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Useful Information About Paying Taxes In Malta

Property Malta Taxes

Claiming tax credits

Depending on what sector your business is in, you can claim tax credits of up to 50% depending on the size of your capital investments and asset purchases or the equivalent of two years’ wages for hired since December 2013.

Royalty Income from Registered Patents.

Individuals and companies that have the rights to patented intellectual properties in Malta enjoy incentives of additional royalty income. This scheme was put in place to encourage funding for researchers and ensure they can benefit from whatever knowledge they are able to create.

Paying Taxes in Malta as a business owner

Malta uses a single imputation tax system. This means you are not going to pay taxes as a shareholder and as a company. Companies are required to pay 35% taxes in Malta but in reality, you as a shareholder will not pay more than an effective rate of 5%. This is because shareholders will receive a tax refund on the 6th or 7th of the month on all taxes paid once dividends have been shared which brings down the total amount you pay as a company owner.

Paying taxes as a foreign national

Malta has tax agreements with over 65 nations that help you save more when you invest in Malta. Maltese tax treaties with most countries ensure that you do not pay taxes in your country of residence for profits earned in Malta. If you are not exempt, your country of residence will be mandated to give you a tax credit for the Malta tax which you are exempted from. This makes investing in Malta a good option for foreign nationals.

  • Research & Development tax credits Investments in research and development are subject to a tax credit percentage depending on how big the business venture is. You are also entitled to bonuses when you collaborate on projects with other industries and research institutes. Expenses covered by these credits include researcher wages, costs of equipment and research project supplies, outsourced research, patent and other knowledge acquisition-related expenses.
  • Investment Aid Tax Credits: All new investments in Malta are welcome and this program helps to attract investments in Malta. The investment aid tax credits only exclude maritime, training and aviation services. Other eligible businesses can benefit from getting back a percentage of the investment value as calculated by guidelines in the incentive document.


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Even if you are unable to claim your tax credits as in investor in a business year, you can carry them forward to succeeding years and still avail yourself to them.

Contact Us,

Our Corporate Real Estate Unit is made up of financial advisors and professionals that can advise you on how to maximize the potential of your investment in Malta whether real estate related or otherwise. You can click here to send us an email and we will get back to you shortly. You can also call us on +356 77047001 for a free consultancy meeting.