How does the non-dom regime compare to Cyprus for expats?

Both are excellent. Malta non-dom: capital gains are tax-free even if remitted to Malta — advantage over Cyprus. Malta minimum tax: €5,000/year if foreign income exceeds €35,000 (Cyprus has no minimum). Malta is Schengen; Cyprus is not. Cyprus has the 17-year Non-Dom SDC exemption on dividends (0% SDC); Malta non-doms pay the standard PIT rates on remitted dividend income. The best choice depends on your income profile — Malta wins for capital-gain-heavy portfolios; Cyprus can win for high dividend income with a Malta company structure.

Is the corporate 6/7 refund still available after 2025?

Yes — the traditional 35%/6/7 refund system remains fully available and is NOT being phased out. The new 15% FITWI (from September 2025) is an elective alternative only. Companies can choose which system suits them; those with complex shareholder structures may prefer the refund route, while simpler companies may prefer the cleaner 15% option.

What is the tax position for crypto in Malta?

Malta was once nicknamed 'Blockchain Island' but currently lacks specific crypto tax legislation. Under general principles: crypto held by a non-dom resident and disposed of (sold, exchanged) does not trigger Maltese tax on the gain, regardless of whether proceeds are remitted — foreign capital gains are exempt for non-doms. Companies involved in crypto/VFA trading are subject to CIT at 35% (with refund). The HQP/Highly Skilled Individuals scheme covers VFA sector employees at 15%. Always verify with a Maltese tax advisor given the evolving regulatory landscape.

What does 'remitted to Malta' mean in practice?

Income is considered remitted to Malta when it is transferred to a Maltese bank account, used to pay Maltese expenses directly from a foreign account, or brought into Malta in cash. Income earning interest in a foreign account that is never transferred to Malta is NOT remitted. Expats typically maintain one Maltese bank account (for local expenses, rental payments, utility bills) and keep foreign investment income in accounts abroad.

Are there any wealth or inheritance taxes in Malta?

No — Malta has zero inheritance tax, zero wealth tax, and zero gift tax. Property passed to heirs is subject only to a transfer of immovable property duty (approximately 5% of value), but this is a transfer tax not an estate or inheritance tax. This makes Malta very attractive for HNW individuals concerned about wealth preservation across generations.

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🇲🇹 Malta

Cost of Living

35%

Standard Top Rate

On income above €60,000; tax-free threshold €9,100 (single)

€5,000/yr

Non-Dom Minimum Tax

Required if foreign income >€35,000; below this threshold: zero minimum

15% flat

GRP/TRP Rate

€15,000/yr minimum; foreign capital gains: 0% even if remitted

~5%

Corporate Effective Rate

Via 6/7 refund system; or 15% FITWI (new from Sep 2025)

15% flat

HQP Scheme Rate

On qualifying employment income; €65,000 min salary (from Jan 2026); to 2040

Up to €16,636/yr

Pension Exemption (2026)

100% exempt from PIT; up from 80% exempt in 2025

Last updated: March 2026

Overview🏙️Sliema 🏛️Valletta

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Overview

Malta's tax system rewards mobile wealth and passive income. Non-Dom residents pay tax only on income remitted to Malta; foreign capital gains are entirely exempt even if remitted — a significant advantage over the old UK non-dom regime, which closed in April 2025. GRP/TRP holders pay 15% flat on remitted foreign income with a €15,000/year minimum. Standard residents pay progressive rates (0–35%) but benefit from new 2026 brackets with lower effective rates for parents with children. Corporate tax appears at 35% but the 6/7 refund system reduces the effective rate to ~5% for shareholders on trading income.

Key Takeaways

Single rates (2026): 0% on €0–€9,100; 15% on €9,101–€14,500; 25% on €14,501–€60,000; 35% above €60,000
Qualification: anyone who is a Maltese tax resident (183+ days/year) but is NOT domiciled in Malta by origin or choice
Headline CIT rate: 35% on company profits
Tax rate: 15% flat on qualifying employment income (vs. up to 35% standard)
Main local banks: Bank of Valletta (BOV — largest Maltese bank), HSBC Malta, Lombard Bank, APS Bank

Personal Income Tax — 2026 Rates

Malta uses progressive tax rates across four household categories (single, married without children, married with 1 child, married with 2+ children). New brackets introduced for parents from 1 January 2026 significantly lower the effective rate for families.

Single rates (2026): 0% on €0–€9,100; 15% on €9,101–€14,500; 25% on €14,501–€60,000; 35% above €60,000
Employed single: effective zero-tax up to ~€12,445 (€12,000 income deduction for employees)
Married no children (2026): 0% on €0–€12,700; 15% on €12,701–€21,200; 25% on €21,201–€60,000; 35% above €60,000
Married — 1 child (NEW 2026): 0% on €0–€17,500; 15% on €17,501–€26,500; 25% on €26,501–€60,000; 35% above €60,000
Married — 2+ children (NEW 2026): 0% on €0–€22,500; 15% on €22,501–€32,000; 25% on €32,001–€60,000; 35% above €60,000
Pension income (2026): 100% exempt up to €16,636/year (up from 80% exempt / €13,309 cap in 2025)
Part-time employment: 10% flat rate, capped at €10,000/year employment or €12,000 self-employed
Overtime: 15% flat on first €10,000/year (if basic weekly wage ≤€375)
Social Security Contributions (employee): 10% of gross salary (matched 10% by employer); cap ~€51.60/week for those born on/after 1 Jan 1962
Social Security (self-employed): 15% of prior year's net income, paid via 3 provisional payments/year

Non-Domicile (Non-Dom) Regime — Malta's Core Advantage

Malta's non-dom regime is one of the most powerful in Europe, particularly following the closure of the UK non-dom regime in April 2025. Maltese tax residents who are not domiciled in Malta pay tax only on Maltese-source income and foreign income actually remitted to Malta. Foreign capital gains are COMPLETELY exempt — even if brought into Malta — making it superior to the former UK non-dom regime, which taxed remitted gains.

