Despite its size, Malta has been establishing itself as a digital economy attracting markets such as crypto and blockchain, while aiming to continue to do so within the artificial intelligence sphere. A competitive tax system has generated interest, whether within the digital economy as well as other industries, to make Malta their base for their business or for people to take up residence in Malta.
Why choose Malta?
Malta's tax system
A person’s liability to Maltese income tax is dependent upon two concepts, namely, domicile and residence.
Individuals that are both ordinarily resident and domiciled in Malta are subject to income tax on their worldwide income and certain capital gains.
Persons resident but not domiciled in Malta are taxable on any income and certain capital gains arising in Malta and on income arising outside Malta that is received in Malta. Such persons are not taxable on any capital gains arising outside Malta, whether received in Malta or not.
Furthermore, Malta does not levy any tax on wealth or capital accretion. There is also no inheritance or gift tax in Malta, except for a duty of 2-5% on certain assets, primarily immovable property situated in Malta and shares held in Maltese companies.
Individuals are subject to income tax at progressive rates of tax up to 35%, depending on their marital status for tax purposes (i.e., single, married, or parent).
In addition, Malta offers various special tax statuses for both EU/EEA/Swiss nationals and non-EU nationals. Furthermore, various immigration pathways are available, which grant residence rights in Malta to non-EU nationals.
An overview of special tax statuses and immigration pathways:
Further information on each status/pathway can be accessed through the respective links.
How can we help?
Our experts can provide professional assistance with tax and immigration matters including:
Why choose KPMG?
At KPMG in Malta we understand that individuals, albeit ambitious, look for peace of mind that the future will be secure. The decision to move to another country may not be an easy one, so minimising the complexities of your relocation is key. Whether you would like to retire, relocate with family members, or set-up a business in Malta, our experts can assist you in settling down in Malta successfully. Similarly, we assist private individuals in their outward relocation by working together with KPMG professionals in other jurisdictions, in order to ensure a continuous and consistent delivery of our services.
