Personal Tax

Sergio Montebello
Jun 20
3 min read

Understanding Maltese Personal Tax:

Malta, a small Mediterranean island nation, offers a competitive personal tax regime designed to attract both residents and foreign investors. With its strategic location, favourable climate, and English-speaking environment, Malta has become an increasingly popular destination for expatriates and digital nomads. Understanding how the personal tax system works is essential for anyone considering working, living, or investing in the country.

Overview of the Maltese Tax System

Malta operates a progressive personal income tax system, meaning the more you earn, the higher the rate of tax you pay on incremental income. Tax rates depend on your residency status, marital status, and type of income (such as employment, self-employment, or foreign income).

An individual can be subject to the:

Final Settlement System (FSS) or
Provisional Tax Payments and Final Settlement Tax

Under the FSS no tax return is required to be filed as tax is withheld by the employer whilst under the Final Settlement, the taxpayer would need to pay provisional tax and file a tax return accompanied by a self-assessment computation showing:

The chargeable income for the year of assessment on the basis of the information contained in the return;
The tax chargeable thereon;
The tax payable by or repayable to that person for the year of assessment;
Any provisional tax paid and any tax deducted at source;
Any tax credit or relief claimed and provisional tax claimed.

The tax year in Malta is aligned with the calendar year (1 January to 31 December).

Tax Residency

You are generally considered a tax resident in Malta if:

You spend more than 183 days in a calendar year in Malta, or
You maintain a permanent residence in Malta and your life is centred there.

Residents and domiciled persons in Malta are taxed on their worldwide income whilst non-domiciled and resident persons are taxed on a remittance basis.

2025 Personal Income Tax Rates for residents and non-residents.

TAX RATES FOR RESIDENTS
Chargeable Income (€) From		To	Rate
Single Rates
0	12,000	0%	0
12,001	16,000	15%	1,800
16,001	60,000	25%	3,400
60,001	and over	35%	9,400
Married Rates
0	15,000	0%	0
15,001	23,000	15%	2,250
23,001	60,000	25%	4,550
60,001	and over	35%	10,550
Parent Rates
0	13,000	0%	0
13,001	17,500	15%	1,950
17,501	60,000	25%	3,700
60,001	and over	35%	9,700

TAX RATES FOR NON-RESIDENTS
Chargeable Income (€)
From Subtract (€)		To	Rate
0	700	0%	0
701	3,100	20%	140
3,101	7,800	30%	450
7,801	and over	35%	840

Deductions

Malta provides various deductions, such as:

Childcare expenses
Private school fees (under specific schemes)
Tertiary education
Approved sports activities
Fees paid for residence in private homes for the elderly or in private homes/respites for the disabled
Donations to registered charities
Alimony payments

These deductions vary annually, so checking the latest guidelines from the Commissioner for Revenue is essential. The Maltese tax system also offers relief of any double taxation paid in a foreign country.

Filing and Deadlines

Income Tax Returns: Due by 30 June of the year following the tax year which may be extended yearly for online submissions (i.e., by 30 June 2026 for 2025 income).
Tax Payments: May be due in advance (provisional tax) for self-employed individuals.
Online Filing: Malta offers an e-filing portal through the Commissioner for Revenue (CFR).

Conclusion

Malta's personal tax system is designed to be both competitive and internationally aligned. Its combination of progressive rates, remittance-based taxation for non-domiciled residents, and special residence programs offers flexibility and opportunity, especially for expatriates and investors. However, given the complexity of international tax issues, it's wise to consult a local tax advisor to ensure full compliance and optimization.

For further information or assistance, please contact Quazar at quazaroffice@quazar.mt.

Get in Touch:

Charmaine Attard

cattard@quazar.mt / +356 2388 4600