Qualification: anyone who is a Maltese tax resident (183+ days/year) but is NOT domiciled in Malta by origin or choice
Taxation basis: remittance — only Maltese-source income and foreign income actually transferred to a Maltese bank account is taxable
Foreign income kept abroad: completely outside Maltese tax net
Foreign capital gains: EXEMPT from Maltese tax regardless of whether they are remitted to Malta — a key advantage over the old UK non-dom regime and most EU countries
Minimum tax rule (since 2025): if your total worldwide income outside Malta exceeds €35,000, you must pay at least €5,000/year in Maltese tax, regardless of how little you remit; if foreign income is below €35,000, this minimum does not apply
Duration: Malta has NO deemed domicile rules equivalent to the UK's — you can remain non-dom indefinitely as long as you do not establish domicile in Malta
No inheritance tax: Malta has zero inheritance tax, zero wealth tax, zero gift tax
Capital gains on local property: final withholding tax of 8% on transfer value (or 2% in certain cases); shares in non-property companies are generally exempt from CGT
Practical example: A non-dom receiving €500,000/year in dividends from foreign companies, keeping it all abroad, pays 0% Maltese tax on those dividends. Even if they bring €200,000 to Malta, they pay only 15–35% PIT on that €200,000 (minus the €9,100 tax-free threshold) — and still 0% on the €300,000 kept abroad

Corporate Tax: 6/7 Refund System and New 15% FITWI

Malta's headline corporate tax rate is 35%, but the imputation/refund system enables shareholders to reclaim most of the tax paid by the company, reducing the effective rate to approximately 5% on trading income. From September 2025, companies can alternatively elect the new 15% FITWI (Final Income Tax Without Imputation) — paying a flat 15% with no refund mechanism.

Headline CIT rate: 35% on company profits
6/7 refund: Shareholders of trading companies receive a 6/7 refund of the tax paid → effective rate ~5%
5/7 refund: For passive interest and royalties → effective rate ~6.25%
2/3 refund: Where double tax relief was claimed → effective rate 2.5–6.25%
Refund mechanism: the company pays 35% CIT; after dividends are distributed, the shareholder (must be directly registered with Malta Tax) receives the refund — typically within 14 days to a few months
All beneficial owners must be disclosed to Malta Tax for refund registration
15% FITWI (from September 2025): an elective alternative; company pays 15% flat with no subsequent refund to shareholders — OECD Pillar Two compliance; cannot result in a lower effective rate than the traditional imputation system
Fiscal Unit: groups of 2+ Malta companies can consolidate as a single taxpayer and access the 5% effective rate without the refund delay cycle
No withholding tax on dividends paid to non-resident shareholders in most circumstances
Participation exemption: dividends and capital gains from qualifying shareholdings in foreign companies are generally exempt from Maltese tax

Highly Skilled Individuals (HQP) — 15% Flat Rate to 2040

Legal Notice 20 of 2026 replaced the old Highly Qualified Persons Rules with the new Tax Treatment of Highly Skilled Individuals Rules, consolidating all sector-specific frameworks (financial services, iGaming, aviation, VFA). The 15% flat rate on qualifying employment income applies to those earning above the minimum salary threshold, with the scheme extended to 2040.

Tax rate: 15% flat on qualifying employment income (vs. up to 35% standard)
Income cap at 15%: up to €5,000,000/year; amounts above €5,000,000 are not subject to any further tax
Minimum qualifying salary from 1 Jan 2026: €65,000/year (exclusive of fringe benefits) — significantly reduced from the prior €100,061/year minimum
Qualifying sectors: MFSA-licensed financial services; Malta Gaming Authority (MGA)-licensed remote gaming; Transport Malta-licensed aviation; Virtual Financial Assets (VFA/crypto) sector
Ownership restriction: cannot hold more than 25% (directly or indirectly) of the licensed company employing them
Duration (EEA/Swiss nationals): initial qualifying period + two extensions of 5 years each
Duration (third-country nationals): initial qualifying period + two extensions of 4 years each
Scheme sunset: extended to 2040 by LN 20/2026
Transitional: existing HQP beneficiaries do not need to reapply unless their role, employer, sector, or remuneration materially changes

Banking in Malta

Malta's banking sector is English-speaking, EU-regulated, and has a wide range of options from local banks to international specialists. Banking for new arrivals (especially non-EU nationals) can require more documentation than expected — proof of source of funds is taken seriously in Malta's AML-compliant environment.

Main local banks: Bank of Valletta (BOV — largest Maltese bank), HSBC Malta, Lombard Bank, APS Bank
International banking: Sparkasse Bank Malta, Mediterranean Bank, FIMBank — popular with HNW and business clients
Online alternatives: Revolut, Wise, N26 — widely used by expats for day-to-day EUR payments; Revolut has a Maltese banking licence (regulated by the MFSA)
Account opening: in-person visit required for local banks; bring passport, residence permit (once received), proof of address (utility bill or rental contract), source of funds documentation
AML compliance: Malta has strengthened AML rules significantly since 2021 (post-FATF greylist removal in 2022); expect extensive source-of-funds questions for large transactions or account opening
SEPA zone: full EU SEPA member — free EUR transfers within the EU
Currency: Euro; no FX risk for EU income; Wise/Revolut recommended for non-EUR currency conversions

Disclaimer: The information on this page is for general informational purposes only and does not constitute financial, tax, legal, or investment advice. Tax rates, regulations, and investment rules change frequently. Always verify data with official sources and consult qualified professionals before making decisions. Read full disclaimer

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