Plain-language pointers to the official tax rules that matter most to founders, freelancers, nomads and employees. Status labels are explained on the Starting in Malta home page.
10.1 How is a company taxed, and what do shareholders get back?
Maltese companies pay corporate tax at 35% on worldwide income and capital gains. When a company taxed at the standard rate distributes dividends, shareholders can receive a refund of part or all of the company tax, so that profits are not taxed twice.
The return and self-assessment are due nine months after the financial year end.
Official source: MTCA: Corporate Tax; Income Tax (corporate) (MTCA)
Status: 🟡 Needs checking · For: Founder
10.2 I live in Malta and earn income abroad. How is it taxed (remittance basis, non-domiciled residents)?
Tax residence is a question of fact and more than 183 days in Malta in a year makes a person resident for that year.
- People ordinarily resident and domiciled in Malta are taxed on worldwide income.
- People not domiciled or not ordinarily resident are on the remittance basis: Malta-source income is taxed, and foreign income is taxed only when received in Malta.
Foreign capital gains and income kept abroad are not taxed, and transfers for ordinary living expenses are presumed to be income remittances. A minimum annual tax of EUR 5,000 applies to non-domiciled individuals whose foreign income is EUR 35,000 or more (combined for couples), with exemptions for certain schemes.
Official source: MTCA: Tax Residence; Guidance Note on the Remittance Basis of Taxation (MTCA)
Status: ✅ Verified · checked 2026-10-21 · For: Nomads, freelancers
10.3 What tax rules apply to a Nomad Residence Permit holder?
Income from authorised work is taxed at 10% from 1 January 2024. Authorised work is remote work for a non-Malta-resident employer, or for non-Malta-resident clients if self-employed.
No tax is chargeable on that income before the end of 12 months from the later of the permit issue date or 1 January 2024, unless the holder declares to the Residency Malta Agency by 31 January of the following year that their Malta residence is not casual. Only the main applicant is covered.
If at least 10% foreign tax was paid and evidence reaches the agency by 31 March, no Maltese return is needed unless there is other chargeable income. Other income is taxed under the Income Tax Act.
Nomad status does not make a person tax resident, and a tax residence certificate can be requested from certificates.mtca@gov.mt.
Official source: MTCA: Nomad Residence Permits (Income Tax) Rules guidelines, S.L. 123.210 (12 March 2026) (MTCA)
Status: ✅ Verified · checked 2026-10-21 · For: Nomads
10.4 Which double tax treaties does Malta have, and how do I claim relief?
The MTCA table lists 78 jurisdictions with maximum withholding rates on dividends, interest and royalties. The page says it is only a general outline and the treaty text should be consulted.
Official source: MTCA: Malta Double Taxation Agreements in Force (MTCA)
Status: 🟡 Needs checking · For: Founder, freelancers
10.5 What income tax rates and bands apply to an employee or director, and how is payroll tax withheld?
For 2026, a single person pays:
- 0% up to EUR 12,000
- 15% from EUR 12,001 to 16,000
- 25% from EUR 16,001 to 60,000
- 35% above EUR 60,000
Separate tables apply to married persons, parents and families with children. Employers withhold tax through the Final Settlement System (see 7.5).
Official source: MTCA: Tax rates for individuals, 2026 (MTCA)
Status: ✅ Verified · checked 2026-10-21 · For: Employees, directors