Malta Sets New Tax Rates for Foreign Residents in 2027

Malta has announced new tax regulations for foreign residents holding special tax status, effective from January 2027. The regulations establish a flat tax rate of 15% on income earned outside Malta that is received within the country by qualifying beneficiaries, their spouses, and eligible dependants.

The minimum annual tax amounts differ based on the residency category: individuals under the general residential category will pay a minimum of €35,000, while those with pension income received entirely in Malta will pay €15,000. Beneficiaries under the United Nations pension or widows' and widowers' benefit category will have their pension income exempt from tax, but any other foreign-sourced income will be taxed at 15%, with a minimum payment of €20,000.

Income not covered by the 15% rate will be taxed at a higher rate of 35%. The minimum tax is due by 30th April of the year preceding the assessment year, and any tax paid is non-refundable.

Long-term or permanent residents lose their special tax status and are subject to standard Maltese income tax rates.