Relocating to Malta offers with several tax advantages, especially if you’re planning to live and work in the country. However, to make the most out of these advantages, you need to inform yourself in advance about your tax situation and how to benefit from Malta’s favourable tax laws.
In this article, we’ve shared all our tips on how to plan ahead to maximize these benefits and understand the tax system like a local!
Why Pre-Immigration Tax Planning Matters
When moving to Malta, one of the first things to clarify is the difference between being a tax resident and qualifying for special tax status under the country’s various residence programmes. While special tax status can offer notable benefits, it doesn’t automatically make you a tax resident.
This means that without proper planning, you might miss out on tax opportunities that could help save you money in the long run. Understanding your options, how they work, and which best fits your situation is a key part of optimising your tax position.
Citizenship by Investment Programme Considerations
Those applying for Malta’s Citizenship by Investment Programme often bring large sums of money into the country. This can include contributions to the government, investments in bonds, property purchases, and other related fees.
However, it’s important to be aware that not all of these funds are automatically exempt from taxes. For example, funds transferred to Malta can be taxed if they are considered taxable income, even if they are used for investments or taxes themselves.
It’s worth taking the time to understand how Malta’s double taxation agreements work. These agreements can prevent you from being taxed on the same income in both Malta and your home country, helping you avoid unexpected tax bills.
The Non-Dom Tax Regime
One of the most appealing aspects of Malta’s tax system is the Non-Dom Tax Regime. If you’re a resident of Malta but not domiciled there, you will only be taxed on income generated within Malta or foreign income that is brought into the country.
This gives non-domiciled residents a significant advantage. Income and capital gains from outside of Malta are generally exempt from taxes, even if you transfer them into the country.
Domicile Considerations and Tax Planning Opportunities
Becoming a Maltese citizen through the Individual Investor Programme doesn’t automatically change your domicile status. Domicile is a legal concept, and changing it is not a straightforward process.
If you’re planning to move to Malta permanently and want to take advantage of the country’s tax system, it’s important to understand your domicile status, as this can have a significant impact on your tax obligations.
At the same time, those who are non-domiciled can benefit from Malta’s favourable tax environment for international business. Malta’s low corporate tax rates and the tax refund system for shareholders make it an excellent location for setting up companies and trusts, especially for those with global business operations.
Wrapping Up
Planning your taxes before moving to Malta can set you up for a stress-free transition and it’s a great strategy for you to maximize your financial benefits. Getting informed in advance, about the different tax statuses, how the Non-Dom tax regime works, and the rules around domicile are the main tips we suggest to benefit from Malta’s attractive tax system.
If you have more questions, or need further assistance, we’re here to help!
Sources
International investors on Malta’s double taxation agreements
English 
Danish 
French 
German