Other Key Information for Malta Residents
Double Taxation Relief
Malta offers robust protection for its residents through double taxation agreements, ensuring that income is not taxed twice in different countries. Malta has a comprehensive network of these treaties with numerous jurisdictions. In cases where there is no agreement, Malta provides unilateral relief under domestic law, effectively minimizing the risk of double taxation.
Inheritance Tax
Malta does not impose any inheritance tax or death duties. However, duty is applicable on real estate transfers and shares in Maltese companies. The heirs of the deceased or the purchaser are responsible for this duty. Notably, there are exemptions available for share transfers in trading companies with more than 90% of business interests outside Malta, as well as for holding companies where the majority of shares are held by non-residents. Duty rates are as follows:
- Real Estate: 5%
- Shares: 2%
Schengen Zone and Uniform Residence Permit
Since joining the Schengen Zone in 2007, Malta offers the Uniform Residence Permit to non-EU citizens. This permit grants its holder the ability to travel freely throughout the Schengen Area for up to 90 days within a 180-day period, without the need for a visa. Applicants for the Uniform Residence Permit must have a registered place of residence in Malta.
Taxation in Malta
For tax residency purposes, an individual is considered a resident of Malta if they spend more than 183 days in the country during a calendar year. Malta taxes individuals on their Maltese-source income and capital gains, as well as foreign-source income that is remitted to Malta. However, foreign-source capital gains are not taxed, even if they are brought into the country. Taxation is based on the general income tax rates applicable to residents.
For further details on taxation in Malta use this link Tax Residence
