UK vs Malta taxes (2026): 15% elective company tax and FIG

United Kingdom vs Malta tax rates at a glance

Tax	🇬🇧 United Kingdom	🇲🇹 Malta
Income tax	Personal income tax: 20% to 45% Personal allowance: GBP 12,570 Scottish top rate: 48% Employee National Insurance: 8% Employer National Insurance: 15%	Income tax: 0%-35% Top marginal rate: 35% Foreign income for non-doms: 0% if not remitted Employee social security: 10% Self-employed social security: 15%
Corporate tax	Corporation tax: 25% Small profits rate: 19% Marginal relief band: GBP 50,000 to GBP 250,000 VAT: 20%	Standard corporate income tax: 35% Elective final income tax: 15% Dividend withholding tax: 0% in most cases Foreign company income: Malta-source / remitted income
Capital gains tax	Annual exempt amount: GBP 3,000 Basic rate CGT: 18% Higher and additional rate CGT: 24% Business Asset Disposal Relief: 18%	Capital gains tax: Up to 35% Maltese property transfer WHT: 8% / 10% Foreign capital gains for non-doms: 0% if not remitted Listed share exemptions: Available
Dividend tax	Dividend allowance: GBP 500 Basic rate dividend tax: 10.75% Higher rate dividend tax: 35.75% Additional rate dividend tax: 39.35% Withholding tax on ordinary dividends: 0%	General dividend withholding tax: 0% Untaxed-income distribution WHT: 15% Maltese company dividends: Usually no extra tax Foreign dividends: 0%-35% depending on status
Wealth tax	Net wealth tax: 0% Inheritance tax: 40% Capital gains tax: 24% ATED scope: GBP 500,000+	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Standard inheritance tax: 40% Nil-rate band: GBP 325,000 Residence nil-rate band: GBP 175,000 Lifetime gifts: Potentially 0% to 40%	Inheritance tax: 0% Causa mortis duty: 5% Reduced residential duty: 3.5% Late filing interest: 4% p.a.
VAT / GST / sales tax	VAT: 20%	VAT: 18%
Standard VAT	20%	18%
Personal foreign-income treatment	Worldwide, with a four-year FIG claim for qualifiers	Remittance basis for many non-domiciled residents

Who wins on each tax

Personal income taxMalta

Malta's top personal rate is 35%, below the UK's 45% (48% in Scotland), and non-domiciled residents may use a remittance basis on foreign income.

Corporate taxMalta

Malta's standard rate is 35%, but a 15% elective final tax is available to some entities and imputation refunds can cut the effective rate. That can undercut the UK's 25% main rate in the right structure.

Capital gains taxUnited Kingdom

UK individuals generally pay 18% or 24% from 6 April 2026. Malta can tax gains at up to 35% unless a remittance or exemption rule applies.

VATMalta

Malta VAT is 18%, compared with UK VAT at 20%.

Inheritance taxMalta

Malta has no general inheritance tax, though property duty can apply. The UK charges 40% IHT.

The verdict

Malta's headline personal and company rates both reach 35%, which looks close to the UK until you split the regimes. Non-domiciled Maltese residents often use a remittance basis on foreign income and gains. Some companies can elect a 15% final tax instead of the 35% imputation system.

The UK taxes residents on worldwide income, with 45% income tax outside Scotland, National Insurance on employment, 25% main corporation tax and 40% inheritance tax. A qualifying newcomer can claim the four-year foreign-income-and-gains regime after ten years outside the UK, but that is time-limited and does not replace substance.

Choose Malta when domicile, remittance and a qualifying 15% election or refund-led company are the actual plan and EU residence is required. Choose the UK when the business needs British customers, banks or staff. A Malta company without management in Malta will not beat UK tax on UK-source work.

How to read this comparison

Malta and the United Kingdom are both English-speaking European systems with real substance expectations. Malta is not a 0% island, and the UK is not a place you “opt out of” with a holding company.

Malta’s personal scale runs to 35%. That is below the UK’s 45% additional rate and 48% Scottish top rate, and it does not add UK-style National Insurance in the same way, though Maltese social security is a genuine payroll cost. The larger personal difference is domicile. A person who is domiciled and ordinarily resident in Malta is taxed on worldwide income. A non-domiciled resident often uses a remittance basis, so foreign income and gains can remain outside Malta if they stay outside Malta. Residence programmes sell that fact pattern. They do not automatically re-characterise Malta-source salary or local property.

On companies, Malta’s 35% headline is higher than the UK’s 25% main rate and 19% small-profits rate. Two mechanics can reverse that. The imputation system can refund part of the company tax when profits are distributed. Separately, some entities can elect a 15% final tax without imputation, locked for five years. Those tools need qualifying facts, not a nameplate.

The UK is worldwide for residents, with 18%/24% individual CGT from 6 April 2026, dividend rates of 10.75%/35.75%/39.35%, 20% VAT and 40% inheritance tax. A qualifying new resident can claim the four-year foreign-income-and-gains regime after ten years abroad. That is a statutory newcomer relief, not a remittance lifestyle. UK-source employment and a UK permanent establishment remain taxable. If the people who run the company sit in London, Malta’s 15% election will not be the end of the story.

Which one fits you

🇬🇧 Choose United Kingdom if you're a…

Founders with UK customers, payroll or investors
People who prefer a listed 18%/24% CGT rate to Malta's up-to-35% gains
New UK residents who qualify for the four-year foreign-income-and-gains regime

🇲🇹 Choose Malta if you're a…

Non-domiciled residents who can keep foreign income offshore
Groups that qualify for Malta's 15% elective final tax
People who need an EU residence base

Frequently asked questions

Is Malta lower tax than the UK?

On personal top rates and inheritance tax, often yes. On capital gains, the UK's 18% and 24% individual rates can beat Malta's up-to-35% charge. Company tax depends on whether a 15% election or shareholder refund applies.

What is Malta's 15% company tax?

Qualifying entities can elect a 15% final income tax without imputation. The election is binding for five years and the tax is not refundable. The default company rate remains 35%.

Does Malta tax worldwide personal income?

People who are both domiciled and ordinarily resident in Malta are generally taxed on worldwide income. Non-domiciled residents usually follow a remittance basis, so foreign income and gains can stay outside Maltese tax if they are not remitted.

Is the UK foreign-income-and-gains regime like Malta remittance?

No. FIG is a four-year claim after at least ten consecutive non-UK tax years. Malta's remittance basis is a domicile-based residence rule, not a four-year newcomer window.

United Kingdom vs Malta taxes