Malta Announces Amount Foreign Residents Will Begin Paying as Tax From January 2027

• Malta announced new special tax rules for foreign residents holding special tax status, set to take effect from January 2027
• The rules establish a flat income tax rate on foreign-sourced earnings brought into Malta, with different minimum amounts depending on residency category
• Individuals who become long-term or permanent residents of Malta lose their special tax status and face a separate, higher tax rate on all income

Malta has announced the minimum tax amounts that foreign residents holding special tax status will be required to pay annually, starting from January 2027, under new rules published in the country's official legal gazette.

The regulations set a flat rate of 15% on income arising outside Malta that is received in the country by qualifying beneficiaries, their spouses, and eligible dependants.

Double taxation relief remains available under the rules for those who qualify.

How Much Foreign Residents Will Pay

The minimum tax figures vary depending on the category under which a person was granted special tax status.

Individuals granted status under the general residential categories face a minimum annual tax bill of €35,000.

Those granted status based on pension income received entirely in Malta are subject to a lower minimum of €15,000 per year.

A separate provision applies to beneficiaries holding special status under the United Nations pension or widows' and widowers' benefit category.

For this group, such pension income is fully exempt from income tax in Malta, but any other foreign-sourced income received in the country is taxed at the same 15% rate, with a minimum annual payment of €20,000.

Income that does not fall under the 15% rate is taxed as separate income at a higher rate of 35%.

When and How the Tax Must Be Paid

The minimum tax is due by 30th April of the year immediately preceding the relevant year of assessment. Payment must be accompanied by a compliance return confirming that all qualifying conditions continue to be met.

The minimum tax is payable in full both in the year special tax status is granted and in the year the individual loses that status. Importantly, any tax paid under these rules is non-refundable.

Foreign residents who become long-term or permanent residents of Malta automatically lose their special tax status and become subject to standard Maltese income tax rates on all income, regardless of where it originates or is received.

Authorised mandataries managing beneficiaries' affairs are legally required to check each year whether any beneficiary or dependant has crossed into long-term or permanent residency, and to notify the Commissioner accordingly.

Failure to do so within the stipulated timeframe attracts an administrative penalty of €10,000.

Malta lists minimum salary for fast-track work permit

Meanwhile, Legit.ng previously reported that Malta's Identità agency published the eligibility criteria for the Specialist Employee Initiative, a fast-track route to obtaining a Single Permit for non-EU workers.

The scheme requires third-country nationals to earn a specified minimum amount per year under a signed contract with a Maltese-registered company.