Malta Tax Residency: Rules and Requirements in 2025 Explained

Malta is a popular relocation jurisdiction among expats thanks to its English-speaking environment and favorable tax regime. Becoming a Maltese tax resident requires meeting specific residency criteria, such as the physical presence requirements, and understanding how Malta’s remittance-basis system works.

In this guide, we will outline the rules and requirements for obtaining Malta tax residency. More specifically, we will discuss:

• Permits you need to become a tax resident in Malta
• Tax implications of holding Malta’s tax residency
• Strategies for minimizing tax liability as a Malta tax resident

What Are the Malta Tax Residency Requirements in 2025?

To become a Maltese tax resident, you are required to spend 183 days per calendar year in Malta, regardless of the purpose of your stay. 

Alternatively, you may be considered a tax resident in Malta if you demonstrate an intention to reside in the country ordinarily, even though your stay is shorter than 183 days. This implies establishing personal, family, and economic ties in Malta.

Maintaining the residency is pretty straightforward. Once you are considered an ordinarily resident of Malta, you will be considered a tax resident as long as you maintain your ties to the country.

Note that ordinary residence in Malta is not the same as permanent residence. The latter is a status you can apply for after legally residing in Malta for a minimum of five consecutive years. Individuals who become permanent residents in Malta are issued a renewable ten-year residence permit. 

How To Become a Tax Resident in Malta

There are several options for obtaining tax residency in Malta, and the route you take will depend on: 

• Your goals
• Personal circumstances
• Financial situation
• Whether you are an EU national

While citizens of the EU do not need a visa to move to Malta and become its tax residents, non-EU nationals must apply for a residence permit. These permits allow non-EU nationals to legally reside in Malta and secure tax residency in the country.

Non-EU nationals can get Malta’s Ordinary Residence permit through employment or self-employment in Malta. However, for those looking for a pathway to Maltese tax residency that provides favourable tax treatment and supports their lifestyle and investment goals, the following programs may be a better option:

1. Global Residence Program
2. The Malta Permanent Residence Program

Global Residence Program

In 2013, the Global Residence Program (GRP) replaced Malta’s High Net Worth Individuals Residency Scheme, designed to attract wealthy foreigners to Malta by providing favourable tax treatment. 

Under the Malta tax residency rules in 2025, the GRP grants a residence permit to non-EU nationals who meet the following conditions:

• Spend no more than 183 days in any other jurisdiction during the calendar year
• Are not domiciled or have permanent residency in Malta
• Pay a non-refundable €6,000 administrative fee
• Commit to a minimum annual tax payment of €15,000
• Rent or purchase a qualifying property in Malta

A qualifying property is determined by its location and value as follows:

Location	Minimum Value of Rental Property	Minimum Value of Acquired Property
South of Malta, or the island of Gozo	€8,750	€220,000
Elsewhere in Malta	€9,600	€275,000

Those who qualify for the GRP pay a 35% tax on income and gains generated in Malta. Income sourced outside of Malta is tax-free, unless it is brought into the country, in which case it is taxed at 15%. Additionally, capital gains accrued abroad are tax-free even if they are remitted to Malta.

Eligible applicants can also bring their immediate family to Malta under the GRP. This includes their spouse, as well as dependent children, parents, and siblings. 

The Malta Permanent Residence Program

The Malta Permanent Residence Program (MPRP) grants a Maltese residence permit to HNW investors outside of the EU, EEA, and Switzerland. The program received an update on January 1, 2025, which raised and changed the original requirements.

As of January 1, 2025, MPRP applicants must demonstrate that they own one of the following:

1. Assets worth at least €500,000, with a minimum of €150,000 in financial assets
2. Assets valued at €650,000, out of which at least €75,000 is in financial assets

In addition to this, the applicants must fulfill the following conditions:

MPRP Requirement Category	MPRP Required Investment
Property	An applicant must purchase a property worth at least €375,000 in Malta or Gozo or is required to rent a property with a minimum annual rent of €14,000 in Malta or Gozo
Administration fee	Each applicant must pay a non-refundable €50,000 administration fee
Contribution	A contribution of €60,000 is required for those who rent property, and €30,000 for those who purchase it
Dependant contribution	The program permits applicants to bring their dependents to Malta for a contribution of €10,000 per dependant

Unlike GRP applicants, those approved under the MPRP are granted permanent residence in Malta, which enables them to reside in the country legally and indefinitely. However, their tax obligations will depend on their domicile.

What Are Your Tax Obligations After Obtaining Tax Residency in Malta?

Unless you obtain a residence permit that operates under a specific tax regime, like the GRP, your tax obligations as a tax resident in Malta depend on your domicile. 

Generally, individuals who are both ordinarily or permanent residents and domiciled in Malta are taxed on their worldwide income and gains. Meanwhile, ordinarily or permanent residents who aren’t domiciled in Malta are taxed on: 

1. Income and gains sourced in Malta 
2. Foreign income and gains remitted to Malta

While you can hold tax residence in multiple countries, your domicile can only be in one state. Additionally, tax residency is a short-term status that typically must be maintained annually, whereas domicile is the place you consider your permanent home throughout your life.

You can change the latter by moving permanently to Malta and severing ties to your previous home country. In this case, you will be taxed as an ordinarily domiciled resident of Malta.

