Malta

Individual - Significant developments

Last reviewed - 15 July 2020

The following are some of the more significant developments that were introduced in Maltese tax law during 2020:

  • Reduced rates of stamp duty and final tax on the first €400,000 transfer value on transfers of immovable property situated in Malta or real rights thereon.

  • 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 2020.

  • The exemption from stamp duty on transfers of immovable property acquired by first time buyers was increased to the first €175,000 of the transfer value and was extended to 31 December 2020.

  • Increases in the tax credits for personal pension plans and voluntary occupational pension plans.

  • As from 1 January 2020, a reduced rate of tax of 15% may apply on qualifying income from overtime work.

  • As from 1st January 2020 a final tax rate of 15% should apply on the first €100,000 consideration on the assignment of rights acquired under a promise of sale agreement  at 15%.

  • As from calendar year 2020, a married couple may now elect to receive a separate income tax return.

  • As from 1st January 2020 a final tax rate of 15% should apply on the first €100,000 consideration on the assignment of rights acquired under a promise of sale agreement  at 15%. 

  • Maximum amount of pension income exempt from income tax to be increased further in 2020.
  • The Malta Retirement Programme Rules were now extended to third country nationals
  • Beneficiaries receiving employment income of at least €52,000 from a qualifying contact of employment in the innovation and creativity industry may opt to submit an application 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, also for third country nationals. Furthermore, a one-time extension of 5 years is available.