An individual born in Malta who has resided outside of Malta for an aggregate period of 20 years, falling within a period of 25 years preceding the year in which the individual returns as a tax resident in Malta, and has returned to Malta after 1 January 1988, may opt to benefit from a 15% flat rate of tax on their chargeable income.
Eligibility Requirements
The eligible person has received in Malta, at one point or another, immediately preceding the year of assessment, an amount of income arising outside of Malta of not less than €14,000. The said amount of income shall be increased by €2,400 in respect to every dependant including a spouse.
Tax Implications
The minimum income tax liability of any eligible individual who elects to pay tax at the rate stated above and after taking into account any double taxation relief amounts to €2,325.
Any income and/or gains derived from Malta, will be deemed to constitute chargeable income and taxed separately at the standard applicable progressive rates of tax. Such income and/or gains are also deemed to constitute the last part of the eligible individual’s total income for the relative year.
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