Malta Capital Gains Tax Guide 2026

Overview — No CGT on Shares and Securities

One of Malta's most attractive features for investors is the complete absence of capital gains tax on the disposal of shares, securities, bonds, and other financial instruments. This applies to both resident and non-resident individuals and companies. The tax treatment is clear: gains from the sale of movable assets (including shares, bonds, unit trusts, and other investment instruments) are not subject to tax in Malta. This makes Malta an ideal jurisdiction for investment holding and trading in financial assets.

Property Gains — 12% Final Withholding Tax

Gains from the transfer of immovable property (real estate) located in Malta are subject to a 12% final withholding tax (FWT) on the sale price (not the gain). The buyer is generally required to withhold the tax at source and remit it to the CFR. The seller receives a clean title with no further tax liability on the transaction.

Alternatively, the seller may elect to pay tax on the actual indexed gain (sale price less indexed acquisition cost and allowable expenses) at the standard progressive IIT rates (for individuals) or CIT rate (for companies), if this results in a lower tax liability. The indexed cost of acquisition is adjusted for inflation using official indices.

Primary Residence Exemption

The disposal of a primary residence (the individual's main home) is exempt from property gains tax if:

• The property was owned and occupied as the main residence for at least 3 consecutive years prior to the transfer
• The transfer occurs at least 3 years after the date of acquisition

If the primary residence is sold before the 3-year period, the gain may still be exempt if the sale is due to a change in employment location, marriage separation, or other justifiable circumstances. Only one property per individual can qualify as the primary residence at any time.

Corporate Capital Gains

For companies, gains from the disposal of participating shareholdings may qualify for the participation exemption, resulting in 0% tax on the gain. A qualifying participation is a holding of at least 5% or a minimum investment of EUR 1.16 million held for at least 183 days. Gains from non-participating shareholdings by companies are generally subject to the standard 35% CIT, but the imputation and refund mechanism applies on distribution.

FAQs

Are gains from cryptocurrency subject to CGT in Malta?

No. Malta treats cryptocurrencies as digital assets analogous to shares or securities for capital gains purposes. Gains from the disposal of crypto assets by individuals not carrying on a trade are generally not subject to capital gains tax (0% CGT).

Do I need to report share disposals to the CFR?

Generally no, as gains from share disposals are exempt from tax. However, if you are deemed to be trading in shares (as a business activity), the profits may be treated as trading income subject to standard tax rates. Professional investors and financial institutions should seek advice.

Is there a holding period for the primary residence exemption?

Yes, the property must be owned and occupied as the main residence for at least 3 consecutive years before the sale to qualify for the full exemption. If sold earlier, partial exemption may be available in certain circumstances.

Disclaimer

This guide provides general information about Maltese capital gains tax for the 2026 tax year. Tax laws may change. Always consult with a qualified Maltese tax advisor or the CFR directly for advice specific to your situation. InvestmentKit does not provide tax advice.