Malta

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

• Income tax rules were issued with respect to third country nationals who hold a valid nomad residence permit to work remotely from Malta.
• Emoluments payable under certain contracts of employment requiring the performance of work or duties mainly outside Malta may still be subject to income tax at a flat rate of 15%, subject to the satisfaction of certain conditions, which have now been updated.
• 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 revised and harmonised to cater for skills required by the Maltese economy.
• No stamp duty will be chargeable on the first EUR 750,000 of the transfer value upon transfers made by 31 December 2024 of vacant property, property in an Urban Conservation Area, and property with traditional Maltese features.
• No income tax will be chargeable on the first EUR 750,000 of the transfer value upon transfers made by 31 December 2024 of vacant property and property in an Urban Conservation Area.
• Reimbursement of value-added tax (VAT) on eligible expenditure related to the restoration and finishing of certain privately owned residential properties.
• Transfers of property to tenants who previously leased the same property for a number of years, under a scheme administered by the Housing Authority, will be exempt from final tax and stamp duty on the first €200k of the value of the property.
• 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).
• 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 to 31 December 2024.
• 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 2024.
• The reduced 2% stamp duty on acquisitions of property in Gozo is applicable upon transfers where the promise of sale was registered by 31 December 2023.
• 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 2024.
• The 7.5% rate of tax on income derived by players, licensed coaches and athletes will be extended to other persons engaged in sports activities.
• With effect from 1 January 2022, individuals receiving income from artistic activities conducted on a self-employed basis may opt to be taxed at 7.5% on the first €30k turnover for 2022 and €50k onwards
• Gross royalty income derived from the publication of literary works may be taxed at 7.5%.
• For calendar year 2024, the amount of pension income to be excluded from the taxable incomeincreased to 60% (from 40%) of the pension income, subject to a capping.
• As from 1 January 2024, widows’/widowers’ 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 2024.