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Withholding tax in Malta 2026
Malta withholds remarkably little from non-residents: 0% on dividends (the imputation credit travels with them), and interest and royalties are exempt outright absent a Maltese business base.
Rents and other Maltese income are different — 25% is withheld on account, credited in full against the final bill.
At a glance
- top rate
- 25% (on-account, rents and similar income)
- entry band
- 0% on dividends, interest and royalties
- tax year basis
- Withheld when paid; remitted within 30 days
- filing deadline
- Standard return rules apply to non-residents
- residency basis
- Malta-source payments to non-residents
- regime flag
- Share gains exempt unless the company is mainly Maltese real estate
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends — the imputation credit means no further Maltese tax |
| 0% | — | Interest and royalties not connected to a Maltese permanent establishment |
| 25% | Gross | Rents and other Maltese income (not dividends/interest/royalties) — on account, fully creditable |
| 8% final | Sale price | Maltese real estate sold by non-residents — same final transfer tax as residents |
| 20% / 30% / 35% | Taxable income | Non-resident scale on assessed Malta income — 35% from EUR 7,800 |
Thresholds & allowances
- Non-resident 0% bandEUR 700
The compressed non-resident scale: 20% to EUR 3,100, 30% to EUR 7,800, then 35%
- Resident-rate option90% of income
European Union / European Economic Area (EEA) nationals earning 90%+ of worldwide income in Malta use resident scales, credits and deductions
Residency
Residency trigger
Non-resident status follows from not living in Malta; even one day of Maltese work can be taxable if there is no treaty cover, with the employer withholding through payroll.
Non-resident treatment
Treaty relief follows the standard model: employment income escapes Maltese tax below 183 days if paid by a non-Maltese employer without a Maltese base; capital gains on Maltese shares are exempt unless the company mainly holds Maltese real estate.
Notes
- Withheld amounts on rents and similar income must reach the tax authority within 30 days and are credited in full when the year is assessed.
- Non-residents inheriting or holding Maltese assets face no ongoing withholding — only the transaction taxes described in the other sections.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; Malta has not yet transposed them.
FAQ
What does Malta withhold on payments to non-residents?
0% on dividends, interest and royalties; 25% on account on rents and similar Maltese income, credited against the final assessment.
How are non-resident workers taxed?
On a compressed scale reaching 35% at just EUR 7,800 — though European Union / European Economic Area (EEA) nationals earning 90%+ of their income in Malta can elect the resident bands instead.
Figures: tax year 2026, compiled from public sources. Not tax advice.