Malta

Individual - Significant developments

Last reviewed - 08 February 2022

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

  • 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), have been extended.
  • Beneficiaries receiving employment income of at least EUR 52,000 from a qualifying contract of employment in the innovation and creativity industry may opt to submit an application to be taxed at 15%.
  • The Qualifying Employment in Aviation (Personal Tax) Rules are now applicable for five consecutive years from when one is first liable to income tax in Malta, as well as for third country nationals. Furthermore, a one-time extension of five years is available.No stamp duty will be chargeable on the first €750,000 of the transfer value upon transfers of vacant property, property in an Urban Conservation Area and property with traditional Maltese features.
  • No income tax will be chargeable on the first €750,000 of the transfer value upon transfers of vacant property and property in an Urban Conservation Area.
  • The income tax rate on qualifying income from part-time work was reduced to 10%.
  • The reduced tax rate of 15% on qualifying overtime is now available up to a maximum income of €10,000.
  • Income derived from the assignment of a promise of sale that is made by 31 December 2022, is subject to a flat tax rate of 15%.
  • A 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 up to 31 December 2022.
  • The exemption from stamp duty on transfers of immovable property acquired by first-time buyers was extended to 31 December 2022.
  • The reduced stamp duty on acquisitions on property in Gozo was extended for another year.
  • The exemption of stamp duty on the first €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 2022.
  • In the budget speech it was announced that a lower income tax rate of 7.5% will apply to artists, with effect from 2022.
  • In the budget speech it was announced that pension income will gradually no longer be considered as part of the taxable income. 
  • The Get Qualified Scheme was extended to courses of studies starting by 2023.