Malta Personal Income Tax Guide 2026

Overview — Commissioner for Revenue (CFR)

The Commissioner for Revenue (CFR) is the tax authority responsible for administering all direct and indirect taxes in Malta. The tax year runs from 1 January to 31 December. Individual taxpayers must file an annual income tax return by 30 June following the end of the tax year. Malta operates a self-assessment system. The CFR provides an online portal for filing returns, making payments, and managing tax affairs electronically.

Tax residents are taxed on worldwide income. Non-residents are taxed only on Malta-source income at the same progressive rates but are not entitled to personal allowances. Malta has no withholding tax on dividends or interest paid to individuals.

Progressive Rates — 0% to 35%

Malta uses a progressive tax rate structure for individuals. For the 2026 tax year, the rates for a single individual are:

• 0% on the first EUR 9,700 of chargeable income
• 15% on income between EUR 9,701 and EUR 15,000
• 25% on income between EUR 15,001 and EUR 60,000
• 35% on income above EUR 60,000

Chargeable income is calculated as gross income less allowable deductions. Employment income is subject to Pay As You Earn (PAYE) withholding by employers. Self-employed individuals pay quarterly advance instalments.

Joint Assessment for Married Couples

Married couples may elect for joint assessment, which doubles the rate bands. Under joint assessment:

• 0% on the first EUR 19,400 of combined chargeable income
• 15% on income between EUR 19,401 and EUR 30,000
• 25% on income between EUR 30,001 and EUR 120,000
• 35% on income above EUR 120,000

Joint assessment is generally beneficial for couples where one spouse has significantly higher income. Couples may choose separate assessment if that produces a lower overall tax liability. The election is made on the annual tax return.

Personal Allowances and Deductions

Several allowances and deductions reduce gross income before applying the progressive rates:

• Personal allowance: EUR 9,700 for single individuals (effectively the 0% bracket)
• Married allowance: EUR 19,400 for couples electing joint assessment
• Children's allowance: Tax credits for dependent children under 18 (or up to 23 if in full-time education)
• Social security contributions: Employee contributions are deductible from employment income
• Pension contributions: Contributions to approved retirement schemes are deductible up to certain limits
• Medical insurance: Premiums for approved health insurance policies are deductible

Refund System Overview

Malta operates a full imputation system for corporate tax, meaning all company profits are taxed at 35% at the corporate level. When a company distributes dividends to individual shareholders, the shareholder receives a tax credit for the corporate tax already paid. Depending on the type of company, shareholders may also be entitled to additional tax refunds:

• Trading companies: 5/7 refund → effective rate ~11.7%
• Passive/holding companies: 6/7 refund → effective rate ~1.5%
• Investment companies: 2/3 refund → effective rate ~7.5%

This refund system makes Malta one of the most attractive jurisdictions for individual shareholders receiving dividends from Maltese companies.

Filing Requirements

All resident individuals with chargeable income exceeding EUR 9,700 must file an annual tax return by 30 June. Employees with only PAYE income may still need to file if they have additional income sources (rental, investment, business). The return is filed electronically via the CFR portal. Late filing penalties apply, and interest accrues at 0.33% per month on unpaid tax.

FAQs

Is the 35% top rate applied to all income above EUR 60,000?

Yes, for single individuals any chargeable income above EUR 60,000 is taxed at the marginal rate of 35%. For married couples under joint assessment, the 35% rate applies to combined income above EUR 120,000.

Do I pay tax on foreign income as a Malta resident?

Yes, tax residents are taxed on worldwide income. However, foreign-source income may be eligible for relief under Malta's double taxation treaties or the unilateral tax credit system to avoid double taxation.

Are capital gains taxable for individuals?

Generally no. Malta has no capital gains tax on shares and securities (0% CGT). Gains from property sales may be subject to a 12% final withholding tax or alternative basis, but primary residence is exempt after 3+ years of ownership.

Disclaimer

This guide provides general information about Maltese personal income tax (IIT) for the 2026 tax year. Tax laws and rates 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.