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Malta Tax Rate

Malta is a hidden gem, an island, most popular for its weather, UNESCO world heritage site temples, and breathtaking coastline. Malta also permits its residents to hold dual citizenship. Getting citizenship in Malta is not a difficult task. In fact, Malta is a hot spot for people seeking second citizenship by investment. Being a citizen here provides various benefits to an individual, in addition to providing a powerful passport that is ranked number 4 on the passport index. Various investment benefits are available with no or less need to pay tax in Malta.

Tax Rates

Malta tax rates for personal income are progressive in nature. If one applies for Malta citizenship by investment program, it directly makes them a tax-resident of Malta. Therefore, it is important to understand the Malta tax structure. The residents of the country pay a 0 to 35 percent tax on their income earned from all sources worldwide. Tax on income sources from foreign sources is generally 15 percent. The tax rates also differ for single individuals, married couples and parents.

As compared to the other countries of the European Union, Malta is cheaper when it comes to taxation. The rates are more relaxed in comparison. The process of tax payment is also very friendly. There are no inheritance taxes or gift taxes or even municipal taxes in Malta. The stamp duty and processing fee is also minimal. The corporate tax rate is also 35 percent. For certain professional services like aviation, gaming, and financial services, there are tax exemptions available with certain provisions. This is done in order to attract professionals to the sector, especially foreign specialists.

Process to obtain citizenship

Application for citizenship by investment can be made only through accredited agents. The process is fast and efficient and usually does not take more than 4 months of processing time. The overall process of acquiring the passport may take up to 12-14 months. The citizenship need not be renewed for the lifetime of the individual. Under a single application, the whole family can apply for dual citizenship. The citizenship by investment can be passed through generations.

Benefits of citizenship

There are a number of benefits for someone who obtains citizenship through investment in Malta. It is a relatively stable and growing economy. No local Malta tax rates apply if you don’t live there for at least 6 months continuously. For people who enjoy traveling, it is the most beneficial as holding a passport here means visa-free travel to 124 countries and visa on arrival in another 41 countries including the United States and Canada. It also offers you a citizenship of the Europen Union. The payment of tax in Malta is relatively simpler to understand. This kind of citizenship planning offers one of its kind luxurious lifestyles.

Malta Tax and Citizenship

Given the benefits of acquiring citizenship in Malta, it is also one of the most expensive citizenships by investment. The Malta citizenship by investment program is fairly new but also one of the two programs in the whole of Europe that offer citizenship by investment. Under this program, a contribution to the Government Fund in Malta, an investment in government stocks or bonds and a real-estate investment will get you the citizenship of Malta.

However, there are very stringent criteria to be met and only after meeting those criteria is one eligible for citizenship through the above-mentioned ways of investment. Malta Individual Investor Program (MIIP) was created to encourage genuine investors to make high-value investments in the country. Eligibility components like the ‘fit and proper test’, good health, and a genuine link to Malta as a resident are what make the criteria stringent.

For an individual, a non-refundable contribution to the government fund worth €6,50,000 is to be made. There are additional expenses for a spouse, minor and other related members. For the application for a spouse, an additional €25,000 is required. The amount for every unmarried child between the age of 18 and 26 the amount of contribution is €50,000,  For real estate investment, a minimum amount of €3,50,000 is necessary. In the case of government-sanctioned bonds, the lower limit of investment is €1,50,000.


Malta is one of the most sought-after countries for citizenship especially because it permits dual citizenship. The benefits of holding a passport of this country are immense and the cost the process of applying for citizenship is minimal. However, the investment requirement for citizenship by investment is high. Before deciding on applying for citizenship, it is important to consider if one wishes to become a tax-resident of Malta. One may also consider the effects of being an EU citizen, given the current scenario. If you are planning to retire to Malta, this might be the best time to go through your planning. Book an appointment with us today to understand if citizenship by investment matches your tax strategies.

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