Financial Advice for Expats in Malta

Expats living in Malta, and in any overseas destination, need to understand and account for cross-border tax rules, residency status requirements, pension transfer options and investment considerations, ideally before they relocate. Our accomplished, regulated financial advisers with international expertise both in the UK and in Malta can help you to:

• Optimise your finances and evaluate the contrasts between the UK and Maltese tax systems
• Understand Malta’s residency options and the financial impact of becoming a tax resident, permanent resident, domicile or citizen.
• Choose compliant, tax-efficient investments and pension structures that make the best use of the varied Maltese schemes, visas and residency programmes
• Navigate the non-dom regime in Malta, recognise how UK assets will be subject to taxation, and avoid costly mistakes when applying double tax treaty rules.

Tailored advice will ensure that you make the most of Malta’s tax-advantaged schemes, while protecting your global wealth and overall financial well-being.

As an expat, you’ll typically be considered a Maltese tax resident if you spend 183 days or more in the country within each year. However, this is very simplified and, for example, you could also be classified as a tax resident based on where your primary home is, how long you intend to stay, and any property ownership or familial ties to Malta.

It is always vital to establish your tax residency status correctly to avoid complications, and our advisers can assess your position and help you determine how tax treaty residency criteria apply and how this affects your global income.

Malta’s Resident Non-Domiciled Tax Regime allows qualifying expats to be taxed only on income remitted to Malta, rather than their worldwide income. The benefit is that expats can potentially reduce their tax exposure on foreign earnings, pensions and investments by a significant margin.

We help clients determine their eligibility, ensure compliance, and plan income efficiently to maximise the benefits of this tax treatment – or consider whether alternatives like the Global Residence Programme or Retirement Programme would be more suitable.

Your tax position as a foreign national living in Malta will greatly depend on whether you are categorised as a tax resident or a non-tax resident, and whether you are domiciled in Malta.  Some of the tax liabilities you may need to budget for include:

• Personal income tax of up to 35% on Maltese-sourced income or income remitted to Malta
• Transfer Taxation against the sale or transfer of real estate and some inherited assets. 
• Taxation against UK-based incomes, such as pensions, property or dividends, which will be taxed depending on the nature of the income source, and your tax residency status

While Malta is widely considered a tax-friendly country, and there are typically no taxes levied on foreign gains not remitted to Malta, we’ll help you build a compliant, tax-efficient strategy tailored to your residency status and income sources.

If you are a tax resident in Malta or a non-tax resident with Maltese income, you will be expected to submit an annual tax return. This will include:

• Declarations of all taxable employment, rental, pension, or investment income
• Reporting any remitted foreign income, including dividends, interest, taxable gains and offshore business earnings 
• Claiming tax credits or treaty reliefs where applicable to ensure taxes paid at source in the UK, or those that become payable are not duplicated within Malta

Budgeting and declaring your taxable income accurately is essential, and our taxation professionals will ensure that your returns are submitted correctly and on time, while claiming all eligible allowances.

Yes, you can transfer a UK-based pension fund to Malta. However, this isn’t necessarily the most beneficial option, and you must compare the various transfer solutions before making any irreversible transactions, which could incur a substantial tax burden. 

While  UK expats in Malta often transfer pensions to a Recognised Overseas Pension Scheme (ROPS), which can offer tax advantages, investment flexibility and easier currency management, they need to account for the administrative costs and the potential exposure to the Overseas Transfer Charge.

This taxation is levied at 25% on UK funds transferred outside of Britain that exceed a threshold of £1.073 million – but alternative pension transfer options, such as a Self-Invested Personal Pension (SIPP), can provide a way to avoid unnecessary taxes while also gaining greater choice about how pension assets are invested and accessed. 

Our in-house pension transfer advisers can assess your pension plans, products and assets and advise on whether a ROPS, SIPPs, or alternative transfer, or keeping your UK scheme as-is, would be most beneficial for you.

Malta does not impose an inheritance tax, but stamp duty at a standard  5% rate may apply to real estate and shares transferred to estate beneficiaries. There is also a forced heirship system in place, which can dictate how assets are distributed if provisions haven’t been made to protect against this.

Our succession planning specialists can offer guidance on:

• Drafting Maltese-compliant wills and updated UK wills to ensure they are recognised 
• Minimising UK Inheritance Tax (IHT) exposure
• Structuring trusts or gifts to protect your legacy and preserve the value of your estate for your intended heirs

Inheritance planning is necessarily complex, and we strongly advise any expat to seek independent, expert advice to ensure they make informed decisions – particularly following recent UK forms which may have a meaningful impact.

As with any asset, your tax liabilities will depend on whether you are a tax resident and domiciled in Malta or a non-tax resident. Malta’s system varies from many other countries in that ‘ordinary residents’ who aren’t domiciled pay taxes on a remittance-based system.

