1. I am considering relocating to Malta, what tax rates will be applicable to me?
Maltese resident individuals are taxed at progressive rates of tax which fall within three categories, the ‘single’, ‘married’ and the ‘parent’ rates. The highest rate of tax is of 35%, which is only applicable to income in excess of €60,000 a year. For more information about tax rates, kindly refer to our article Malta Tax Rates and Dates 2016 by clicking here. In addition Malta offers various types of Residence Schemes that grant the beneficiaries a Special Tax Status.
For more information about these schemes kindly visit the FAQs on Residence in Malta.
2. What income and capital gains will be subject to tax in Malta?
Individuals who are ordinarily resident and domiciled in Malta are taxed in Malta on their world-wide income and capital gains. However, if you are either ordinarily resident or domiciled in Malta you are subject to tax in Malta on income and capital gains arising in Malta and on any foreign income that is remitted to Malta. Non-resident individuals are only subject to tax in Malta on income and capital gains arising in Malta.
For more information about the basis of taxation, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on email@example.com.
3. Am I allowed any deductions against my taxable income?
Yes, if you are engaged in a business activity, you are allowed to deduct all business-related expenses provided these are properly documented. There are also other personal expenses that are deductible for tax purposes, including alimony payments, school fees and childcare fees and fees paid in respect of tertiary studies.
For more information about both personal and business related tax deductions, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on firstname.lastname@example.org.
4. What tax declarations do I need to file with the tax authorities?
As an individual you need to file an income tax return and pay tax (if any) for each fiscal year (being a calendar year) by June of the following year. Malta’s income tax system is a self-assessment system thus you will be required to declare the taxable income and capital gains (if any) for that particular year in your tax return.
For more information about tax compliance obligations, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on email@example.com
5. Am I entitled to claim relief for tax paid abroad?
Yes, you are entitled to claim a credit for the foreign tax suffered, which is normally set-off against your Maltese tax liability, either by application of the applicable double tax treaty which Malta would have signed with the country in which you have paid tax or by means of provisions found in Maltese tax legislation.
For more information about double taxation relief, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on firstname.lastname@example.org.
6. If I relocate to Malta, am I subject to property, capital, wealth, inheritance and gift taxes?
Malta does not impose any property, capital, wealth, inheritance and gift taxes. A tax is however imposed on the transfer of certain capital assets, such as immovable property and shares.
For more information about taxation of capital gains, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on email@example.com.
Maltese companies are subject to tax at the rate of 35% on their world wide income and capital gains. Malta grants various fiscal incentives to both companies and their shareholders upon distribution of a dividend. Malta is a membe...Learn More
Setting up a Company
Setting up a company in Malta is a relatively straight forward procedure and can be set up within 2 working days, provided we are in receipt of all the information, funds and due diligence documentation we need. The Act that regulates Malte...Learn More
Taking up Residence
Warm climate, friendly people, excellent communication infrastructures, low criminality and many other features of the Maltese islands have made Malta an excellent destination for people to take up residence in. Moreover low rates of taxati...Learn More
In the last few years, a large number of remote gaming operators have established themselves in Malta and the Malta Gaming Authority has to date issued over 400 licenses. The Gaming Licenses There are four (4) different gaming licenses that a prospective applicant may apply for, being:&nb...Learn More
Malta has become a destination of choice for the setting up of Payment Institutions (also referred to as Payment Services Providers or PSPs). A number of advantages has contributed to this success, mainly but not limited to the fiscal incentives granted not only to the payment institutions ...Learn More
Electronic Money Institutions
Malta has recently seen an increase in the number of Electronic Money Institutions (EMIs) looking to set up their operations in Malta. This has been largely due to the growth in the e-commerce and the i-gaming industries. Such EMIs are regulated by the Financial Institutions Act and t...Learn More
Mergers & Acquisitions
We have over the past years acted for a number of international clients in various cross-border transactions, providing advice on all aspects of Maltese corporate structures. Our corporate and M&A practice provides advice on the following corporate matters. (a) Advic...Learn More
Prospects – Services of a Corporate Advisor
‘Prospects’ is a new platform set up by the Malta Stock Exchange in line with its commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability. Through ‘Prospects’, SME’s wil...Learn More
Assistance to Family Businesses
Malta has recently introduced legislation to encourage good governance in the management of family businesses, to assist family businesses to operate their business in an efficient way and to assist such family businesses to transfer their business from one generation to the other. Malta is...Learn More