Malta

The following are some of the more significant developments that were introduced in Maltese tax law:

• Malta introduced the Tax Treatment of Highly Skilled Individuals Rules which entitle qualifying expatriates to be taxed on their employment income at a flat tax rate of 15%. These Rules replace and consolidate the Highly Qualified Persons Rules and similar Rules into one framework.
• The Tax Treatment of Highly Skilled Individual Rules also extend to senior executives employed by family offices or undertakings providing back office and treasury management operations services to family offices.
• The personal income tax (PIT) bands were revised to reduce personal tax liabilities for eligible parents.
• Guidelines with respect to income tax rules applicable to third country nationals who hold a valid nomad residence permit to work remotely from Malta were issued.
• For calendar year 2026, the amount of pension income to be excluded from taxable income increased to 100% (from 80%), subject to a capping. The exemption from stamp duty on the first 750,000 euros (EUR) of the transfer value of transfers of vacant property, property in an Urban Conservation Area, and property with traditional Maltese features was extended to transfers made by 31 December 2026.
• The exemption from final tax on the first EUR 750,000 of the transfer value upon transfers of vacant property and property in an Urban Conservation Area was extended to transfers made by 31 December 2026.
• The exemption from stamp duty on the first EUR 200,000 on transfers of immovable property acquired by first-time buyers was extended on a permanent basis. Furthermore, the exemption was extended to individuals who already own non-residential property. The reduced rate of 3.5% stamp duty on the first €200,000 of the value of inherited property used as own residence will now apply on the first €400,000.
• The exemption of stamp duty on the first EUR 86,000 of the value upon the acquisition of the second immovable property to be used as sole residence was extended for transfers that take place up to 31 December 2026.
• The reduced rate of 1.5% stamp duty with respect to gratuitous transfers of marketable securities owned by individuals and commercial tenements used in a family business to certain family members has been extended to 31 December 2026.
• In the budget speech it was announced that the capping in relation to the tax deduction for fees paid with respect to care centres for the elderly or disabled will be increased to €4,500.
• Widows’/widowers’/survivors’ pension will no longer be taxable for individuals who have not attained 61 years of age.
• In the budget speech it was confirmed that the current schemes offering deductions and tax credits under the Get Qualified Scheme and the Higher Education (Masters and PhD) Scheme will be continued in 2026.