Tax analysis
Malta
Non-dom regime 15% on remittances. Min tax €5K/year. Nomad Residence Permit from $42K/year.
Last updated:
- VAT
- 18%
- Corporate
- 35%
- Dividends
- 0%
- Capital gains
- 0%
- Wealth
- —
- Days/year required
- 0
- Visa types
- Nomad Residence Permit, Permanent Residence Programme, HQP
- Difficulty
- Medium
- Paperwork
- ~8 wk
- Double-taxation treaty
- Yes (2005)
- Modelo 720
- Yes
- Exit tax
- >€4.0M
- Risk level
- Medium
Why Malta?
Malta is the EU option with a functional non-dom regime. For freelancers and investors with diversified income, the remittance basis system (you only tax what you bring to Malta) can deliver effective rates of 5-15% without leaving the EU. The cost: expensive life for a small island, slow banking system and notable bureaucracy.
General regime
IRPF brackets for ordinary residents (2025):
- €0 – €9,100: 0%
- €9,100 – €14,500: 15%
- €14,500 – €19,500: 25%
- €19,500 – €60,000: 25%
-
€60,000: 35%
VAT: 18%. Corporate: 35% nominal with 6/7 refund system (effective ~5%) for non-resident shareholders.
Non-dom regime (remittance basis)
If you're resident but not domiciled in Malta (which applies to foreigners):
- Taxation only on income remitted to Malta (not on foreign income kept outside).
- 15% flat on remittances under "Residence Programme" or "Global Residence Programme".
- Mandatory min tax: €5,000/year (Residence Programme) or €15,000/year (Global Residence Programme).
For EU freelancers with European clients invoicing into a non-Maltese account: only bring to Malta what you need to live; the rest doesn't tax.
Nomad Residence Permit (NRP)
Program launched 2021 for digital nomads:
- Min income: $42,000/year demonstrable.
- Duration: 1 year renewable up to 4 years.
- Special tax: 10% on nomad activity income (closed rate).
- Remote work for employer/clients outside Malta.
HQP (Highly Qualified Persons)
Regime for senior professionals hired by Maltese companies in specific sectors (financial services, gaming, aviation):
- 15% flat tax for 5-10 years depending on sector.
- Requires minimum salary (varies: ~€85K/year for gaming).
Spain-Malta treaty (2005)
- Covers dividends (5% withholding), interest, royalties.
- Standard tie-breaker rules.
- Fully applicable: both are EU.
Implications from Spain (medium risk)
- EU-EU treaty → Maltese tax certificate carries strong weight before Hacienda.
- But Malta is still Schengen and EU → economic substance audits are stricter than with third countries.
- Modelo 720 required if you keep Spanish assets.
- Main risk: declaring Maltese residency but continuing to work physically from Spain. Hacienda can request flight tickets, physical presence proof in Malta, real (not virtual) rental contract.