated, and whether vested with legal personality).

Individuals who are both ordinarily resident and domiciled in Malta are subject to tax on a worldwide basis. All Income and capital gains arising in Malta or elsewhere are deemed to be subject to tax in Malta regardless whether the foreign source income is remitted to Malta or not.

Individuals who are either resident or domiciled in Malta are subject to tax on Malta source income and capital gains. Foreign source income is subject to tax in Malta only when it is received in Malta while foreign capital gains are not subject to tax even if remitted to Malta.

Individuals temporarily resident in Malta (physically present for a period not exceeding 183 days in a calendar year & with no intention to reside in Malta) are only subject to tax on the income or capital gains arising in Malta.

Tax rates for married couples

Malta enables married couples to fill a joint tax computation whereby both the income of the husband and wife is aggregated and tax on the global income is calculated. The tax rates for married couples are:

Taxable income (€)
Rate (%)
up to 12,700 0
12,701 – 21,200 15
21,201 – 60,000 25
60,001 and over 35

Single tax rates

The tax rates for resident individuals opting to be taxed on the single rates is the following. Married individuals can also opt for a single computation and use the following tax rates:

Taxable income (€) Rate (%)
up to 9,100 0
9,101 – 14,500 15
14,501 – 60,000 25
60,001 and over 35

Parent tax rates

Following recent amendments in the Maltese tax system, individuals who maintain a child under18 years of age, or under 21 years old if receiving full-time instruction at a tertiary education establishment, and which child does not earn income in excess of €2,400 from gainful occupation can benefit from the parent rates of tax, as follows:
Taxable Income (€)  Rate (%)
up to 10,500 0
10,501 – 15,800 15
15,801 – 60,000 25
60,001 and over 35

Click here to download PDF - Income Tax in Malta.