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How to Benefit from Maltese Tax Rates
Updated at April 30, 2025 | by Admin
Malta has a flexible but progressive taxation system with tax rates ranging from 0% to 35%, having multiple categories for singles, married and parents as well as different tax brackets depending on the income generated. Moreover, your residency status and domicile can also be game changers to help you reduce your tax rates. Two people working on similar roles in the same company might be paying different tax rates, depending on their relationship status, one might be paying 15% while the other might be paying 25% tax. By filing your tax status wisely can save you thousands in Malta, here is what you need to know.
Key Factors Affecting Your Tax Rate
- Your residency status.
- Your Domicile.
- Your relationship status (Single, Married, Parent).
- Your income.
Key Takeaways
If you are domiciled and ordinarily resident in Malta, you are taxable on:
- All your income and capital gains arising in Malta.
- All your income and capital gains arising outside Malta.
If you are resident in Malta but not domiciled, you are taxable on:
- All your income and capital gains arising in Malta.
- All your income and capital gains arising outside Malta that you bring into Malta.
You are not taxable on:
- Income and capital gains arising outside Malta that you do not bring into Malta.
You will pay 0% tax rate if you are:
- Single and earning not more than 12,000.
- Married and earning not more than 15,000.
- Parents and earning not more than 13,000.
Highest tax rate for individuals is 35%.
Single Tax Rates
| Tax Bracket (€) | Tax Rate | Subtract (€) |
|---|---|---|
|
0 - 12,000 |
0% |
0 |
12,001 - 16,000 |
15% |
1,800 |
16,001 - 60,000 |
25% |
3,400 |
60,000+ |
35% |
9,400 |
Married Tax Rates
| Tax Bracket (€) | Tax Rate | Subtract (€) |
|---|---|---|
|
0 - 15,000 |
0% |
0 |
15,001 - 23,000 |
15% |
2,250 |
23,001 - 60,000 |
25% |
4,550 |
60,000+ |
35% |
10,550 |
Parent Tax Rates
| Tax Bracket (€) | Tax Rate | Subtract (€) |
|---|---|---|
|
0 - 13,000 |
0% |
0 |
13,001 - 17,500 |
15% |
1,950 |
17,501 - 60,000 |
25% |
3,700 |
60,000+ |
35% |
9,700 |
How to Pay Less Tax in Malta: Choosing the Right Tax Status
Malta’s progressive tax system offers different tax rates depending on your marital status and income situation. Choosing the right tax status can significantly reduce your tax burden, but the best option depends on your circumstances. Here’s what you need to know to optimize your tax filing.
1. Single Tax Rate vs. Married Tax Rate: Which is Better?
The key difference between Malta’s single and married tax rates lies in the deductions applied to your taxable income.
- If you’re single and living alone, use the single tax rate.
- If you’re married and your spouse has no income, the married tax rate is usually better because it offers a higher deduction, reducing your taxable income.
- If both spouses earn income, filing separately under the single rate is almost always better than filing jointly under the married rate.
Why
When both spouses work, combining incomes under the married rate means you lose out on two separate single-rate deductions. Instead, you get only one (slightly higher) deduction for the combined income, often pushing you into a higher tax bracket.