Tax system in Malta
Malta taxes individuals on a worldwide basis if they are both domiciled and ordinarily resident in Malta. Non-domiciled individuals usually follow a remittance basis, so foreign income and gains can stay outside Maltese tax if they are not remitted to Malta.
Personal income tax is progressive, while Maltese companies are taxed at 35% on worldwide income and capital gains. Malta's imputation system can refund part or all of the company tax at shareholder level, and certain entities can elect a 15% final tax regime introduced in 2025 and active in 2026.
There is no broad net wealth tax or inheritance tax, but transfers of immovable property and shares can trigger duty, and inheritance of Maltese property follows separate causa mortis rules.
VAT is 18% and social security contributions are a real payroll cost for employees and the self-employed. For many founders and expats, the practical tax question is not whether Malta is "low tax", but which regime they fall into.
Tax rates at a glance
- Income tax
- 0%-35%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 0% (but property duty can apply)
- Capital gains tax
- Up to 35%
- Corporate tax
- 35% (15% elective final tax available to some entities)
- Dividend tax
- 0% WHT in most cases
- VAT
- 18%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
ExpatsFoundersInvestorsFamily officesEU businesses
Watch out for
- Malta is not a no-tax jurisdiction. The 35% headline company rate, progressive personal tax, social security, VAT and property duty can all be material.
- Residence and domicile drive the individual tax result. A non-dom can often use remittance basis taxation, but that protection is fact-specific and not automatic.
- 2026 changes matter, especially the new business R&D deduction, budget-driven VAT changes and the expanded reduced duty on inherited residential property.
Frequently asked questions
Is Malta a low-tax country?
Malta is not generally low-tax in the headline sense because personal and corporate tax rates can reach 35%. The system can still be attractive for the right fact pattern because non-doms may use remittance basis taxation, Maltese companies use an imputation system, and some 15% election regimes exist for qualifying entities and roles.
Does Malta have wealth tax or inheritance tax?
Malta does not levy a broad net wealth tax, and it does not have a general inheritance tax. However, immovable property transfers, causa mortis deeds and share transfers can still trigger duty.
What other taxes should I check in Malta?
VAT at 18%, social security contributions, property transfer duty, stamp duty, and payroll withholding are the main non-income-tax items most people overlook.