Tax for Domiciled Ordinarily Residents in Malta

Ordinarily domiciled residents in Malta are liable for income tax at a progressive rate of up to 35%, depending on the amount of their worldwide income. The highest 35% rate applies to earnings that exceed €60,000. 

Other taxes you may be subject to as a Malta tax resident domiciled in the country include:

Tax Liability	Tax Rates for Ordinarily Domiciled Residents
CGT on immovable property	Withholding tax rate of 8%–10% (or 12%–15% in limited circumstances, like transferring a donated property)
Dividends	Standard progressive rate of up to 35%
Investment interest	15% withholding tax
Rental income	15% tax on the gross rental income

Additionally, Malta does not have wealth, estate, gift, or inheritance taxes. This makes it an attractive relocation option for high-net-worth individuals seeking tax-efficient estate planning opportunities.

Tax for Malta’s Tax Resident Non-Domiciled Individuals

As a foreigner who still holds a permanent home in another country but has become a tax resident in Malta, you are subject to special Malta tax residency rules for non-domiciled individuals or non-doms.

Maltese non-dom tax residents are taxed exclusively on income generated in Malta. Foreign income is generally tax-free and subject to tax only when it is brought or remitted into the country. However, there are two exceptions to this rule: 

1. Capital gains accrued outside of Malta are tax-free, even if they are remitted into Malta
2. A tax of at least €5,000 applies to individuals or married couples who earn over €35,000 per year in income outside of Malta, whether the funds are remitted to Malta or not

As a foreigner, you can retain the non-dom status in Malta indefinitely, allowing you to enjoy this favourable tax regime as long as you continue to hold a permanent home abroad.

Do You Have To Obtain a Tax Residency Certificate in Malta?

Satisfying the criteria for Maltese tax residency automatically means you are a tax resident in Malta, even without Malta’s tax residency certificate. The certificate is necessary to formalize your tax status, not to obtain it.

The Maltese tax residency certificate confirms your tax residency for purposes like: 

• Claiming the available tax reliefs and deductions
• Securing tax benefits as a Malta tax resident, non-domiciled individual
• Avoiding misunderstandings regarding your global tax obligations

To get the certificate, you must complete the tax residency certificate application form (RCTR02). The form requires you to provide personal details, proof of your ties to Malta, and a declaration that you have settled your tax obligations. 

Once your application is processed and verified, the Office of the Commissioner for Revenue in Malta issues the tax residency certificate, allowing you to submit it to the relevant tax authorities.

How Can You Reduce Taxes as Malta’s Tax Resident?

A popular strategy for minimizing tax liability while maintaining tax residence in Malta is to ensure your domicile remains outside of the country. This allows you to be taxed on a remittance basis, which means you are exempt from Maltese tax on income earned abroad unless it’s brought to Malta.

In addition to this, you may qualify for tax relief under one of the following:

1. Double taxation agreements
2. Tax laws of your home country

Double Taxation Agreements

A double taxation agreement (DTA) is a treaty between two countries that outlines taxation rules in case both countries have the right to tax specific types of income. This typically happens when you are a tax resident of both countries.

Malta has a DTA with over 80 countries worldwide, including the United States, the United Kingdom, and Australia. 

To prevent double taxation, a DTA includes provisions that grant the primary taxing right to one of the contracting countries. It may also allow the affected individual to claim a tax credit for taxes they’ve already paid in one country against their tax bill in the other.

Tax Laws of Your Home Country

If a DTA does not apply, you may reduce your tax obligations by claiming a tax relief under your home country’s tax law. This is particularly useful for nationals of countries that tax their citizens on worldwide income regardless of tax residency, such as the U.S.

For instance, as a U.S. citizen, you can use the Foreign Tax Credit (FTC) to claim a dollar-for-dollar tax credit in the U.S. for taxes paid or accrued abroad. 

U.S. expats may also qualify for the Foreign Earned Income Exclusion (FEIE), which allows them to exclude up to $130,000 from U.S. taxation in 2025. 

To ensure you understand your cross-border tax implications after becoming a Maltese tax resident, as well as successfully incorporate the available tax relief mechanisms, partner with Nomad Capitalist.

Maximize the Advantages of Malta’s Tax Residency With Nomad Capitalist

Nomad Capitalist has developed efficient relocation strategies for over 1,500 high-net-worth clients, helping them secure residency across various global jurisdictions. Our personalized strategies take into account your personal and financial circumstances to ensure you meet your relocation goals.

With our 360-degree Action Plan, designed to accommodate your specific financial and lifestyle needs, we assist you in:

• Navigating offshore banking and tax structuring
• Obtaining second residencies or citizenships through investment, descent, or naturalization
• Selecting the best international banks and accounts for both personal and business needs

To receive your Plan, you need to complete a short questionnaire to determine if we are a good fit. If so, we will: 

1. Schedule and conduct a one-on-one call to understand the details of your relocation goals better
2. Prepare a step-by-step Action Plan that aligns with your needs and circumstances
3. Present and implement the Plan over a 12-month period
4. Provide ongoing support with questions, renewals, and admin work

Through Nomad Capitalist, you can structure your wealth strategically to optimize your global tax position and ensure a smooth relocation to Malta, without the burden of handling administrative tasks yourself.