How dividend tax works in Malta
Malta generally does not levy withholding tax on dividends paid by Maltese companies. Instead, Malta uses a full imputation system, so the company tax paid on underlying profits is credited against the shareholder's tax position when dividends are paid out.
Dividends from taxed Maltese company profits are often not charged to additional Maltese tax for resident individuals or companies, but the shareholder still needs to understand the gross-up and refund mechanics.
A 15% withholding tax can apply when a Maltese company distributes untaxed income to certain resident individuals and some controlled non-resident persons. That is the main exception that keeps Malta dividend tax from being a blanket 0%.
Foreign dividends are taxed under the normal residence and domicile rules. For resident and domiciled individuals, foreign dividends are generally taxable on a worldwide basis; for resident non-doms, foreign dividends can fall under the remittance basis.
Tax rates at a glance
- General dividend withholding tax
- 0%Standard rule
- Untaxed-income distribution WHT
- 15%
- Maltese company dividends
- Usually no extra tax
- Foreign dividends
- 0%-35% depending on status
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFoundersFamily officesExpats
Watch out for
- Foreign withholding tax can still hit you before the dividend reaches Malta, so treaty relief and source-country paperwork matter.
- If you are tax resident outside Malta, your home country may tax the dividend even when Malta does not.
- Dividends should be backed by proper accounts, distributable reserves and board approvals, especially for Maltese companies using the refund system.
Frequently asked questions
Does Malta tax dividends?
Malta generally does not levy a separate dividend withholding tax. The company tax already paid at source is handled through the imputation system, and shareholder-level consequences depend on who receives the dividend.
Is there dividend withholding tax in Malta?
Not usually. The main exception is a 15% withholding tax on certain distributions of untaxed income to specific recipients.
Are foreign dividends taxed in Malta?
They can be. Resident and domiciled individuals are generally taxed on worldwide income, while resident non-doms are usually taxed on foreign dividends only if they are remitted to Malta.