Malta’s residence non-domiciled (non-dom) tax regime offers attractive opportunities for individuals seeking an efficient and stable European base. The system allows foreign nationals who become resident in Malta but are not domiciled in Malta to benefit from a remittance-based taxation system, making Malta one of the most tax-efficient jurisdictions in the EU.
Under Maltese tax law, individuals are taxed in Malta based on their residence and domicile status:
Residents and domiciled individuals are taxed on their worldwide income, while residents who are not domiciled in Malta are taxed only on income and capital gains arising in Malta, and on foreign income remitted (brought) to Malta
Foreign-source income that remains outside Malta and foreign capital gains, even if remitted, are not taxable. This makes the regime particularly attractive for international professionals, retirees, and high-net-worth individuals with overseas income streams.
Since 2018, Malta has introduced a minimum annual tax of €5,000 for certain non-domiciled residents whose foreign income exceeds €35,000 and who remit less than this amount to Malta. Individuals must also ensure compliance with Malta’s residence requirements, typically defined as spending more than 183 days a year in Malta or establishing habitual residence.
Additional Benefits include
- No inheritance or wealth tax in Malta.
- Extensive network of over 70 double taxation treaties, ensuring relief from foreign taxes.
- Eligibility to apply under residence programmes such as the Malta Global Residence Programme (GRP) or Nomad Residence Permit, providing access to the Schengen Zone and long-term residence benefits.
Malta combines a favourable tax regime with a high quality of life, political stability, and a robust financial system. The residence non-domiciled regime remains a cornerstone of Malta’s appeal as a strategic European tax planning location.
Disclaimer
The above does not constitute tax or legal advice and is up to date on the date it was published. Please ensure that you take appropriate advice from tax or legal professionals before making any decisions based on the above.
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