Malta is not tax-free for expats, but it taxes them in an unusual way. Salary earned in Malta is taxed at progressive rates from 0% to 35% – a single person pays nothing on the first €12,000 in 2026 – while most expats are resident but not domiciled, which means foreign income you keep abroad is not taxed in Malta at all and foreign capital gains are exempt even if you bring them in.
How does Malta tax expats?
Two words decide your tax: residence and domicile. Malta has few written rules on either. In practice you become tax resident by living in Malta – spending more than 183 days a year there is the usual benchmark – while domicile is where your permanent home is, which for most foreigners stays their country of origin.
That gives three positions:
| Your status | What Malta taxes |
|---|---|
| Resident and domiciled (most Maltese citizens) | Worldwide income and gains |
| Resident, not domiciled (most expats) | Malta-source income and gains, plus foreign income you bring into Malta. Foreign capital gains are not taxed, even if remitted |
| Non-resident | Only income and gains arising in Malta |
This remittance basis is the heart of Malta's appeal to expats. A salary from a Maltese employer is fully taxable either way. Rent from a flat in Manchester or dividends from a broker in Frankfurt are only taxed in Malta if the money is transferred to a Maltese account.
Two exceptions matter: a person married to a Maltese-domiciled resident is taxed on a worldwide basis, and so are holders of certain long-term or permanent residence statuses.
What are the income tax rates in Malta for 2026?
Malta uses separate tables for single people, married couples and parents. These are the 2026 rates for residents, which also apply to non-domiciled residents on their taxable income:
| Taxable income (single) | Rate | Taxable income (married) | Rate |
|---|---|---|---|
| €0 – €12,000 | 0% | €0 – €15,500 | 0% |
| €12,001 – €16,000 | 15% | €15,501 – €23,000 | 15% |
| €16,001 – €60,000 | 25% | €23,001 – €60,000 | 25% |
| Over €60,000 | 35% | Over €60,000 | 35% |
Parents filing alone get a wider 0% band of €13,000, rising to €14,500 with one child and €18,500 with two or more. Married couples with children have their own bands too, starting at €17,500 with one child and €22,500 with two or more.
Social security is separate from income tax. Employees pay 10% of salary, capped at a fixed €55.93 a week once pay exceeds €29,084 a year. The self-employed pay 15% of the previous year's net income, capped at €83.89 a week.
How much tax will you pay on a Malta salary?
A simplified example for a single employee in 2026, with income tax from the single table and the 10% social security contribution, before any other deductions or allowances:
| Gross salary | Income tax | Social security | Net per year | Net per month |
|---|---|---|---|---|
| €20,000 | ~€1,600 | ~€2,000 | ~€16,400 | ~€1,370 |
| €30,000 | ~€4,100 | ~€2,910 | ~€22,990 | ~€1,920 |
| €45,000 | ~€7,850 | ~€2,910 | ~€34,240 | ~€2,850 |
| €65,000 | ~€13,350 | ~€2,910 | ~€48,740 | ~€4,060 |
A €30,000 salary is taxed at an effective rate of about 14% before social security, which is why mid-level salaries go further in Malta than the headline 35% suggests – set them against rent and bills in our cost of living in Malta guide. For comparison, the average monthly basic salary in Malta was about €2,280 gross in the second quarter of 2026, according to the National Statistics Office.
What is the non-dom minimum tax?
Non-domiciled residents with foreign income of €35,000 or more in the previous year (combined, for a couple) that is not fully brought into Malta must pay a minimum tax of €5,000 a year.
Tax you already pay in Malta on your salary counts towards the €5,000, so an employee earning a normal Maltese salary usually meets it anyway. It mostly affects people living on investment income held abroad.
Which special tax regimes can expats use?
