The Maltese Tax System for Foreign Nationals: Key Benefits for Non-Maltese Domiciles

Malta’s non-dom tax regime offers expats the ability to secure residency in a stable, affluent EU country with a range of generous tax advantages, without the need to consider the complexity of changing their domiciliary status.

Those tax benefits are all down to the remittance-based system, which allows foreign nationals to become tax residents while remaining non-doms, and enables them to claim exemptions on foreign-source income in one of the world’s most tax-friendly locations.

Here we’ll explain what remittance taxation means, why it’s favourable, and the aspects of your circumstances that may affect your tax profile as an expat living in Malta.

The Contrasts Between Domicile and Residency for Maltese Tax Purposes

Domiciliary statuses are often misunderstood, but they refer to the domicile that is usually acquired automatically at birth. This is why many expats may remain British domiciles for life, despite living overseas for extended periods, unless they’ve taken decisive action to register a change of domicile.

In Malta, the remittance-basis tax system has a considerable impact on expats’ tax liabilities, because non-doms are typically only liable to pay local taxes on income arising in or transferred to Malta. This means that:

• Maltese taxpayers who are resident and domiciled in the country pay localised taxes based on their worldwide income and assets.
• Residents who aren’t Maltese domiciled, and remain non-doms, only pay income tax on earnings originating in or remitted to Malta and can claim an exemption on capital gains arising elsewhere, even if they are transferred to the country.

This differs substantially from many countries, which determine tax residency based on the proportion of a year each individual spends in each tax jurisdiction, and then apply domestic taxes to all the worldwide income and assets of every resident taxpayer.

Although Maltese expat non-dom residents do indeed establish tax residency, usually by spending at least six months a year there or through economic, personal or social ties, they are expected to retain some form of connection with their original home country.

That could be through remaining a foreign domicile, having property assets overseas, receiving a proportion of their income from abroad or otherwise showing that they have no intention of changing their domicile at any point in the future.

Advantages of the Maltese Non-Dom Tax Regime

Importantly, the Maltese non-dom regime is a tax status, not a visa, and expats must select the appropriate visa route based on their circumstances and eligibility. Many foreign nationals opt for the Malta Global Residence Programme (GRP) or alternatives like the Maltese Retirement Visa, and then establish non-dom tax status.

The benefits are compelling, with Malta’s tax system allowing for:

• Tax exemption on overseas income that is not transferred to Malta.
• Complete tax exemption on all capital gains arising in any location, whether transferred to Malta or not.
• Comparably low income tax rates on overseas incomes remitted to or received within Malta, with an upper tax bracket of 35%.
• Low annual minimum tax contribution thresholds, with a requirement to pay €5,000 per year, but only if a Maltese non-dom resident earns over €35,000 within the tax period.
• Exclusions from the above for foreign nationals who have relocated to Malta through a visa or permit programme with separate and additional tax benefits, including the Global Residence Programme and the Malta Retirement Programme. These routes have a minimum annual tax liability of €15,000 that overrides the non-dom tax regime but also offer a reduced flat-rate tax of 15% on foreign income transfers.

In addition, regardless of whether expats are eligible for or have applied for non-dom status, the Maltese tax system does not apply any form of estate, inheritance, or wealth tax, which can make a substantial difference to ongoing tax planning for affluent retirees.

Eligibility Criteria for the Maltese Non-Domicile Tax Programme

Malta has over 70 double taxation treaties with most major economies across the EU and beyond, which augments the tax benefits we’ve mentioned by ensuring that expats can continue to apply for tax relief against foreign taxes. However, a detailed review of each individual’s tax position is the best way to determine whether they are correctly applying all treaties and allowances.

This adds to the appeal of the small but densely populated island, which offers well-established tax benefits to foreign national residents with stable sources of overseas income who can demonstrate they will not be reliant on the Maltese state.

Applicants may, for example, be asked to provide evidence of an overseas income source and must be able to demonstrate financial self-sufficiency, depending on the visa route they choose. Some schemes, including the Global Residence Programme, set minimum annual incomes which exist separately from the non-dom tax system.

All prospective residents planning to claim non-dom tax treatment must also provide proof of comprehensive health insurance, a common visa condition, and be aware of the potential to trigger deemed domicile rules, which could exempt them from the generous exemptions we’ve covered.

Understanding the Benefits of Becoming a Maltese Foreign National Tax Resident

The tax advantages of the non-dom regime are particularly beneficial for professionals working across borders, high-net-worth individuals and families whose primary income originates outside Malta, and for retirees whose earnings are linked to overseas pension funds or retirement wealth.

For incomes that do become taxable, either because they arise from economic activities in Malta or are remitted, the income tax bands remain appealing when compared to those in the UK, with the current personal income tax brackets and rates as follows:

Note that these are the income tax rates applied to individuals. In contrast, married couples and those with children benefit from higher entry thresholds into each subsequent tax bracket, thereby reducing tax obligations for many.

For more information about the Maltese non-dom tax regime, general taxation, and any of the visa categories referred to, current or prospective expats are welcome to contact the local Chase Buchanan Private Wealth Management team in St Julian’s, or to arrange a convenient time for an introductory call via our contact form.

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*Information correct as at December 2025