Maltese Income Tax

Ordinarily resident and domiciled in Malta: are liable for income tax in Malta on their worldwide income and certain capital gains,

Not ordinarily resident or not domiciled in Malta: are liable for income tax on Maltese-source income and on any foreign income remitted to Malta,

Temporarily resident in Malta:  are liable for income tax on Maltese-source income. They are not liable to pay tax on income or  capital gains arising outside Malta, whether remitted or not.

Individuals will be regarded as resident if they permanently reside in Malta, except for temporary absences.

Individuals will be regarded as temporarily resident if their stay in Malta is temporary and they do not reside there for 6 months or more in a year.

Ordinary residence and domicile:

The terms ordinary residence and domicile are not defined under Maltese law, but they adhere to the same principles as in English law. Normally, expatriates who are not of Maltese origin and who do not intend to permanently establish themselves in Malta are not considered to be domiciled in Malta for tax purposes.

Married persons are jointly responsible for filing tax returns and they must declare which of them is to be registered as taxpayer.

Taxable income includes:

  • employment income,
  • remuneration in cash or in kind.

Certain deductions are permissible for 2014 including:

  • interest paid on money borrowed is deductible from income generated by that same money,
  • alimony payment under a Maltese separation order,
  • certain capital gains,
  • certain pensions, scholarships and child maintenance.

A personal tax credit is granted to married or single women who return to employment, provided certain conditions are satisfied.

Income tax rates for 2014:

For single taxpayers

  •   0.00% from EUR    0.00 up to EUR 8’500,
  • 15.00% from EUR  8’501 up to EUR 14’500,
  • 25.00% from EUR 14’501 up to EUR 19’500,
  • 32.00% from EUR 19’501 up to EUR 60'000,
  • 35.00% over EUR 60'000.

For joint computation

  •   0.00% from EUR    0.00 up to EUR 11’900,
  • 15.00% from EUR 11’901 up to EUR 21’200,
  • 25.00% from EUR 21’201 up to EUR 28’700,
  • 35.00% over EUR 28’701.

For parents

  •   0.00% from EUR    0.00 up to EUR 9’300,
  • 15.00% from EUR 9’301 up to EUR 15’800,
  • 25.00% from EUR 15’801 up to EUR 21’200,
  • 32.00% from EUR 21’201 up to EUR 60'000,
  • 35.00% over EUR 60'000.

Filing date:

Individuals are taxed on a preceding year basis. Three provisional payments have to be made by the individual by April 30th, August 31st, and December 21st, except for income on which tax has been withheld at source (employment income). The balance must be paid by June 30th of the year of assessment.

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