Individuals who are resident in Malta and mainly work outside of Malta may benefit from a reduced tax rate of 15%.

Eligibility

A number of conditions must be satisfied in order to be eligible for the flat tax rate, which include:

The qualifying income must arise from a contract of employment, which requires the performance of work / duties mainly outside of Malta, and is for a period of at least 12 months;
The qualifying income is received in respect of (i) work / duties carried out outside of Malta, (ii) any period spent in Malta in connection with such work / duties, or (iii) any period on leave during the carrying out of such work;
The beneficiary was not present in Malta for a period (or periods in aggregate) that exceeds 30 days, disregarding any period in Malta on vacation / sick leave, or any period preceding / following the termination of the contract.

The benefit

A beneficiary may opt to be taxed at the flat tax rate of 15% on their income earned from such contract of employment.

How can we help?

KPMG in Malta can advise you on eligibility, its implications, and assist you in claiming this status. If you would like to know more about this status, or discuss any other personal income tax matter, please do get in touch with us.