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 30 - 11 - 2021

MALTESE TAX – A EUROPE’S TAX HAVEN

Maltese tax – Malta is such a “tax haven” of Europe with attractive preferential tax policies for both individuals and corporates in this country. Malta’s favorable tax policies work as the key to answer the question why Malta – an island country of Europe – is home to a number of big banks, luxurious car brands, and lots of headquarters of multi-national companies.

Maltese tax

Personal tax in Malta 

Personal tax rate varies on its residents, their permanent residence address and residence address. Maltese permanent residents and residents are obliged to be taxed on their income by Maltese Government, including overseas income and some particular capital gains. For those residing in Mata without a permanent residence address have to be taxed on their income gained in Malta as well as their overseas income transferred from outside the island (excluding capital gain).

tax personal

Malta allows married couples to opt for joint tax computation, accordingly, they are taxed on their total income gained in Malta and overseas income. 

Tax for a couple:

Income tax (EUR) Rate (5)
Below 12.700 0
12.701 – 21.200 15
21.201 – 60.000 25
60.001 and above 35

Married individuals can opt for separate computation with the following tax rate: 

Income tax Rate (%)
Below 9.100 0
9.101 – 14.500 15
14.501 – 60.000 25
60.001 and above 35

Corporate tax in Malta 

Corporates founded in Malta benefit from the tax policies and the refundable tax credits on dividend income. This tax policy is effective for both residence and non-residence shareholders. 

Malta corporate tax is levied on companies incorporated in Malta by Maltese residents (both Maltese citizens and non Maltese citizens). That company is taxed on its worldwide income. On the other hand, a company incorporated outside of Malta is considered operating in Malta (but not residing in Malta on a regular basis) if its operation is checked and controlled by Malta. Accordingly, that company is under obligation of paying tax on these following: 

  • On fee income earned in Malta or originated from Malta;
  • On all of the fee earned in Malta
  • On all of fee income arising outside Malta whether it is transferred to Malta or not.

Corporate tax rate in Malta is set at 35%. However, the actual tax rate levied on a company’s income and capital gains can be considerably reduced by participating in domestic dividend regime and the refundable tax credits. 

Maltese

Why is Malta a tax haven?

Malta imposes an extremely attractive tax system. International corporates located within this country will be entitled to a totally different tax program. Malta is also home to comparatively stable economy and politics. That is why it has become a popular choice by big companies to headquarter in. 

Moreover, Malta has joined the treaty on double taxation avoidance, together with about 60 countries. As a result, corporates in Malta are taxed 35%, but preferential tax programs are especially applied for non-resident company owners. 

Preferential tax policies in Malta – Maltese tax

Malta imposes preferential tax policies, and tax relief on individuals and corporates. Therefore, the tax rate is very low, which is just about 5%. Malta’s major taxes include: income tax, VAT, stamp duty, custom tax and special consumption tax. 

Malta levies no tax on:

  • Inheritance;
  • Net property;
  • Property;
  • Gift.

Besides, Maltese Government levies no tax on property purchase or inheritance. That is why lots of Vietnamese investors chose to invest in Malta, in which they can own a property in Malta yet save a considerable amount on tax as opposed to that of other countries, as well as seize the chance to obtain the permanent residence rights for their 4 generation family via the Malta Permanent Residence Programme (MPRP). 

Once successfully obtaining Maltese citizenship, investors are always eligible to enjoy the benefits exclusively catering European citizens. Malta always provides its citizens and corporates great tax benefits. 

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Conclusion – Maltese tax

To learn more about Malta – the “tax haven” of Europe, contact us at Portico & Bridge. Our company is pleased to present you our consultation service provided by the only one Maltese citizen staying in Vietnam at present, sir Trafford Busuttil, also our CEO. Sir Trafford was born and grew up there in the country of Malta, who will give you the most “authentic” sharing about Malta as a local expert. 

Call us at 0909.898.758

At PORTICO & BRIDGE, “Your Children We Care”.