The tax liability of individuals is dependent on a number of factors which mainly relate to their residence, ordinary residence and domicile.
Individuals who are domiciled and ordinarily resident in Malta are subject to income tax on their world-wide income and capital gains. If a person is either ordinarily resident or domiciled in Malta, but not both, he is subject to tax on income arising in Malta, on income arising abroad but received in Malta and on capital gains arising in Malta. Personal income tax is charged at progressive rates up to a maximum of 35% as illustrated by the following tables:
Tax Rates for Basis Year 2015
| Single Rates | ||
| Taxable Income € | Rate % | Deduct € |
| 0 – 8,500 | 0 | 0 |
| 8,501 – 14,500 | 15 | 1,275 |
| 14,501 – 60,000 | 25 | 2,725 |
| 60,001 & over | 35 | 8,725 |
| Married Rates | ||
| Taxable Income € | Rate % | Deduct € |
| 0 – 11,900 | 0 | 0 |
| 11,901 – 21,200 | 15 | 1,785 |
| 21,201 – 60,000 | 25 | 3,905 |
| 60,001 & over | 35 | 9,905 |
| Parent Rates | ||
| Taxable Income € | Rate % | Deduct € |
| 0 – 9,800 | 0 | 0 |
| 9,801 – 15,800 | 15 | 1,470 |
| 15,801 – 60,000 | 25 | 3,050 |
| 60,001 & over | 35 | 9,050 |
Taxation of Non-Resident Individuals
Persons who are neither ordinarily resident nor domiciled in Malta are subject to tax in Malta on income and capital gains arising in Malta only. Local interest and royalty income are exempt from tax, as are capital gains on holdings in collective investment schemes or on securities as long as the underlying asset is not Maltese immovable property.
| Rates for 2008 – 2010 | ||
| Taxable Income € | Rate % | Deduct € |
| 0 – 700 | 0 | 0 |
| 701 – 3,100 | 20 | 140 |
| 3,101-7,800 | 30 | 450 |
| 7,801 & over | 35 | 840 |
Temporary Residents
Persons who are in Malta for some temporary purpose with no intention of establishing their residence therein and who have not resided in Malta for a period greater than six months shall not be taxed in Malta on income arising outside Malta. This means that temporary residents do not pay tax on their foreign income and gains whether remitted to Malta or not. They are liable to tax in Malta only on Malta source income.
Highly Qualified Persons (Amendment) Rules, 2015
Persons who are EEA or Swiss nationals and who benefit from the Highly Qualified Persons rules are eligible for a one-time extension of five years to his qualifying period. Therefore such persons may benefit from these rules for a maximum period of ten years. This extension is not available for persons who were resident in Malta before 1st January 2008. The Highly Qualified Persons scheme is to be terminated on the 31st December 2025. The last determinations will be issued by the 31st December 2020 for employment which commences not later than 31st December 2021.
