Moving to a new country or expanding a business comes with financial responsibilities, and Malta is no exception. Taxes, costs, and compliances are a major part of the process, and getting some insights in advance is always best.
In this article, we’ll share a breakdown of the key things to know about managing finances in Malta.
Personal Income Tax vs. Corporate Tax Rates
Personal income tax rates range from 0% to 35%, depending on income, with special tax programs available for qualifying expatriates. Also, Malta has agreements with many countries to prevent double taxation, meaning foreign residents don’t have to worry about being taxed twice on the same income.
Businesses in Malta pay a corporate tax rate of 35%, but various refund systems and incentives bring the actual tax burden down, especially for foreign investors. Businesses in sectors like gaming, technology, and financial services may benefit from additional deductions or special tax schemes.
Die Cost of Living Depends on the Area You Choose
As in every other country, the cost of living in Malta depends on the area. Cities like Valletta and Sliema have higher housing prices, along with steeper costs for daily expenses like utilities and transport.
Smaller towns and rural areas are more affordable. If you’re planning to move, we suggest researching different neighbourhoods and their costs can help you set a realistic budget. Or, kindly refer to our team for professional relocation support, und we’ll assist you every step of the way.
Opening a Bank Account
It’s somehow impossible to live in a new country and manage finances smoothly without a bank account. You’ll need one for everyday transactions, including receiving a salary or handling business payments. Most banks will require proof of residence, identification, and, in some cases, documentation of employment or income.
Malta has a well-developed financial services sector, with options for investments, insurance, and asset management. Expats looking to manage their money effectively may want to explore the different financial products available.
Beiträge zur Sozialversicherung (Pensions and Healthcare)
Expats working in Malta must contribute to the social security system, which covers pensions and healthcare. If you’re employed, contributions are deducted automatically by your employer. If you’re self-employed, you’ll need to make these payments yourself.
Track the Exchange Rate Fluctuations
Since Malta uses the euro (€), those with income or investments in other currencies should keep an eye on exchange rate fluctuations. Changes in currency value can affect savings, salaries, or business transactions, so it might be worth consulting a financial expert for strategies to manage exchange rate risks.
Retirement Planning in Malta
For expats thinking about retiring in Malta, it’s useful to know how the local pension system interacts with pension schemes from other countries. Some individuals can claim pensions from multiple sources, so coordinating these benefits properly can result in a stable income in retirement.
Überprüfen Sie die Malta Retirement Program to find out if you meet the criteria.
Some Tips to Manage Finances in Malta
- Learn about tax rules – Look into tax benefits and double taxation agreements.
- Plan for living costs – Urban areas tend to be pricier than smaller towns.
- Set up a local bank account – Useful for handling salaries and payments.
- Stay on top of social security contributions – Ensures eligibility for future benefits.
- Monitor currency exchange rates – Important for those earning or saving in other currencies.
- Consider retirement options – Check how Malta’s pension system aligns with your home country’s.
Abschließende Überlegungen
Managing finances in Malta mostly comes down to learning the tax system, banking options, and cost of living. Knowing these important steps of the process will definitely make it simpler for you, whether you’re looking for work or setting up a business on the island.
For more information on this and other financial topics, feel free to visit expatax.mt.
Read Next
Erbschaftssteuer in Malta: Was Sie wissen sollten
Steuerbefolgung und Berichterstattung in Malta
Sozialversicherungsbeiträge in Malta
English 
Danish 
French 
German