Taxation

Personal Taxation

PERSONAL INCOME TAX RATE

Individuals are charged on their income at progressive tax rates up to a maximum of 35 per cent. From 2015 onwards, Malta reduced the top rate of income tax for those who earn less than €60,001 to 25 per cent from 29 per cent. Tax liability in Malta is based on the following conditions: 

Rate

Single Computation (€)

Joint Computation (€)

Parental Computation (€)

0%

0 - 8,500

0 - 11,900

0 - 9,800

15%

8,501 - 14,500

11,901 - 21,200

9,801 - 15,800

25%

14,501 - 19,500

21,201 - 28,700

15,801 - 21,200

25%*

19,501 - 60,000

28,701 - 60,000

21,201 - 60,000

35%

60,001+

60,001+

60,001+

*Not applicable to dividend income which remains taxable at 35%

EXPAT TAXATION

To attract highly qualified personnel from abroad, Malta has introduced an incentive scheme targeting foreign executives. Professionals in the financial servicesgaming and aviation sectors can benefit from a flat personal income-tax rate of 15 per cent on income up to €5 million. Any income over that figure is tax-free. To qualify for this tax incentive, the employee must earn a minimum of €80,100 per year (basis year 2013), among other criteria. EU nationals can benefit from the reduced tax rate for an unlimited period, EEA and Swiss nationals for a period of five consecutive years and third-country nationals for four consecutive years. Malta is also an attractive place for high-net-worth individuals and their families to relocate. In addition, two separate residency programmes, the Residence Programme for EU nationals and the Global Residence Programme for non-EU nationals, offer a flat tax rate of 15 per cent to people who purchase or rent property on the Maltese Islands. 

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