Key facts
- Maltese-source income
- Taxed
- Foreign income remitted
- Taxed
- Foreign income kept abroad
- Not taxed
- Foreign capital gains
- Not taxed, even if remitted
- Minimum tax
- €5,000 a year
- Applies if
- Foreign income ≥ €35,000
Malta taxes individuals according to two tests: whether they are resident and whether they are domiciled here. Someone who lives in Malta but is domiciled elsewhere — as most international arrivals are — is taxed on the remittance basis: on income arising in Malta, and on foreign income only to the extent it is brought into Malta.
Residence and domicile
- Residence is about where you live. It is a question of fact, looking at where your home is and how much of your time you spend here; spending more than 183 days a year in Malta is a common indicator, but not the only one.
- Domicile is about the country you regard as your permanent home in the long term. People who move to Malta generally keep their domicile of origin unless they clearly intend to make Malta their permanent home.
What is taxed — and what is not
For a person who is resident but not domiciled in Malta:
| Type of income | Taxed in Malta? |
|---|---|
| Income arising in Malta (salary, Maltese rent, Maltese dividends) | Yes |
| Foreign income brought into Malta | Yes |
| Foreign income kept outside Malta | No |
| Foreign capital gains — even if brought into Malta | No |
Income that is taxable is charged at Malta’s ordinary progressive rates, unless you are on a special programme with a flat rate.
The €5,000 minimum tax
Resident non-domiciled individuals whose foreign income reaches €35,000 or more and is not fully remitted must pay a minimum of €5,000 tax a year. For a married couple the €35,000 is measured on their combined income and one €5,000 minimum applies. Individuals whose foreign income is below €35,000 are not caught.
Where property fits in
- Rent from Maltese property is Maltese-source income: it is taxed in Malta regardless of domicile — see rental income tax.
- Buying a home is not required for non-dom treatment, but it is required for the Global Residence Programme, the Malta Retirement Programme and the MPRP.
- Selling a Maltese property is taxed through the final withholding tax, not through the remittance rules.
Choosing between non-dom status and a programme
The general non-dom rules suit many EU nationals and employees. High-income non-EU individuals often prefer the Global Residence Programme for its residence permit and flat 15% rate; retirees from the EU, EEA and Switzerland often compare the Malta Retirement Programme. Our residency options guide compares them side by side.
Planning points
- Keep capital and income in separate accounts abroad. Remittances are easier to identify when capital, gains and income are not mixed.
- Take advice in your home country too. Leaving your previous country of residence can have its own tax consequences.
- Review each year. Your residence and remittances are assessed annually.
