Malta

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

• The personal income tax bands were revised to reduce personal tax liabilities.
• Income tax rules were issued with respect to third country nationals who hold a valid nomad residence permit to work remotely from Malta.
• In the budget speech, it was announced that the Highly Qualified Persons Rules, which entitle expatriates to be taxed on their employment income at a 15% flat tax rate (subject to a number of conditions), will be extended also to qualifying employees employed with entities providing back office services.
• For calendar year 2025, the amount of pension income to be excluded from the taxable income increased to 80% (from 60%) of the pension income, subject to a capping. Furthermore, the tax rebates on pension income were revised.
• The exemption from stamp duty on the first Eur 750,000 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 2025.
• 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 2025.
• The exemption from stamp duty on the first EUR 200,000 on transfers of immovable property acquired by first-time buyers was extended to 31 December 2025.
• 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 2025.
• The exemption from income tax on capital gains upon certain transfers of shares listed on the Malta Stock Exchange was extended to certain transfers of shares listed on foreign stock exchanges that are recognised by the Commissioner for Tax and Customs (subject to conditions).
• 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 2025.
• Widows’/widowers’/survivors’ pension will no longer be taxable for individuals who have not attained 61 years of age.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 2025.
• As from 1 January 2025, there has been an increase of €250 in the annual tax credit entitled to the parents of children with disability resulting in a tax credit of €750 per year for each child.