Personal Taxation in Malta

Residence and Domicile Factors Affecting Personal Tax

Ms. Ekaterina Zammit | Published on 07 Nov 2019 | Updated on 08 Nov 2019

Personal Taxation Malta

Personal Tax in Malta is very similar to that of the United Kingdom. Without a doubt, its main benefit is the possibility to become subject to tax in Malta on a remittance basis, what is also known as “res non-dom”. 

To elaborate further, there are two main connecting factors for taxation in Malta: 
- Residence  
- Domicile  

Noticeably, citizenship does not in itself lead to any tax implications. Therefore, acquisition of the citizen either by naturalisation or registration does not automatically make the new citizens subject to Maltese tax.  

Personal Tax in Malta: Domicile 

“Domicile” is an Anglo-Saxon concept of a very strong link between an individual and his birth country, which is inherited from the father at the birth. Domicile of birth will remain unchanged for an individual as long as he hasn’t severed all connections (friends, family, any possessions) with his motherland and is determined to never return to the country.   

Both EU and non-EU nationals can take up residence in Malta. EU / EEA nationals are entitled to residency under two main routes: the Residence Programme and Ordinary Residence.   Non-EU/EEA nationals are able to acquire residency under the Malta Global Residence Programme.   
An individual becomes resident in Malta either by virtue of spending 6 or more months in Malta in a calendar year, or in certain exceptional circumstances indicating an intention to reside accordingly in Malta. 

Non-Resident Tax Malta 

As a Malta resident non-dom, an individual is subject to tax on: 
• local source income, that is income arising in Malta 
• local source capital gains 
• foreign source income only to the extent remitted to Malta. 
• Gains on the transfer of capital assets abroad do not fall within the scope of Maltese tax even if remitted partially or fully to Malta. 

Non-Dom Taxation Advice 

Our Tax Advisory practice is experienced in advising on Malta Non-Dom Taxation matters.  For more information on Malta Non-Dom Taxation, please do not hesitate to contact us. 
 


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