Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Malta Non-Dom Regime
Malta's remittance-basis tax system allows non-domiciled residents to pay tax only on foreign income brought into Malta, with foreign capital gains entirely exempt regardless of remittance, and no time limit on non-dom status.
Regime overview
- Status
- Active
- Type
- Preferential
- Duration
- Indefinite
- Highlight
- Foreign capital gains exempt even if remitted
Tax regimes comparison
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 35% / 8%
- Dividends
- None
- Wealth Tax
- None
- Inheritance Tax
- None
Non-Dom Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 0%
- Dividends
- 0-35%
- Wealth Tax
- None
- Inheritance Tax
- None
IP Box Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 1.75% effective
- Foreign Income
- Partially exempt
- Capital Gains
- 95% deduction
- Dividends
- Standard Malta rates
- Wealth Tax
- None
- Inheritance Tax
- None
Highly Qualified Persons (HQP) Rules
- Eligibility
- Residency
- Duration
- 5 years
- Income Tax
- 15% flat
- Foreign Income
- Taxed
- Capital Gains
- N/A
- Dividends
- N/A
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | Non-Dom Regime | IP Box Regime | Highly Qualified Persons (HQP) Rules |
|---|---|---|---|---|
| Eligibility | Any resident | Residency | Residency | Residency |
| Duration | Indefinite | Indefinite | Indefinite | 5 years |
| Income Tax | 0-35% | 0-35% | 1.75% effective | 15% flat |
| Foreign Income | Remittance basis | Remittance basis | Partially exempt | Taxed |
| Capital Gains | 35% / 8% | 0% | 95% deduction | N/A |
| Dividends | None | 0-35% | Standard Malta rates | N/A |
| Wealth Tax | None | None | None | None |
| Inheritance Tax | None | None | None | None |
| Learn more | Learn more |
Key benefits
Foreign capital gains exempt, even if remitted
Indefinite duration with no deemed domicile rules
No wealth, inheritance, or gift taxes
Requirements and considerations
None
Minimum presence: 183 days/year
Migration pathways
Program details
Malta's Resident Non-Domiciled (Res Non-Dom) regime, inspired by the former UK non-dom system, provides a highly favorable tax framework for individuals who establish tax residence in Malta but are not domiciled there. Unlike the UK's recently abolished non-dom regime, Malta's system has no deemed domicile rules and can be maintained indefinitely.
Under the remittance basis, non-domiciled residents are taxed only on: (1) income arising in Malta (at standard progressive rates up to 35%); (2) foreign income that is actually remitted (transferred) to Malta. Crucially, foreign capital gains are entirely exempt from Maltese tax – even if the proceeds are brought into Malta.
Since 2018, Malta has imposed a minimum annual tax of EUR 5K for non-domiciled residents whose foreign income exceeds EUR 35K and who remit less than this amount to Malta.
Malta's regime has become increasingly attractive to former UK non-doms following the abolition of the UK's remittance basis in April 2025.
Interested in Non-Dom Regime?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
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ECJ Ruling on Malta CBI
EUR-Lex Court Judgment C-181/23·Last checked: 16/01/26
Merit-Based Naturalisation Regulations
Malta Parliament Legal Notice 159/2025·Last checked: 16/01/26
2025 Citizenship Act Amendments
Aġenzija Komunità Malta·Last checked: 16/01/26
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