Income Tax payable by Permanent Residents

An expatriate may take up residence in Malta on obtaining a permit under Section 7 of the Immigration Act. The permit entitles the holder to a flat income tax rate of 15% (the first Lm2,500 in the case of a married couple and Lm1800 in the case of a single individual are tax-exempt), subject to a minimum annual liability of Lm1,000 (after double taxation relief). The tax is calculated on income and capital gains arising in Malta and on foreign income (excluding capital gains) remitted to Malta.

The permit is issued on an indefinite basis and does not subject the holder to any minimum periods of presence in Malta.

Double Taxation Relief

Double taxation relief is available in respect of tax levied in the following countries on income remitted to Malta: