DoubleTaxationTaxes on salary: Malta preliminary data
How much income tax and social contributions are paid on a salary in Malta, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | €60,001 |
|---|---|
| Income tax | €11,600 |
| Employee contributions | €2,768 |
| Take-home pay | €45,633 |
| Employer contributions and payroll taxes | €2,768 |
| Employer's labour cost | €62,769 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 | €60,000 | €120,000 |
|---|---|---|---|
| Sole proprietor | €7,400 27.4 % | €14,252 26.4 % | €32,552 30.1 % |
| Company | €9,450 35.0 % | €18,900 35.0 % | €37,800 35.0 % |
Special tax regimes
Highly Qualified Persons Rules (art. 56(21), S.L. 123.126)
For employees · rate 15.0 %
Who: Non-domiciled professionals in an eligible senior office with qualifying employment income of at least EUR 75,000 a year (RPI-indexed); 5 consecutive years for EEA/Swiss nationals, 4 years for third-country nationals, extendable up to 15/12 years.
Employment income under a qualifying contract taxed at a flat 15% (no other relief), with income above EUR 5,000,000 untaxed; rest of income at normal rates.
Legal basis: Income Tax Act (Cap. 123) art. 56(21); Highly Qualified Persons Rules (S.L. 123.126) rules 3-6
Special temporary tax status (art. 56(24))
For people relocating · rate 15.0 %
Who: Individuals granted special temporary tax status after 1 Jan 2011 under ministerial terms (residence programmes).
Chargeable income taxed at a flat 15%, subject to a minimum tax prescribed by the Minister.
Legal basis: Income Tax Act (Cap. 123) art. 56(24)
Returning person established in a field of excellence (art. 56(25))
For people relocating · rate 15.0 %
Who: Individuals ordinarily resident in Malta for at least 20 years who return after at least 10 consecutive years abroad and are established in a field of excellence.
Employment income in Malta taxed at a flat 15%.
Legal basis: Income Tax Act (Cap. 123) art. 56(25)
Residence Programme Rules (S.L. 123.160) — EU/EEA/Swiss nationals
For people relocating · rate 15.0 %
Who: EU, EEA or Swiss nationals (not Maltese) granted special tax status who buy or rent qualifying property in Malta and meet health-insurance and other conditions.
Foreign-source income remitted to Malta taxed at a flat 15% (double-tax relief available), minimum tax EUR 15,000 a year; other income at 35%.
Legal basis: Income Tax Act (Cap. 123) art. 56; Residence Programme Rules (S.L. 123.160) rule 5
Malta Retirement Programme Rules (S.L. 123.134)
For pensioners · rate 15.0 %
Who: Non-Maltese, non-domiciled pensioners whose pension (received in Malta) is at least 75% of chargeable income, not in employment, holding qualifying property and health insurance.
Foreign-source income received in Malta taxed at a flat 15%, minimum tax EUR 7,500 a year plus EUR 500 per dependant; other income at 35%.
Legal basis: Income Tax Act (Cap. 123); Malta Retirement Programme Rules (S.L. 123.134) rules 4-5
Tax residence
The tax residence check does not cover Malta yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.000012 EUR (ECB euro reference rate, 2026-01-02) ↗
Sources
- legislation.mt — Income Tax Act, Cap. 123 (consolidated, incl. Act III of 2026), art. 56
- legislation.mt — Social Security Act, Cap. 318, Tenth Schedule (rates of contributions, incl. L.N. 10 of 2025)
- legislation.mt — Highly Qualified Persons Rules (S.L. 123.126)
- legislation.mt — Residence Programme Rules (S.L. 123.160)
- legislation.mt — Malta Retirement Programme Rules (S.L. 123.134)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.