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.

• 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 7.5% rate of tax on income derived by players, licensed coaches, and athletes will be extended to other persons engaged in sports activities.

• Individuals receiving income from artistic activities conducted on a self-employed basis may opt to be taxed at 7.5% on the first 50,000 euros (EUR).

• 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 income increased to 60% (from 40%) of the pension income, subject to a capping.
• As of 1 January 2024, widows’/widowers’/survivors' pension will no longer be taxable for individuals who have not attained 61 years of age.
• As of 1 January 2024, tax rebate thresholds on pension income have increased.