This means assessing your tax status and applying tax treaties accurately is essential. If you own property in Malta, the tax responsibilities you may need to be conscious of include:

• Stamp duty, charged at a standard 5% on most property purchases or transfers
• Property Transfer Tax (FWT) on sales, applied at rates from 5% to 15% depending on how long the residence has been owned, with exemptions for primary homes held for at least three years.
• Annual maintenance charges, taxes against rental incomes, and tax filing obligations

We provide support for expats planning on buying, holding, or selling property in Malta to ensure they understand how best to manage those assets tax-efficiently, and how to time transactions strategically to mitigate higher tax obligations.

There is no one ideal strategy that will ensure all investment products, assets, and structures are tax-efficient, since this will vary based on the size, location, diversification and risk profile associated with your investment portfolio. 

Our seasoned investment advisers and managers  help expats manage their portfolios with a focus on bespoke planning to ensure they take advantage of the favourable tax treatments built into Malta’s framework, including:

• Minimising foreign exchange risks on overseas income remitted to Malta or utilising flat, low-rate taxes applied on foreign-sourced earnings
• Using compliant offshore investment platforms or structures where relevant
• Managing capital gains that are outside of the scope of Maltese taxation, or ensuring allowances that remain claimable in the UK are utilised before a move
• Avoiding double taxation on global investment incomes by applying double tax treaties correctly and compliantly

All the investment advice we provide is wholly personalised based on your residency position, domicile status,  risk tolerance, and the point at which you anticipate drawing on your investments.

Creating a detailed, future-focused plan ensures that you’ll have already given thought to key financial decisions far in advance of a relocation. While every expat’s plans will depend on their priorities and situation, we’d suggest, as a minimum, you consider:

• Your retirement strategy, including whether you will retain, transfer or restructure UK pensions and the impacts on your tax exposure in the UK and Malta
• How best to align your investment portfolio with cross-border tax liabilities and long-term income expectations
• Estate and inheritance structuring to protect assets and preserve the value of your estate for future beneficiaries
• Income planning, and the potential benefits or drawbacks of applying for tax-efficient residency schemes in Malta, such as the Malta Global Residence Programme (GRP).
• Whether you have sufficient health and life insurance coverage that will remain suited to your needs as an international expatriate

We can, of course, offer more tailored, independent planning advice on demand, regardless of whether you are retiring in Malta, setting up a business, relocating as a family or taking up an offer of employment.

There are several high-demand visas, programmes, schemes and permits available for foreign nationals relocating to Malta, and the most relevant will depend on your reason for moving and your personal circumstances. Some of the common routes for expats include:

• Residence permits for EU nationals wishing to settle in another European country
• The Malta Global Residence Programme (GRP), which provides an option for affluent non-EU nationals and offers flat-rate tax rates for foreign income transferred into the country
• The Malta  Nomad Residence Permit for remote workers who can live and work in Malta for up to one year, subject to minimum income requirements
• The Citizenship by Merit scheme for high-net-worth investors, and the Malta Residence by Investment Programme.

Chase Buchanan’s Maltese team can guide clients through the financial and tax implications of each of these and other options, including reviewing the eligibility requirements for those intending to apply for national identity cards and establish long-term residency.

Malta has over 70 double taxation agreements, including with the UK, which set out the rules by which foreign nationals are categorised as tax residents, and therefore how their income and assets within Malta and internationally are taxable. The relevant aspects of the double tax treaty to you may include:

• Preventing duplicate taxation on pension, dividend, and employment income
• Allowing you to claim foreign  tax credits in Malta for taxes paid abroad
• Helping you to  avoid either paying withholding taxes, where unnecessary, or reducing your overall tax liability

Our cross-border team can provide further information about Malta’s double tax treaty, how this relates to your tax position, and will ensure you are taking full advantage of treaty reliefs to avoid unnecessarily high taxation.

Comprehensive insurance is often considered vital for expats because even the most careful planning cannot foresee every eventuality when relocating overseas. As independent wealth management experts, we can help expats choose tailored cover for:

• Life insurance and critical illness coverage
• Income protection for professionals
• Private medical insurance – often a mandatory condition for visa applicants

All the policies and providers we may suggest are appropriately regulated, with portable coverage that is fully valid within Malta, and structured according to your needs.

The costs of enrolling children in prestigious international schools and private higher educational establishments abroad can be significant, and create financial pressure for expats living in Malta who haven’t factored these outgoings into their budgets. 

We can assist at any stage, whether you need to project future childcare, school and university costs, wish to set up tax-efficient savings plans, require guidance on currency risk management when investing overseas, or would like to review all of the appropriate long-term investment options.