Malta's flat-rate regimes are where expat tax planning really happens. Each has its own conditions and its own application:
| Regime | Who it is for | Rate | Minimum tax |
|---|---|---|---|
| Highly Skilled Individuals Rules | Employees in qualifying roles earning at least €65,000 | 15% flat on qualifying employment income | – |
| Nomad Residence Permit | Remote workers for foreign employers | 10% on authorised work income, generally nothing in the first year | – |
| Global Residence Programme | Non-EU nationals | 15% on foreign income remitted to Malta | €15,000 a year |
| Malta Retirement Programme | Pensioners | 15% on foreign income remitted | €7,500 + €500 per dependant |
| Individual Tax Programme (from 1 January 2027) | New programme for remitted foreign income | 15% | €35,000; €15,000 for retired pensioners |
The Highly Skilled Individuals Rules replaced the old Highly Qualified Persons regime, which takes no new applicants and ends in 2030. The new rules run for five years, extendable twice to a maximum of 15, and the €65,000 salary floor rises by €10,000 every five years.
Two smaller rules help ordinary workers: part-time income is taxed at a flat 10% on up to €10,000 from employment (€12,000 self-employed), and there is no inheritance tax and no wealth tax in Malta.
How are Maltese companies taxed?
The headline corporate tax rate is 35%. Under Malta's full imputation system, shareholders can claim refunds of most of the tax the company paid, which is how the effective rate on many trading profits ends up far lower – often quoted at around 5%.
Since the 2025 year of assessment, companies can instead opt into Final Income Tax Without Imputation (FITWI): a 15% final tax with no refunds, locked in for at least five consecutive years. VAT is 18%, and service providers with turnover of €35,000 or less can register as small enterprises and not charge it.
How are UK and US expats taxed in Malta?
UK citizens are taxed in Malta like any other non-domiciled resident, whether they arrive on a work permit or a residence programme. Malta and the UK have a double taxation treaty, so income is not taxed twice. UK pensioners often look at the Malta Retirement Programme, since moving after Brexit requires a residence route as a non-EU national.
US citizens remain taxable in the United States on their worldwide income wherever they live. Malta and the US have a tax treaty, and Maltese tax paid can generally be credited against the US bill, but you still file US returns every year.
Whatever your nationality, your residence route shapes your tax. The permits – Single Permit, Nomad Residence Permit, MPRP – are compared in our guide to moving to Malta, and the investor route is detailed in Malta permanent residence.
This page explains how the system works; it is not tax advice. Rules change with every Budget, so check your own case with the Commissioner for Revenue or a qualified adviser.
01Is Malta tax free for expats?
No. Expats working in Malta pay income tax on their Maltese salary at progressive rates of 0% to 35% in 2026, plus 10% social security. Most expats are resident but not domiciled, so foreign income they keep outside Malta is not taxed there, and foreign capital gains are exempt even if brought in.
02What is the income tax rate for expats in Malta?
Expats resident in Malta use the same 2026 tables as Maltese residents. For a single person the rates are 0% up to €12,000, 15% up to €16,000, 25% up to €60,000 and 35% above that. Employees in qualifying roles earning at least €65,000 can apply for a flat 15% rate under the Highly Skilled Individuals Rules.
03What is the non-dom tax in Malta?
Non-domiciled residents are taxed only on Malta-source income and on foreign income they bring into Malta. Foreign capital gains are not taxed even if remitted. If their foreign income is €35,000 or more and not fully remitted, they must pay a minimum tax of €5,000 a year, which Maltese tax on a salary counts towards.
04Is Malta a tax haven?
Malta is an EU member state with a headline corporate rate of 35% and personal income tax of up to 35%. Its refund system can lower the effective rate on company profits, and its non-dom rules exempt foreign income kept abroad, which is why it is often described as tax-efficient. Since 2025 companies can also choose a 15% final tax regime.
05How much tax do you pay on a €30,000 salary in Malta?
A single employee earning €30,000 in 2026 pays about €4,100 in income tax and about €2,910 in social security contributions, leaving roughly €23,000 a year or €1,920 a month net, before any other deductions or allowances. The effective income tax rate is about 14%.
06Can a UK pensioner live in Malta?
Yes, but since Brexit a UK pensioner moving to Malta needs a residence route as a non-EU national. The Malta Retirement Programme taxes foreign pension income brought into Malta at a flat 15% with a minimum of €7,500 a year, and the UK and Malta have a double taxation treaty to prevent the same income being taxed twice.
Featured image: Matthew Axiak / Wikimedia Commons / CC BY-SA 4.0
