Guide to Property Taxes in Malta

Non-resident individuals are generally subject to Maltese tax on income and chargeable gains arising in Malta, including income from Maltese real estate.

Income Tax

Malta applies progressive personal income tax rates, with the applicable rates depending on the taxpayer's personal and family circumstances.

For 2026, the standard single rates are:

Income Tax for Single Nonresidents

Rental Income

A non-resident individual receiving rental income from Maltese real estate may generally choose between two taxation methods.

Under the optional final-tax regime, qualifying rental income is taxed at a flat 15% of gross rent. No deductions or tax refunds are available under this method. The regime applies to qualifying residential and commercial property and is available to both residents and non-residents, provided the applicable conditions are satisfied.

Alternatively, the landlord may declare the rental income under the ordinary income tax system, under which taxable net rental income is subject to the applicable progressive personal income tax rates after qualifying deductions.

The 15% gross-rent regime is therefore particularly useful for standardized international comparisons because the tax liability can be determined directly from gross rental income.

Capital Gains Tax

A nonresident may only sell his property in Malta to a Maltese citizen. However, if he is not able to find a buyer who is either a Maltese or EU citizen, only then can he make the transfer to another foreign national.

In Malta, Capital Gains Tax is actually a transaction cost and not a tax on capital gains. Capital Gains Tax is generally levied at a flat rate of 12% on the transfer value or the selling price. Only brokerage fees can be deducted from the selling price. During the sale, a provisional tax equal to 12% of the selling price must be paid to the notary public who will then pass it on to the Inland Revenue as payment of the tax liability.

• If the seller has inherited the property before 25 January 1992, capital gains tax is levied at a flat rate of 7%.
• If the seller is not involved in property trading, capital gains tax may be levied at a final withholding tax rate of 5% on properties that were sold within five years of acquisition.
• If the seller has acquired the property prior to 01 January 2004, capital gains tax is levied at a final withholding tax rate of 10%.

Corporate Taxation

Maltese companies are generally subject to corporate income tax at a headline rate of 35% on taxable income and chargeable gains.

Qualifying expenses incurred wholly and exclusively in producing taxable income are generally deductible in determining taxable corporate profits.

Companies may also elect to apply the 15% final tax on gross qualifying rental income, subject to the applicable conditions. Where this option is used, the 15% tax is final and ordinary deductions are not available against that rental income.

Malta also operates a shareholder tax-refund and imputation system that can significantly alter the effective tax burden following a distribution of taxed corporate profits. Consequently, the 35% headline corporate rate should not necessarily be interpreted as the ultimate effective tax rate borne by an investor.

Property Buying and Selling Costs/Taxes

Property Holding Tax

Malta does not impose a general recurring annual tax merely for owning real estate.

Property owners can nevertheless incur other property-related charges and taxes associated with acquisition, rental activities and disposal.