If you have just got a job offer from Malta? Or wishing to pursue your career in Malta? This guide about how much tax you really pay in Malta is going to be a gold mine for you. Despite being a small Island, Malta has become a center of focus for job seekers across all European countries. Malta offers thousands of skilled and non-skilled job opportunities for both remote workers and relocators every year. The fuel for this ever green job market is the business friendly approach of the Maltese government which tends to attract more foreign businesses. So, finding work opportunities in Malta is easier than ever but before accepting an offer you must know what really is ahead.
Why knowing tax system is important
The more research you do before accepting an offer, the better you make a decision. Not all the countries in the world use the same tax structures, rates, and types. Before moving to a new country, knowing its taxation system, cost of living and other financial factors is important. Because people often leave their home countries for better opportunities.
On a job offer letter, what may seem to be a great opportunity, can turn out to be a disappointment. If you are in a hurry and don’t want to do the long research, use a tool like the Malta salary calculator to calculate your net home pay and taxes payable in Malta. Knowing the taxation system of your destination country helps you make an informed decision. This can leave long-lasting and positive effects on your career.
Is Malta a high tax country?
Malta is not generally considered as a high tax country as it has a progressive tax system, meaning that the amount of tax you pay depends a lot on your income. High earners pay higher tax, while low earners pay lower tax. This is a fair distribution of tax burden on the whole working community.
Tax Rates in Malta 2025
As mentioned above, Malta has a progressive tax system, the more you earn the more you pay taxes. Apart from your income, your payable amount of tax also depends on your marital and parental statuses.
Single Rates
| From(€) | To(€) | Rate | Subtract |
| 0 | 12,000 | 0% | 0 |
| 12,001 | 16,000 | 15% | 1,800 |
| 16,001 | 60,000 | 25% | 3,400 |
| 60,001 | and over | 35% | 9,400 |
Single workers earning €12,000 or less in Malta are not taxed on their income. Any amount of income more than €12,000 is subject to a specific tax rate.
Married Rates
| From(€) | To(€) | Rate | Subtract |
| 0 | 15,000 | 0% | 0 |
| 15,001 | 23,000 | 15% | 2,250 |
| 23,001 | 60,000 | 25% | 4,550 |
| 60,001 | and over | 35% | 10,550 |
Married workers with no child earning €15,000 or less in Malta are not taxed on their income. Any amount of income more than €15,000 is subject to a specific tax rate.
Parent Rates
| From(€) | To(€) | Rate | Subtract |
| 0 | 13,000 | 0% | 0 |
| 13,001 | 17,500 | 15% | 1,950 |
| 17,501 | 60,000 | 25% | 3,700 |
| 60,001 | and over | 35% | 9,700 |
Parents earning €13,000 or less in Malta are not taxed on their income. Any amount of income more than €13,000 is subject to a specific tax rate.
How to pay less tax in Malta?
By having a good knowledge of Malta’s flexible taxation system, you can avoid unnecessary taxes and save a reasonable amount. Along with the amount of your income, marital and parental statuses, your residency and domicile statuses also play key roles in your tax calculations.
Tax Residency in Malta
In order to be considered as tax resident of Malta, a person has to meet any of the following conditions:
- Stay in Malta for 183 days or more in a single calendar year. After 183 days spent in Malta, a person is considered a tax resident regardless of its purpose of stay.
- Establish residency through different residency programmes. In this case, the person will be considered a tax resident from the date of arrival in Malta.
- Live legally in Malta for longer periods, generally five years.
- A person visiting Malta on a regular basis for more than three years even if not staying for 183 days in any visit can also become a tax resident if established personal and economic ties with Malta.
Residents vs Non-Residents
Both residents and non-residents are not taxed the same way in Malta. Residents who are also domiciled in Malta are taxed on their entire income irrespective of whether it is earned within Malta or outside Malta. Non-residents or non- domiciled residents enjoy a benefit here, they are not taxed on any income generated outside Malta which is not remitted to Malta. But if it is remitted to Malta, it will also be taxed.
Malta’s DTA Network
Malta has agreements with many countries called Double Taxation Agreements (DTAs). These agreements make sure you don’t have to pay tax twice on the same income — once in Malta and once in your home country. This is very helpful for expats working in Malta. DTAs clearly explain which country can tax your income, such as your salary, business profits, or dividends.
How DTAs Help Foreign Workers
If you work in Malta but are from another country, a DTA can help lower your tax.
- Tax credits: You can get credit in your home country for the tax you paid in Malta.
- Exemptions: Some income may be tax-free in one of the countries.
- Lower tax rates: Taxes on things like dividends or interest are often reduced.
How to Avoid Paying Tax Twice
- Check for a DTA: See if Malta has a DTA with your home country.
- Know your tax duties: Find out which income types are covered.
- Submit the right forms: File the required paperwork to claim credits or exemptions.
Knowing about DTAs helps you avoid paying extra taxes and keeps your finances in order while working abroad. These agreements make it easier for people to live, work, and invest between countries.
